In a landmark move to strengthen India’s research and innovation ecosystem, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the ₹1 lakh crore Research Development and Innovation (RDI) Scheme. The scheme is aimed at catalysing private sector investment in cutting-edge research, development, and technology adoption, particularly in sunrise and strategic sectors
The RDI Scheme will offer long-term concessional financing or refinancing, including loans at low or zero interest rates and potential equity support, to overcome funding challenges in private R&D. It will also enable acquisition of critical technologies and support the creation of a Deep-Tech Fund of Funds.
Key objectives include incentivizing R&D in sectors critical to economic security and self-reliance, supporting high Technology Readiness Level (TRL) projects, and improving competitiveness. The scheme will follow a two-tier funding structure, with a Special Purpose Fund (SPF) under the Anusandhan National Research Foundation (ANRF) acting as custodian. Funds will be disbursed to second-level fund managers for project financing.
Strategic oversight will be provided by ANRF's Governing Board, chaired by the Prime Minister. The Executive Council of ANRF will set guidelines and select fund managers, while an Empowered Group of Secretaries, led by the Cabinet Secretary, will review performance and approve scheme modifications. The Department of Science and Technology (DST) will be the nodal body for implementation.
