In a landmark move to strengthen India’s innovation and research ecosystem, the Union Cabinet has approved the Research Development and Innovation (RDI) Scheme with a corpus of Rs one lakh crore. The initiative aims to provide long-term, concessional financing to encourage private sector participation in strategic and sunrise sectors, enabling self-reliance and enhancing global competitiveness.

Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw stated that the scheme recognises the private sector's pivotal role in driving innovation and commercialising research. The Department of Science and Technology (DST) will act as the nodal agency for implementation. Key features include low or zero-interest long-tenure loans, risk capital support, and funding for higher Technology Readiness Level (TRL) projects. It also facilitates the creation of a Deep-Tech Fund of Funds to support cutting-edge innovation and startups.

The scheme will be governed by the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, with operational oversight from an Empowered Group of Secretaries (EGoS) led by the Cabinet Secretary. With a two-tiered funding mechanism, the Special Purpose Fund within ANRF will allocate resources to second-level fund managers who will finance transformative R&D initiatives across sectors critical to India’s economic and strategic future.