Cabinet Approves ₹1 Lakh Crore RDI Scheme to Drive Private Sector Innovation in Key Technology Sectors
By Shishta Dutta | Updated at: Oct 27, 2025 12:02 PM IST
Mumbai, 01 July 2025: In a decisive step towards strengthening India’s innovation-led growth, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Research Development and Innovation (RDI) Scheme with a financial outlay of ₹1 lakh crore. This landmark initiative aims to enhance private sector participation in advanced research, particularly across strategic and sunrise sectors vital to India’s technological and economic ambitions.
Scheme Targets Long-Standing Challenges in Innovation Financing
The RDI Scheme is designed to bridge critical financing gaps that have traditionally hindered private R&D investments. It will extend long-tenure funding at low or nil interest rates to support high-impact innovation and technology development projects.
Key Objectives of the RDI Scheme
| Objective | Description |
|---|---|
| Private Sector Boost | Encourages scaling up of R&D and innovation in sunrise sectors and those critical for national security and self-reliance |
| Advanced Tech Projects | Finances projects at higher levels of Technology Readiness Levels (TRL) |
| Strategic Tech Acquisition | Supports acquisition of critical and strategic technologies |
| Deep-Tech Investment | Facilitates creation of a dedicated Deep-Tech Fund of Funds |
Governance Model Anchored by Prime Minister-Led Research Foundation
The scheme will be strategically guided by the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister. The Executive Council of ANRF will formulate operational guidelines, recommend fund managers, and identify focus sectors.
An Empowered Group of Secretaries (EGoS), led by the Cabinet Secretary, will oversee project approvals, modifications to the scheme framework, and selection of fund managers. The Department of Science and Technology (DST) will act as the central implementing agency, ensuring seamless coordination across stakeholders.
Two-Tiered Funding Framework to Support Equity and Loan-Based Models
The financial structure of the RDI Scheme is built on a two-tier model that facilitates a mix of equity investment and long-term concessional loans, tailored to support a range of innovation-driven enterprises.
Funding Structure Overview
| Tier | Description |
|---|---|
| Tier 1 | A Special Purpose Fund (SPF) within ANRF will hold the corpus |
| Tier 2 | Funds will be disbursed to second-level fund managers for allocation as long-term concessional loans or equity investments |
Startups and enterprises with high R&D intensity will have access to both equity-based funding and contributions from the Deep-Tech Fund, enhancing capital availability for commercialising research.
Accelerating India’s Journey Toward Viksit Bharat by 2047
The RDI Scheme plays a pivotal role in realising the government’s long-term vision of Viksit Bharat by 2047. By empowering the private sector to translate research into scalable technology solutions, the scheme aims to position India as a global innovation hub.
The initiative aligns with national goals of self-reliance, technological leadership, and enhanced competitiveness in areas ranging from advanced manufacturing to defence technology and green energy.
About the RDI Scheme
The Research Development and Innovation (RDI) Scheme is part of India’s broader strategy to integrate science, technology, and innovation with national development priorities. With its ₹1 lakh crore allocation, structured governance, and private sector focus, it is expected to catalyse a robust innovation ecosystem capable of delivering high-impact outcomes across critical sectors by 2047
REF: https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2141130
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