New Delhi, July 3: India’s Union Cabinet has approved a ₹1 lakh crore ($12 billion) Research Development and Innovation (RDI) Scheme aimed at boosting private sector investment in high-impact research and development, Union Minister Ashwini Vaishnaw announced on Tuesday.
The scheme is designed to offer long-term financing or refinancing with extended tenors at low or zero interest rates, targeting sunrise sectors and areas of strategic importance. It is expected to play a pivotal role in driving innovation, supporting critical technology acquisition, and enhancing India’s economic and strategic self-reliance.
“The RDI Scheme will provide much-needed growth and risk capital to the private sector for research in transformative and strategic domains,” Vaishnaw said, adding that it will help overcome existing funding constraints that have limited private participation in advanced R&D.
Under the plan, the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overarching strategic direction. A two-tiered funding model will be used to implement the scheme.
At the first level, a Special Purpose Fund (SPF) will be set up within ANRF to act as the custodian of the ₹1 lakh crore corpus. From this pool, funds will be distributed to second-level fund managers, who in turn will provide long-term concessional loans to eligible R&D projects.
The scheme is expected to encourage private sector participation in higher stages of Technology Readiness Levels (TRLs) and promote the commercialisation of research in sectors crucial for national security and competitiveness. The initiative also includes support for setting up a Deep-Tech Fund of Funds, aimed at accelerating technological advancements in cutting-edge areas.
