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 at 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 or strategically important technologies, and facilitating the setting up 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 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, while also reviewing the scheme's performance. The Department of Science and Technology (DST) will serve as the nodal department for implementation. The scheme employs a two-tiered funding mechanism: a Special Purpose Fund (SPF) within ANRF will act as custodian, allocating funds to second-level fund managers mainly through long-term concessional loans. These fund managers will then finance R&D projects, typically via long-term loans at low or nil interest rates, with potential equity financing for startups. Contributions to a DeepTech Fund of Funds (FoF) or other RDI-focused FoFs may also be considered. The RDI Scheme aims to foster self-reliance and global competitiveness, facilitating an innovation ecosystem for India's progression towards Viksit Bharat 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.
Narendra Modi: Prime Minister of India, chairing the Union Cabinet.
Anusandhan National Research Foundation ANRF: A national research foundation, whose Governing Board will provide strategic direction to the RDI Scheme.
Executive Council EC: The Executive Council of ANRF which will approve the Schemes guidelines, and recommend fund managers and scope of projects.
Empowered Group of Secretaries EGoS: Led by the Cabinet Secretary, responsible for approving scheme changes, sectors and types of projects as well as fund managers.
Department of Science and Technology DST: The nodal department for implementation of RDI Scheme.
Special Purpose Fund SPF: A fund established within the ANRF, which will act as the custodian of funds for the RDI scheme.
DeepTech Fund of Funds FoF: A fund of funds meant for RDI projects.
Cabinet
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 3:08PM 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
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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: 2141130)