The Indian government has launched an ambitious ₹1 trillion fund to stimulate research, development and innovation in the private sector, with a special focus on high-impact sunrise and strategic technologies including artificial intelligence, robotics, drones, energy transition, climate technologies, space tech, biotechnology, synthetic biology and digital infrastructure. The announcement was made by Department of Science and Technology Secretary Abhay Karandikar, who said the initiative is aimed at addressing India’s low private sector participation in high-risk R&D and accelerating technological self-reliance.
Karandikar explained that the scheme—approved by the Union Cabinet—is being finalised for rollout in the coming months. It will offer concessional loans, equity infusions, or blended instruments, with companies expected to contribute 50 percent of project costs. The rest will be supported by the fund, which is designed to offer long-tenor and low or zero-interest financing. This marks a significant departure from conventional funding channels that often deter private players from entering deep-tech and high-risk innovation areas.
The scheme, named the Research Development and Innovation (RDI) Scheme, aims to overcome structural constraints by offering growth and risk capital to the private sector, especially in areas critical to national economic security and technological sovereignty. It will support projects in higher stages of Technology Readiness Levels and facilitate technology acquisition of strategic importance. A key feature of the initiative includes setting up a Deep-Tech Fund of Funds, further amplifying capital access for breakthrough ventures.
The fund is also seen as a response to India’s heavy import dependence on critical technologies, particularly rare earth elements from China. Researchers are concurrently exploring alternatives, including rare-earth-free synchronous reluctance motors, to address strategic vulnerabilities in key industrial ecosystems.
The DST Secretary affirmed that the RDI Scheme will be inclusive, supporting large corporates, traditional industries, and emerging deep-tech start-ups. It aligns with the national ambition to make India a global hub for technology innovation and advanced manufacturing by creating a robust support ecosystem that incentivises risk-taking, innovation and cross-sectoral collaboration.
The scheme is expected to become a cornerstone in India’s next phase of economic transformation, where indigenous technology development becomes central to the country’s competitive advantage and resilience.
