PM Modi Launches RDI Fund to Boost Private Investment in Research and Innovation

On November 3, 2025, Prime Minister Narendra Modi launched the ₹1 lakh crore Research, Development and Innovation (RDI) Fund to promote private sector investment in R&D and innovation.

• The launch took place during the first-ever Emerging Science, Technology and Innovation Conclave (ESTIC) — a platform uniting policy makers, innovators, and global visionaries to advance the government’s Viksit Bharat 2047 vision.

Objective of the RDI Fund

• To strengthen India’s research ecosystem by encouraging private sector participation in cutting-edge innovation.
• To bridge the funding gap between scientific research and commercial application.
• To align national R&D initiatives with the long-term goal of transforming India into a developed nation by 2047.

Nodal Agency and Fund Structure

• The Department of Science and Technology (DST) will serve as the nodal ministry for the RDI Fund.
• The Fund will function through a two-tiered structure:
  1. First Level – Special Purpose Fund (SPF):
     • To be established within the Anusandhan National Research Foundation (ANRF).
     • The SPF will act as the custodian of the ₹1 lakh crore corpus.
  2. Second Level – Fund Managers:
     • Capital from the SPF will be channelled through professional fund managers, not directly to startups or industries.
     • These fund managers may include Alternative Investment Funds (AIFs), Development Finance Institutions (DFIs), and Non-Banking Finance Companies (NBFCs).

Governance and Oversight

• Investment committees comprising financial, business, and technical experts will evaluate and recommend proposals for support.
• These committees will operate at arm’s length from the government, ensuring transparency and independence in funding decisions.

Source: PIB