Why in the news?

  • Prime Minister  launched Research Development and Innovation (RDI) Scheme Fund at the Emerging Science and Technology Innovation Conclave 2025.

Research, Development, and Innovation (RDI) Scheme Fund

  • What is it?
    • The RDI Scheme is a financial support initiative by the central government, with a corpus of ₹1 lakh crore (≈ US $11.5-12 billion). 
    • It targets research, development and innovation (RDI) in the private sector, particularly in sunrise and strategic sectors such as AI, deep-tech, biotechnology, clean energy, space, semiconductors, medical devices etc.
  • Objectives
    • Encourage private sector investment in R&D and innovation in strategic/sunrise domains.
    • Finance transformative projects at higher Technology Readiness Levels (ie, moving from lab to market) and support acquisition of critical technologies.
    • Facilitate the creation of a Deep-Tech Fund of Funds (FoF) to back deep-tech startups/ventures.
    • Strengthen India’s technological self-reliance (reducing dependence on foreign tech) and enhance global competitiveness.
  • Implementation Framework:
    • Nodal Department: Department of Science and Technology (DST) is the nodal implementing agency.
    • Governing Board: Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, provides overall strategic direction.
    • The Executive Council of ANRF will approve guidelines, identify sectors and recommend 2nd-level fund managers.
    • Funding mechanism: Two-tier structure:
      • A Special Purpose Fund (SPF) under ANRF as first level custodian.
      • Second-level fund managers (Alternate Investment Funds, DFIs, NBFCs, research organisations) receive concessional loans/equity from SPF to deploy to projects.
    • Financial support modes: Long-term loans at low or nil interest, equity infusion (especially for startups), contributions to fund-of-funds. Grants and short-term loans are excluded in the primary design.
  • Significance
    • Boost to private-sector R&D: By offering long-tenor, low-interest financing, the scheme addresses a persistent funding gap in India’s private R&D ecosystem.
    • Deep-tech & strategic edge: Focus on sunrise/strategic sectors helps India move from being technology-user to technology-creator, reducing import dependence.
    • Commercialisation thrust: Emphasis on higher TRLs ensures that research is oriented towards application and market, thus bridging the lab-to-market gap.
    • Global competitiveness & self-reliance: Strengthening home-grown innovation enhances India’s standing in global tech supply-chains and supports national security.
    • Financial innovation in R&D funding: Use of debt, equity and fund-of-funds marks a departure from typical grant-only models.