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India Puts Its Money Where the Mind Is: ₹1 Lakh Crore for R&D Revolution

Swarnadwip Nath Published Aug 02, 2025, 06:02 AM Updated Sep 17, 2026, 09:08 PM

In a significant stride towards empowering India’s innovation ecosystem, Science and Technology Minister Dr. Jitendra Singh announced the launch of a dedicated Rs 1 lakh crore Research, Development and Innovation (RDI) fund aimed at boosting private sector R&D activities. This massive f...

Key Highlights of the Rs 1 Lakh Crore RDI Fund

The total corpus of Rs 1 lakh crore is earmarked to be spent over the next six years, with a substantial allocation of Rs 20,000 crore for the fiscal year 2025–26.

The fund targets private sector entities including corporates, startups, and venture funds focusing on deep technologies and sunrise sectors.

It aims to create strategic autonomy in critical technology areas such as artificial intelligence (AI), quantum computing, biotechnology, clean energy, and digital economy.

The Department of Science & Technology (DST) is the nodal ministry responsible for overseeing and driving fund disbursement, supported by the Anusandhan National Research Foundation (ANRF) as the Level 1 Fund Custodian.

Implementation will be managed through approved Second-Level Fund Managers like Alternate Investment Funds, Development Finance Institutions, NBFCs, and focused research organizations including BIRAC and IIT Research Parks.

The funding model emphasizes long-term financing facilities such as low or zero-interest loans, equity funding, and contributions to a Deep-Tech Fund of Funds; it does not include grant funding or short-term loans.

Financing is available only for projects with a technology readiness level (TRL) of 4 or higher that contribute to acquiring strategically important technologies.

Public investment under this scheme can finance up to 50% of a project’s assessed cost, with the balance to be provided by the project proponents.

Special provisions allow relaxation of financing limits for exceptional projects, pending approval from the empowered group of secretaries (EGoS).

Government’s Vision and Strategic Importance

The Rs 1 lakh crore RDI fund reflects the government’s commitment to fostering an innovation-driven economy and reducing dependency on foreign technologies. Minister Jitendra Singh emphasized this initiative as a key pillar supporting the broader vision of “Viksit Bharat” (Developed India) by 2047. The fund supports emerging sectors directly linked to India’s strategic and economic security, including nuclear energy, space technology, geospatial data, and health biotechnology.

The initiative also promotes collaborative research and synergy between academia, private industry, and startups through increased academic exchanges and co-guiding of postgraduate research to accelerate knowledge transfer and innovation capacity building.

Enhanced Focus on Deep-Tech and Sunrise Sectors

The RDI fund is designed to power India’s “deep-tech” ecosystem, encompassing futuristic technologies that require substantial R&D investments and have long gestation periods. Focus sectors include:

Artificial Intelligence and Machine Learning

Quantum Computing and Communication

Biotechnology and Genomics

Clean and Renewable Energy Technologies, including Small Modular Reactors (SMRs)

Digital Economy and Cybersecurity

Advanced Materials and Manufacturing Technologies

Impact on Private Sector and Innovation Ecosystem

The fund is expected to catalyze private investment in R&D which historically lags behind global benchmarks. By providing a robust financial mechanism that mitigates risk through public-private partnership and long-term capital, the scheme aims to:

Encourage startups and SMEs to pursue high-risk, high-reward technological innovations

Bolster the manufacturing of critical components and indigenous tech product development

Facilitate India’s positioning as a global hub for technology research and commercialization

Boost job creation in high-skill sectors and promote export potential of homegrown innovations

Financial Governance and Oversight

The Rs 1 lakh crore fund will be rigorously governed through multiple oversight bodies including the Governing Board of ANRF, the Empowered Group of Secretaries, Executive Council, and Investment Committees. This ensures transparent project evaluation, fund allocation, performance reviews, and alignment with national priorities.

Expected Outcomes and Future Outlook

The government projects that the market influenced by this fund and private sector R&D could expand to Rs 2 lakh crore by 2028.

The fund's structure paves the way for India to achieve self-reliance in high-tech sectors crucial to economic and national security.

Enhanced innovation capacity is expected to have multiplier effects across allied sectors, including healthcare, environment, and digital services.

The scheme complements other government initiatives such as the National Geospatial Mission, Bio E3 policy, and Mission Mausam, creating a coordinated landscape for scientific advancement.

This landmark investment delivers a clear message about India's unwavering commitment to fostering an innovation ecosystem powered by the private sector, with a sharp focus on strategic technologies that will shape the country’s future prosperity and sovereignty.

Sources: Press Information Bureau (PIB), Economic Times

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