Government approves Rs. 1,00,000 crore (US$ 11.68 billion) Research Development and Innovation (RDI) scheme to boost private sector innovation.

The Union Cabinet has approved a Rs. 1,00,000 crore (US$ 11.68 billion) Research, Development and Innovation (RDI) Scheme aimed at boosting private-sector innovation in high-growth and strategic technology sectors. The scheme is designed to address gaps in private-sector Research and Development (R&D) investment by offering long-term loans at low or nil interest rates, as well as equity support. It will also fund the acquisition of critical technologies to strengthen India’s domestic capabilities in globally competitive areas such as artificial intelligence (AI), green technologies, and deep-tech innovation. This initiative follows the government’s vision to position India as a global innovation leader by enabling the commercialisation of research through robust financial backing.
The funding structure will operate at two levels. First, a Special Purpose Fund (SPF) under the Anusandhan National Research Foundation (ANRF) will manage the Rs. 1,00,000 crore (US$ 11.68 billion) corpus. Second, selected fund managers will allocate this capital to R&D projects via concessional loans or equity infusions, including through a Deep-Tech Fund of Funds. Announced in the Union Budget for FY25, the scheme has received Rs. 20,000 crore (US$ 2.34 billion) budgetary allocation to the Department of Science and Technology (DST). The DST budget has seen a tenfold rise from Rs. 2,777 crore (US$ 324.46 million) in 2014 to Rs. 28,509 crore (US$ 3.33 billion) in FY26. Gross expenditure on R&D has increased from Rs. 60,196 crore (US$ 7.03 billion) to Rs. 1,27,380 crore (US$ 14.88 billion) over the same period. This scheme is expected to accelerate private participation in innovation, enhance global competitiveness, and create a strong ecosystem for research-led economic growth.

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