In a historic move to position India as a global leader in science and technology, Prime Minister Narendra Modi unveiled the ₹1 lakh crore Research, Development and Innovation (RDI) Scheme at the Emerging Science, Technology and Innovation Conclave (ESTIC) 2025 in New Delhi on November 3, 2025. The fund aims to catalyze private-sector R&D in high-stakes domains like artificial intelligence, semiconductors, space technology, defense deep-tech, biotechnology, quantum computing, and clean energy, addressing India’s longstanding R&D spending gap and fostering innovation sovereignty under the Atmanirbhar Bharat vision.
Key Features of the RDI Fund
Financial Outlay and Structure
- Total Corpus: ₹1 lakh crore ($12 billion) over six years.
- Initial Allocation: ₹20,000 crore for FY26 from the Consolidated Fund of India.
- Funding Mechanisms:
- Zero/Low-Interest Loans: For capital-intensive R&D projects.
- Equity Investments: Direct stakes in high-potential deep-tech startups.
- Fund of Funds: Co-investing with VC firms in early-stage ventures.
Governance and Oversight
- Nodal Agencies: NITI Aayog, MeitY, DST.
- Implementation Body: Anusandhan National Research Foundation (ANRF).
- Advisory Board: Scientists, industry leaders, and policymakers.
Target Sectors and Strategic Priorities
1. Artificial Intelligence (AI)
- Focus Areas: Generative AI, machine learning infrastructure, and AI ethics.
- Alignment: IndiaAI Mission and National AI Strategy.
2. Semiconductors
- Focus Areas: Chip design, fabrication, and packaging.
- Goal: Reduce import reliance in the $110 billion semiconductor market.
3. Space Technology
- Focus Areas: Satellite communications, launch vehicles, and planetary exploration.
- Synergy: IN-SPACe and private sector space reforms.
4. Defense Deep-Tech
- Focus Areas: Autonomous systems, cybersecurity, and advanced materials.
- Impact: Strengthening indigenous defense capabilities.
5. Biotechnology
- Focus Areas: Drug discovery, genomics, and bio-manufacturing.
- Market Context: $140 billion Indian bio-economy by 2025.
6. Quantum Computing
- Focus Areas: Quantum algorithms, cryptography, and hardware.
- National Mission: National Quantum Mission (2023).
7. Clean Energy
- Focus Areas: Green hydrogen, energy storage, and carbon capture.
- Policy Linkage: National Green Hydrogen Mission.
Addressing India’s R&D Gap
Current Challenges
- Low R&D Spend: 0.7% of GDP, compared to 2–3% in leading economies.
- Private Sector Underinvestment: Limited participation in high-risk research.
- Talent Drain: Emigration of scientists and engineers.
RDI Fund’s Solutions
- De-risking Innovation: Providing patient capital for long-gestation projects.
- Public-Private Partnerships: Incentivizing corporate R&D centers.
- Skill Development: Creating 500,000+ jobs in research and engineering.
Leadership Perspectives
Prime Minister Narendra Modi
“The RDI Fund is a national engine of innovation, empowering our brightest minds to solve India’s greatest challenges. From semiconductors to sustainable energy, we are building a future designed and made in India.”
Abhay Karandikar, Secretary, DST
*“This fund empowers corporates and startups to aim for global tech leadership by 2030. We’re creating an ecosystem where high-risk R&D becomes a strategic priority.”*
Implementation Framework
Eligibility and Application Process
- Eligible Entities: Startups, MSMEs, corporates, research institutions, and academic consortia.
- Selection Criteria:
- Technological novelty and scalability.
- Potential for import substitution or global leadership.
- Alignment with national priorities.
Monitoring and Evaluation
- Milestone-Based Disbursements: Funding tied to project progress.
- Impact Metrics: Patents filed, products commercialized, jobs created.
- Third-Party Audits: Ensuring transparency and accountability.
Expected Outcomes and Impact
Economic and Strategic Benefits
- R&D Spend: Target to increase to 2% of GDP by 2030.
- Import Reduction: Cutting reliance on critical technologies like chips and pharmaceuticals.
- Global Ranking: Elevating India among top innovative nations (currently 40th in GII).
Sector-Specific Projections
- AI: 10,000+ AI startups by 2030.
- Semiconductors: 3–4 domestic fabs and 50+ design startups.
- Space: $50 billion space economy with 50% private share.
Alignment with National Initiatives
Atmanirbhar Bharat
- Self-Reliance: Reducing dependency on foreign technology.
- Job Creation: High-skilled employment in R&D and manufacturing.
IndiaAI Mission
- Compute Infrastructure: Funding for AI compute clusters.
- Data Ecosystems: Supporting indigenous AI datasets and models.
National Quantum Mission
- Quantum R&D: Scaling research in quantum communication and computing.
Challenges and Mitigation Strategies
Implementation Risks
- Bureaucratic Delays: Streamlined approval via single-window systems.
- Project Failures: Portfolio approach to balance high-risk bets.
Market Risks
- Global Competition: Focusing on niche areas with comparative advantage.
- IP Protection: Strengthening patents and technology transfer protocols.
Conclusion: A New Era for Indian Innovation
For entrepreneurs, researchers, and corporations, the fund represents an unprecedented opportunity to pursue ambitious projects with national impact. As India races toward technological self-reliance, the RDI Fund could become the cornerstone of a vibrant, homegrown innovation ecosystem—powering the nation’s rise as a global science and technology leader.
