Cabinet Approves ₹1 lakh crore RDI Scheme to Fuel Sunrise Sector Innovation

The RDI Scheme is designed to address key constraints in financing private R&D initiatives by offering long-term, low or zero-interest loans.

Arunima  PalBy Arunima Pal calendar 01 Jul 2025 Views icon2015 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Cabinet Approves ₹1 lakh crore RDI Scheme to Fuel Sunrise Sector Innovation

In a move to strengthen India's innovation and research landscape, the Union Cabinet approved the Research Development and Innovation (RDI) Scheme with a corpus of ₹1 lakh crore. The scheme aims to catalyze private sector investment in research, development, and innovation, especially in sunrise and strategic sectors critical for national economic and technological advancement.

The RDI Scheme is designed to address key constraints in financing private R&D initiatives by offering long-term, low or zero-interest loans. It seeks to provide growth and risk capital to foster cutting-edge innovation, accelerate technology adoption, and enhance competitiveness in sectors of strategic and economic significance.

Key Objectives of the RDI Scheme

  • Stimulate private sector-led R&D in sunrise domains and areas vital to self-reliance and economic security.

  • Finance transformative projects with higher Technology Readiness Levels (TRL).

  • Support acquisition of strategically important technologies.

  • Facilitate the creation of a Deep-Tech Fund of Funds (FoF).

The Department of Science and Technology (DST) will act as the nodal body for implementing the scheme. Strategic direction will be provided by the Governing Board of the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister. An Executive Council within the ANRF will formulate scheme guidelines and identify fund managers and eligible project categories, while an Empowered Group of Secretaries (EGoS) led by the Cabinet Secretary will monitor implementation and approve adjustments to the scheme.

The scheme introduces a two-tiered funding structure. At the first level, a Special Purpose Fund (SPF) will be created within ANRF to manage and allocate funds. These resources will then be distributed to second-level fund managers to finance R&D projects—primarily through concessional loans, and in select cases, equity funding for startups. Contributions to deep-tech or other innovation-focused funds may also be made under this framework.

By addressing the long-standing financing gap in India’s private R&D ecosystem, the RDI Scheme is expected to foster self-reliance, stimulate deep-tech innovation, and position India as a globally competitive innovation hub—aligning with the country’s long-term vision of Viksit Bharat by 2047.

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