Research Development and Innovation (RDI) Scheme

On 1 July 2025, the Union Cabinet chaired by PM Narendra Modi approved the Research Development and Innovation (RDI) Scheme under the Anusandhan National Research Foundation (ANRF), with a financial outlay of ₹1 lakh crore.

• This initiative aims to significantly enhance India’s innovation ecosystem by encouraging private sector participation through long-term financing at low or zero interest.

Key Objectives

• Incentivizing Private Investment: Offer long-tenure, low/zero-interest financing or refinancing to boost private R&D in strategic and sunrise sectors.
• Funding Advanced Projects: Support transformative projects at high Technology Readiness Levels (TRL).
• Acquisition of Critical Technologies: Facilitate private sector access to strategically important and critical technologies.
• Deep‑Tech Fund of Funds: Establish a dedicated fund to support deep-tech innovation ventures.

Institutional and Funding Framework

• Governing Board of ANRF: Chaired by the Prime Minister, responsible for overarching strategic guidance.
• Executive Council (EC) of ANRF: Approves guidelines and recommends second‑level fund managers and project scopes.
• Empowered Group of Secretaries (EGoS): Led by the Cabinet Secretary, responsible for approving modifications to the scheme, fund managers, sectors, and performance evaluations.
• DST as Nodal Department: The Department of Science & Technology will implement the RDI scheme.
• Two-Tier Funding Model:
  • Tier-1: Special Purpose Fund (SPF) within ANRF.
  • Tier-2: Loans, equity, or fund-of-funds contributions via second-level fund managers.

Significance

• Self‑reliance & Global Competitiveness: Long-term affordable financing strengthens India’s global positioning in innovation.
• Private Sector Engagement: Unlocks risk capital for startups and research in strategic and emerging technology areas.
• Catalyst for ‘Viksit Bharat 2047’: Establishes a foundation for India’s futuristic development goals with a robust R&D ecosystem

(Source: PIB)