**Executive Summary**
The document outlines the Indian government's Research, Development, and Innovation (RDI) Scheme, approved on July 1, 2025, to bolster private sector involvement in R&D. The scheme has a ₹1 lakh crore corpus over six years, with ₹20,000 crore allocated in the FY 2025-26 Union Budget for implementation. The scheme aims to enhance domestic technological capabilities and improve the global competitiveness of Indian industry.
**Key Points / Main Content**
* **RDI Scheme Overview:**
* Approved on July 1, 2025, by the Union Cabinet.
* Aims to promote enhanced participation of the private sector in research and development.
* **Financial Details:**
* Corpus of ₹1 lakh crore over six years.
* ₹20,000 crore allocated in the Union Budget for FY 2025-26.
* Financial support primarily through long-tenor, low-interest financing.
* Equity financing will be considered, especially for startups, and contributions will be made to Deep Tech Funds.
* **Implementation:**
* Two-tiered funding mechanism via Second Level Fund Managers (SLFMs).
* SLFMs may include Alternate Investment Funds (AIFs), Development Finance Institutions (DFIs), Non-Banking Financial Companies (NBFCs), and Focused Research Organisations (FROs).
* **Focus Sectors:**
* Energy security and energy transition.
* Deep technologies (quantum computing, robotics, space technologies).
* Artificial intelligence (applications in agriculture, health, and education).
* Biotechnology, biomanufacturing, synthetic biology, pharmaceuticals, and medical devices.
* Digital economy (including digital agriculture).
* **Project Selection & Monitoring:**
* Demand-driven and outcome-oriented approach.
* Projects supported based on technological merit, strategic relevance, and potential economic impact.
* Focus on projects at Technology Readiness Level (TRL) 4 and above.
* Progress and outcomes to be monitored through appropriate institutional mechanisms.
* **Objectives:**
* Enhance domestic technological capabilities.
* Reduce import dependence.
* Strengthen supply chain resilience.
* Improve the global competitiveness of Indian industry.
**Impact Analysis**
**Private Sector**
* **Impact:** Increased access to funding for R&D projects, promoting innovation and growth.
* **Action Required:** To identify suitable R&D projects, apply for funding through the scheme, and meet the necessary criteria.
**Startups**
* **Impact:** Access to equity financing to facilitate long-term investments in high-risk and high-impact R&D.
* **Action Required:** To apply for equity financing, meet the requirements for start-up eligibility, and align with the scheme's objectives.
**Second Level Fund Managers (SLFMs)**
* **Impact:** Opportunity to participate in the implementation of the RDI Scheme through the two-tiered funding mechanism.
* **Action Required:** To adhere to approved guidelines, manage and allocate funds to suitable R&D projects, and monitor their progress and outcomes.
**The Nation**
* **Impact:** Expected economic and financial gains through enhanced domestic technological capabilities, reduced import dependence, and improved global competitiveness.
* **Action Required:** No direct action required, but will benefit from the overall success of the scheme.
Key Entities Referenced
Research, Development and Innovation (RDI) Scheme: A scheme approved by the Union Cabinet to promote enhanced private sector participation in research and development, with a corpus of ₹1 lakh crore.
Ministry of Science and Technology: The ministry responsible for answering the question about the corpus fund and overseeing related initiatives.
Union Budget: The national budget that has allocated ₹20,000 crore for the implementation of the RDI Scheme for FY 2025-26.
Technology Development Board (TDB): An example of a Focused Research Organisation (FRO) that may be involved in the implementation of the RDI Scheme.
GOVERNMENT OF INDIA
MINISTRY OF SCIENCE AND TECHNOLOGY
DEPARTMENT OF SCIENCE AND TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 706
ANSWERED ON 04/02/2026
CORPUS FUND FOR FUNDING R&D IN PRIVATE SECTOR
706. SHRI T R BAALU:
Will the Minister of SCIENCE AND TECHNOLOGY be pleased to
state:
(a) the details of the huge corpus fund to be established for funding
Research and Development in private sector specially the time
horizon of the Scheme, current year budget allocation, sunrise
sectors identified for acquisition and development of indigenous
Technologist;
(b) the industry wise targets set for R&D promotion industry wise
and the time for realization of targets; and
(c) the details of economic and financial gains likely to accrue
nation expected from providing of financial support to private sector?
ANSWER
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE
MINISTRY OF SCIENCE AND TECHNOLOGY AND EARTH SCIENCES
(DR. JITENDRA SINGH)
(a) The Union Cabinet has approved the Research, Development
and Innovation (RDI) Scheme on 01 July 2025 to promote enhanced
participation of the private sector in research and development. The
Scheme envisages a corpus of ₹1 lakh crore over a period of six
years. Financial support under the Scheme will be provided primarily
through long-tenor, low interest financing which is expected to be
unsecured. Equity financing will also be considered specially for
startups. The scheme will also contribute to Deep Tech Funds of
Fund. The scheme will facilitate long-term investments in high-risk
and high-impact R&D.
An allocation of ₹20,000 crore has been made in the Union Budget for
FY 2025–26 for implementation of the Scheme.
Page 1 of 2The Scheme will follow a two-tiered funding mechanism, wherein the
second level of implementation will be undertaken through
appropriate Second Level Fund Managers (SLFMs), which may
include Alternate Investment Funds (AIFs), Development Finance
Institutions (DFIs), Non-Banking Financial Companies (NBFCs), and
Focused Research Organisations (FROs) such as the Technology
Development Board (TDB), Biotechnology Industry Research
Assistance Council (BIRAC), IIT Research Parks, and other similar
institutions, in accordance with approved guidelines.
The sunrise sectors identified under the RDI Scheme include energy
security and energy transition including climate action; deep
technologies such as quantum computing, robotics and space
technologies; artificial intelligence and its applications in
agriculture, health and education; biotechnology, biomanufacturing,
synthetic biology, pharmaceuticals and medical devices; and the
digital economy including digital agriculture. The Scheme will also
support technologies critical for strategic requirements, economic
security and Atmanirbharta, as well as any other sector or technology
considered necessary in public interest.
(b) The RDI Scheme adopts a demand-driven and outcome-oriented
approach, wherein projects will be supported based on their
technological merit, strategic relevance, and potential economic
impact. The time frame for realization of outcomes will vary
depending on the sector, technology maturity, and level of innovation,
with a focus on projects at Technology Readiness Level (TRL) 4 and
above. Progress and outcomes will be monitored through appropriate
institutional mechanisms during the Scheme period.
(c) By enabling greater private sector investment in R&D, the
Scheme aims to enhance domestic technological capabilities, reduce
import dependence, strengthen supply chain resilience, and improve
global competitiveness of Indian industry.
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