Introduction
The Department of Science & Technology (DST) has launched the Research, Development, and Innovation (RDI) Scheme, approved by the Union Cabinet on July 1, 2025.
With a total outlay of ₹1 lakh crore, this transformative initiative aims to catalyze private sector participation in high-impact R&D.It aims to strengthen India’s capabilities in strategic technologies and promote technological self-reliance, aligning with the nation’s long-term innovation and Atmanirbhar Bharat vision.
Key Objectives of the RDI Scheme
- Encouraging Private Sector Involvement: Incentivize active participation from industry players in cutting-edge research and innovation.
- Promoting Strategic Technologies: Focus on mission-critical areas that are vital for national development and global competitiveness, including:
- Energy security and transition, and climate action;
- ‘Deep technologies’including quantum computing, robotics and space;
- Artificial intelligence and its applications to Indian problems including in agriculture, health, and education
- Biotechnology, biomanufacturing, synthetic biology, pharma, and medical devices;
- Digital economy including digital agriculture
- Fostering Self-Reliance and Economic Security: Support technologies where indigenization is essential for strategic or economic reasons, in line with the vision of Atmanirbharta.
- Ensure Flexibility in Sectoral Support: Allow support for any additional sectors or technologies deemed essential for public interest.
How the Scheme Works
Funding and Financial Support
- Total Budget: ₹1 lakh crore
- Modes of Financing:
- Long-term loan at low or nil interest rates.
- Equity infusion, especially in case of startups.
- Contributions to Deep-Tech Fund of Funds
- Exclusions: Grants and short-term loans are not supported
- Coverage: Financing can cover up to 50% of assessed project cost for transformative RDI projects at Technology Readiness Levels (TRLs) 4 and above; exceptions may be approved by the Empowered Group of Secretaries (EGoS)
Implementation Structure
- Special Purpose Fund (SPF): Being set up under the Anusandhan National Research Foundation (ANRF) to serve as the first-level custodian
- Second-Level Fund Managers (SLFMs):
- May include Alternate Investment Funds (AIFs), Development Finance Institutions (DFIs), Non-Banking Financial Companies (NBFCs), or Focused Research Organizations (FROs) such as the Technology Development Board (TDB), Biotechnology Industry Research Assistance Council (BIRAC), IIT Research Parks, or similar entities
Participation details
- Interested Second Level Fund Managers (SLFMs)— are invited to express their interest in partnering with this fund by writing to Dr Jyoti Sharma, Head, RDI Cell at sharma[dot]jyoti[at]nic[dot]in
- Existing NBFCs planning to establish AIFs are also encouraged to contact the Department of Science & Technology (DST) regarding potential participation.
- Note:Industry stakeholders seeking funding for projects under the RDI scheme are requested not to send proposals or emails directly to DST.
- All disbursements will be routed exclusively through the designated Second-Level Fund Managers (SLFMs) in due course through separate advertisement.
