Prime Minister Narendra Modi is set to launch a ₹1 lakh crore Research, Development and Innovation (RDI) fund aimed at transforming India into a global hub for deep-tech and artificial intelligence (AI) research. The initiative seeks to strengthen private-sector participation in high-end innovation by providing long-term, low or zero-interest loans rather than traditional grants. The scheme will be administered by the Anusandhan National Research Foundation (ANRF) under the Department of Science and Technology (DST), marking one of India’s largest investments in research and technological advancement to date.
The RDI fund will primarily target industries working in critical and emerging technologies such as AI, quantum computing, semiconductors, biotechnology, and advanced materials. The government’s focus is to bridge the gap between early-stage innovation and commercialization by providing what it calls “patient capital.” This form of funding allows research-intensive projects to mature without the short-term financial pressures often associated with venture capital. In its first phase, the government has allocated ₹20,000 crore for the fiscal year 2025–26, with deployment expected to span the next six to seven years.
Officials and experts believe that the scheme could significantly boost India’s innovation output and global competitiveness. Currently, India invests around 0.8% of its GDP in research and development—far below countries like the United States and China. By mobilizing private investment through government-backed financing, the RDI fund aims to stimulate collaboration between academia, startups, and industry, thereby creating an ecosystem that supports homegrown innovation in frontier technologies. This move also aligns with India’s broader vision of achieving technological self-reliance and leadership in the AI and deep-tech sectors.
However, the success of the fund will depend on efficient execution, transparent governance, and active participation from the private sector. Analysts caution that previous R&D programs have faced under-utilization of funds and bureaucratic delays. Ensuring timely disbursement, effective project monitoring, and measurable outcomes will be critical for translating this ambitious initiative into tangible results. If implemented well, the RDI scheme could not only strengthen India’s research capabilities but also generate employment, attract global partnerships, and position India as a key innovator in the AI-driven global economy.
