In a significant move to enhance India’s innovation landscape, the Union Cabinet sanctioned the Research Development and Innovation (RDI) Scheme with an outlay of ₹1 lakh crore on July 1, 2025. This scheme aims to foster private sector investment in impactful research and development, focusing on emerging sectors with long-term financing support at low or zero interest rates, steered by the Anusandhan National Research Foundation (ANRF).
Key Objectives of the RDI Scheme
- Promote private sector-led R&D and innovation in AI, semiconductors, clean energy, etc.
- Encourage investment in technology acquisition and commercialization.
- Finance high Technology Readiness Level (TRL) projects.
- Support strategic sectors vital for national security and economic competitiveness.
- Establish a Deep-Tech Fund of Funds to drive long-term innovation.
Two-Tier Structure
Tier 1 – Special Purpose Fund (SPF)
- Central custodian: The SPF within ANRF will manage and allocate funds to second-level fund managers.
Tier 2 – 2nd-Level Fund Managers
- Channeling loans: Second-level fund managers will provide concessional long-term loans to private entities engaged in transformative R&D projects.
- Low or nil interest: Loans will carry minimal interest rates to reduce risks and foster innovation.
Institutional Oversight
- Strategic direction: The ANRF Governing Board, led by the Prime Minister, will offer guidance and supervision.
- Collaborative model: The scheme emphasizes a partnership between the government and industry to advance national innovation objectives.
Significance of the Scheme
- Growth capital: Provides growth and risk capital for private enterprises, especially startups and MSMEs in the tech sector.
- Global innovation hub: Aims to position India as a prominent global innovation hub.
- Technology self-reliance: Strengthens technology self-sufficiency and supports initiatives like Make in India and Atmanirbhar Bharat.
- Alignment with national goals: Aligns with India’s objectives under the National Deep-Tech Strategy and Vision 2047.
Key Takeaways for Competitive Exams
- Union Cabinet approved the ₹1 Lakh Crore RDI Scheme to boost private sector innovation.
- The scheme aims to promote private sector-led R&D in emerging sectors and strategic domains.
- Two-tier structure includes a Special Purpose Fund and 2nd-level Fund Managers for fund allocation.
- The RDI Scheme emphasizes collaboration between the government and industry to drive innovation.
- It supports technology self-reliance and aligns with India’s national innovation objectives.
