Cabinet approves Rs 1 trillion under RDI Scheme to boost private R&D

The union cabinet has approved a Rs 1 trillion corpus under the Research Development and Innovation Scheme to drive private sector investments in strategic and high-growth areas such as deep tech, artificial intelligence (AI) and green technologies. The initiative is designed to close critical funding gaps in private R&D by offering long-term, low-cost capital and growth funding to sunrise sectors. The scheme will also support the acquisition of technologies deemed strategically important, enhancing India’s domestic capabilities in sectors of global relevance and competition. By backing innovation through accessible financing, the government aims to build a robust ecosystem for cutting-edge research and indigenous development. Further, the funding structure will operate in two layers. At the first level, a special purpose fund will be set up under the Anusandhan National Research Foundation to manage the Rs 1 trillion corpus. Meanwhile, at the second level, designated fund managers will channel funds into specific R&D projects, either as long-tenor, low- or no-interest loans, or through equity investments in start-ups.