**Summary:**
The Union Cabinet has approved the Research Development and Innovation (RDI) Scheme with a corpus of Rs. One lakh Crore to scale up research, development, and innovation in strategic and sunrise domains. The scheme aims to encourage private sector investment in RDI by providing long-term financing or refinancing with low or nil interest rates. Key objectives include encouraging private sector RDI in sunrise domains and sectors relevant for economic security and self-reliance, financing transformative projects at higher Technology Readiness Levels (TRL), supporting the acquisition of critical technologies, and facilitating the establishment of a DeepTech Fund of Funds.
The Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide strategic direction. The Executive Council (EC) of ANRF will approve scheme guidelines and recommend fund managers and project scope. An Empowered Group of Secretaries (EGoS), led by the Cabinet Secretary, will approve scheme changes, sectors, project types, and second-level fund managers, and will review scheme performance. The Department of Science and Technology (DST) will serve as the nodal department for implementation.
The RDI Scheme will operate with a two-tiered funding mechanism. A Special Purpose Fund (SPF) will be established within the ANRF as the custodian of funds, which will then be allocated to second-level fund managers. Funding to R&D projects by these managers will primarily be in the form of long-term loans at low or nil interest rates, with the possibility of equity financing, especially for startups. Contributions to a DeepTech Fund of Funds or other RDI-focused Funds of Funds will also be considered. The scheme aims to foster self-reliance and global competitiveness, facilitating a conducive innovation ecosystem for India's development goals by 2047.
Key Entities Referenced
Research Development and Innovation RDI Scheme: A scheme approved by the Union Cabinet to scale up research, development, and innovation in strategic and sunrise domains.
Prime Minister Shri Narendra Modi: The Prime Minister of India, who chaired the Union Cabinet meeting that approved the RDI Scheme.
Anusandhan National Research Foundation ANRF: The organization whose Governing Board, chaired by the Prime Minister, will provide strategic direction to the RDI Scheme. A Special Purpose Fund (SPF) will be established within the ANRF.
Executive Council EC: The Executive Council of ANRF will approve the RDI Scheme's guidelines and recommend fund managers.
Empowered Group of Secretaries EGoS: Led by the Cabinet Secretary, this group is responsible for approving scheme changes, sectors, and types of projects for the RDI Scheme.
Department of Science and Technology DST: The nodal department for the implementation of the RDI Scheme.
DeepTech Fund of Funds: A fund that the RDI Scheme aims to facilitate the setting up of.
Viksit Bharat @ 2047: The vision of a developed India by 2047, towards which the RDI Scheme aims to contribute.
Ministry of Finance
Cabinet Approves Research Development and
Innovation (RDI) Scheme to scale up Research,
Development and Innovation in Strategic and
Sunrise Domains
Posted On: 01 JUL 2025 3:09PM by PIB Delhi
In a transformative step to bolster India’s research and innovation ecosystem, the Union Cabinet, chaired by
Prime Minister Shri Narendra Modi, has today approved the Research Development and Innovation (RDI)
Scheme with a corpus of Rs. One lakh Crore.
Recognizing the critical role that the private sector plays in driving innovation and commercializing
research the RDI Scheme aims to provide long-term financing or refinancing with long tenors at low or nil
interest rates to spur private sector investment in RDI. The scheme has been designed to overcome the
constraints and challenges in funding of private sector and seeks to provide growth & risk capital to sunrise
and strategic sectors to facilitate innovation, promote adoption of technology and enhance
competitiveness. Key objectives of the Scheme are as follows:
a) Encourage the private sector to scale up research, development, and innovation (RDI) in sunrise
domains and in other sectors relevant for economic security, strategic purpose, and self-reliance;
b) Finance transformative projects at higher levels of Technology Readiness Levels (TRL)
c) Support acquisition of technologies which are critical or of high strategic importance;
d) Facilitate setting up of a Deep-Tech Fund of Funds.
The Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime
Minister, will provide overarching strategic direction to the RDI Scheme. The Executive Council (EC) of
nd
ANRF will approve the Scheme’s guidelines, and recommend 2 level fund managers and scope and type of
projects in sunrise sectors. An Empowered Group of Secretaries (EGoS) led by the Cabinet Secretary, will be
responsible for approving scheme changes, sectors and types of projects as well as second-level fund
managers besides reviewing the performance of the Scheme. The Department of Science and Technology
(DST) will serve as the nodal department for implementation of RDI Scheme.
The RDI Scheme will have a two-tiered funding mechanism. At the first level, there will be a Special
Purpose Fund (SPF) established within the ANRF, which will act as the custodian of funds. From the SPF
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funds shall be allocated to a variety of 2 level fund managers. This will be mainly in the form of long-term
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concessional loans. The funding to R&D projects by the 2 level fund managers would normally be in the
form of long-term loan at low or nil interest rates. Financing in the form of equity may also be done,
especially in case of startups. Contribution to Deep-Tech Fund of Funds (FoF) or any other FoF meant for
RDI may also be considered.
By addressing the critical need of private sector for long-term, affordable financing, the RDI Scheme
fosters self-reliance and global competitiveness, thereby facilitating a conducive innovation ecosystem for the
country as it marches towards Viksit Bharat at 2047.
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MJPS/BM(Release ID: 2141132)