PM Modi Unveils ₹1 Lakh Crore RDI Fund to Propel India’s Private-Sector Innovation Drive”
In a landmark move, Prime Minister Narendra Modi has launched the Research, Development and Innovation (RDI) Scheme, a ₹1 lakh crore fund designed to inject fresh momentum into India’s research, development and innovation ecosystem.
The fund is aimed at boosting private-sector investment in strategic and sunrise domains, aligning with India’s broader ambition of self-reliance and global technological leadership.
Why this matters:
India has long faced a gap in R&D investment both in overall volume and in private-sector participation. Under this scheme:
The funding will target high-tech and emerging sectors such as artificial intelligence, deep-tech, biotechnology, advanced materials and manufacturing.
The private sector, crucial for innovation and commercialization, is being explicitly empowered through long-term, low-interest or no-interest financing, reducing one of the biggest bottlenecks for high-risk, high-impact research.
The scheme is structured via a two-tier funding model: a Special Purpose Fund (SPF) under the Anusandhan National Research Foundation (ANRF) will disburse funds to second-level managers (funds, AIFs, NBFCs) who in turn finance projects.
Key features of the scheme:
Corpus: ₹1 lakh crore dedicated to the RDI fund.
Mechanism: Long-term financing at low or zero interest for selected projects with high Technology Readiness Levels (TRLs). Equity investments may also be made, particularly for startups.
Focus domains: “Sunrise” sectors and areas relevant for economic security and strategic purpose (for example, tech sovereignty, deep-tech, next-gen manufacturing).
Oversight & governance: The ANRF Governing Board (chaired by the Prime Minister) provides strategic direction; an Executive Council sets guidelines; an Empowered Group of Secretaries (EGoS) monitors implementation.
What the launch event signals:
The scheme’s announcement comes alongside the inauguration of the Emerging Science & Technology Innovation Conclave (ESTIC) 2025 in New Delhi, which is bringing together researchers, industry leaders and policymakers. The timing emphasises the government’s intent to create an innovation ecosystem where academia, industry and start-ups converge.
What’s expected going forward:
Greater flow of private capital into R&D: By lowering the cost and risk of investment, firms may scale up their own in-house innovation or partner with research institutions.
Commercialisation of research and increased “deep-tech” start-ups: With dedicated financing, emerging companies working in frontier sciences may gain traction.
Technology sovereignty: The fund supports acquisition of critical technologies and indigenisation, aligning with the “Atmanirbhar Bharat” vision.
Challenges and caveats:
While the scheme is ambitious, its success will depend on:
Transparent and efficient implementation: Ensuring the funds are channelled effectively and not delayed by bureaucracy.
Selection of high-impact projects: Prioritising those with genuine break-through potential, rather than incremental work.
Private sector readiness: Many companies may need to scale up their R&D capability and risk appetite to fully utilise the fund.
Monitoring and outcomes: Tracking measurable outcomes, patent output, commercial deployment and ROI will be key.
Conclusion:
With the launch of this ₹1 lakh crore RDI scheme, the Modi government is signalling a strong pivot towards innovation-led growth. By inviting the private sector to lead in research, development and innovation, India is aiming not only to close its R&D gap but to emerge as a global competitor in strategic technologies. The next few years will reveal whether this financial commitment translates into tangible breakthroughs, commercialised research and global technological leadership.
Team- Intellex Strategic Consulting Private Limited
Follow us on LinkedIn:
https://www.linkedin.com/company/intellexcfo-com
https://www.linkedin.com/company/intellexconsulting
www.StartupStreets.com, www.GrowMoreLoans.com, www.GrowMoreFranchisees.com, www.intellexCFO.com, www.CreditMoneyFinance.com, www.StartupIndia.Club, www.EconomicLawsPractice.com
