The Union Cabinet has approved the Research Development and Innovation (RDI) Scheme with a financial outlay of ₹1 lakh crore. Reportedly, the initiative is aimed at supporting private sector-led research, development, and innovation across strategic and emerging sectors.
The RDI Scheme will operate through a two-tier funding structure. A Special Purpose Fund (SPF) will be created under the Anusandhan National Research Foundation (ANRF), which will disburse funds to second-level managers such as AIFs, DFIs, and NBFCs. These will offer long-term loans at low or nil interest, and in some cases, equity support.
The scheme targets sunrise sectors including energy, defence, semiconductors, AI, quantum computing, and biotechnology. It is also designed to fund high TRL (Technology Readiness Level) projects and support the acquisition of critical technologies. A Deep-Tech Fund of Funds will also be facilitated.
The ANRF Governing Board, led by the Prime Minister, will steer the scheme. The Executive Council of ANRF will suggest guidelines, fund managers, and sectoral focus. An Empowered Group of Secretaries (EGoS), chaired by the Cabinet Secretary, will handle changes, project approvals, and periodic reviews. DST will act as the nodal department.
In parallel, the Cabinet has cleared the ELI Scheme with an allocation of ₹1.07 lakh crore to generate 35 million jobs between August 2025 and July 2027. It includes wage subsidies for first-time employees and incentives for employers hiring additional staff, especially in the manufacturing sector.
India’s R&D spending has remained under 0.7% of GDP for decades. The private sector contributes around 36%, compared to 70% in the US and 79% in China. The RDI scheme intends to address funding gaps and strengthen India's R&D capacity through structured support.
Read More: Union Cabinet Approved Employment Linked Incentive Scheme with 3.5 Crore Jobs in Focus!
The scheme is to increase private participation in research and offer targeted financial support to critical projects, while the ELI aims to boost employment generation over the next 2 years.
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Published on: Jul 2, 2025, 12:32 PM IST
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