Research Development and Innovation (RDI) Scheme

Context: The Indian government approved the Research Development and Innovation (RDI) Scheme to bolster India’s research and innovation ecosystem.

About Research Development and Innovation (RDI) Scheme

The Research Development and Innovation (RDI) Scheme, sanctioned by the Union Cabinet on July 1, 2025, is a revolutionary program with a corpus of ₹1 lakh crore (₹100,000 crore) to drive research and innovation in the private sector in sunrise and strategic areas such as AI, biotechnology, quantum computing, defence technology, and green energy. The RDI Scheme is designed to spur high-TRL (Technology Readiness Level) projects, facilitate technology acquisition, and advance global competitiveness and strategic autonomy of India.

• Corpus: ₹1 Lakh Crore
• Nodal Ministry: Department of Science and Technology (DST)

Objectives

• Boost Private Sector RDI: Encourage investments in sunrise sectors, strategic technologies, and sectors relevant to self-reliance and economic security.
• Finance High-TRL Projects: Support R&D projects at higher Technology Readiness Levels (TRL).
• Acquire Critical Technologies: Enable acquisition of strategic technologies important for national interests.
• Establish Deep-Tech FoF: Facilitate a Deep-Tech Fund of Funds for startups and innovation-led enterprises.

Two-tiered System Funding Mechanism

• Special Purpose Fund (SPF) under ANRF → custodian of funds.
• 2nd-Level Fund Managers → disburse funds via:
  • Long-term concessional loans
  • Equity investments (esp. for startups)
  • FoF contributions (e.g. Deep-Tech FoF)

Significance

• Bridges the funding gap in private R&D.
• Promotes technology-led economic growth.
• Aims to make India globally competitive in innovation.
• Accelerates India’s vision to achieve 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070.

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