Image Credit: Ministry of Railways
Cabinet Approves ₹1 Lakh Cr R&D Scheme for Sunrise Sectors
The Union Cabinet has approved a ₹1 lakh crore Research, Development and Innovation (RDI) scheme to catalyse India’s private sector investment in emerging technologies and strategically critical sectors. The landmark initiative, unveiled on July 1, aims to close the persistent funding gap between breakthrough research and commercially scalable solutions.
RDI Scheme
The scheme will provide a 50-year interest-free loan through the Anusandhan National Research Foundation (ANRF) to promote innovation across clean energy, artificial intelligence, biotechnology, quantum computing, space tech, robotics, and digital agriculture. It also extends support to sectors vital to national security and economic sovereignty.
Funds will be disbursed through a special purpose vehicle managed by ANRF, using second-tier fund managers to evaluate and back high-potential projects. A Governing Board chaired by the Prime Minister will provide strategic oversight, while implementation responsibilities rest with the Department of Science & Technology.
Private Sector-Led Innovation
The scheme marks a major policy shift by focusing on enabling private enterprise to lead India’s innovation story. Despite a growing economy, India’s research spending has remained at just 0.64% of GDP. With the global norm for private R&D contribution ranging from 57% to 79%, the government aims to bring Indian industry into alignment through capital support, risk mitigation, and ecosystem development.
By addressing the “valley of death”—the stage where innovations often fail due to lack of funding—the RDI scheme hopes to enable transformative technologies to move from labs to markets.
Deep-Tech Fund of Funds
A dedicated Deep-Tech Fund of Funds will also be launched to strengthen India’s competitiveness in next-gen technologies. Professional fund managers will assess proposals based on technological readiness, strategic impact, and potential for scale. The scheme seeks to attract global capital and strengthen India’s tech startup pipeline, especially in hardware and industrial R&D.
Strategic and Economic Impact
The initiative complements ongoing reforms such as the Production Linked Incentive (PLI) schemes, which have already attracted large-scale investment and created employment across manufacturing and tech sectors. With the RDI scheme now approved, the government aims to create a seamless innovation pathway from early research to market deployment.
