India’s ambition to become a global innovation hub in clean energy, battery technology, and electric vehicles is gaining momentum. A recent news report confirms that the government’s ₹1 trillion Research Development and Innovation (RDI) fund—first announced in the July FY25 budget—will be operational in the coming months.
Sectors like energy storage, advanced materials, and electric mobility are expected to benefit from this initiative, with a strong emphasis on private sector-led research and development.
According to a news report, the ₹1 trillion RDI fund will become functional within the next 2 to 3 months. This fund was originally announced by Union Finance Minister Nirmala Sitharaman in the FY25 budget, with an initial corpus of ₹20,000 crore already allocated to the Department of Science and Technology (DST).
Unlike the Anusandhan National Research Foundation (ANRF), which focuses on funding academic and institutional research, the RDI fund is aimed exclusively at private sector innovation. This includes support for large corporations, industries, and start-ups working on transformative R&D projects.
As part of this initiative, DST is preparing to launch Deep Tech Fund 1.0. The objective is to enable India to achieve strategic autonomy in sectors that are critical for future economic resilience. These include clean energy technologies, electric vehicles, and advanced materials.
Secretary of DST, Abhay Karandikar, clarified during the Battery Summit organised by the World Resources Institute (WRI) India that the fund will support not just early-stage start-ups but also established corporates engaged in high-impact research. The goal is to develop products that can drive India’s technological self-reliance and enhance competitiveness on a global scale.
India’s commitment to innovation is also reflected in its rising research budget. DST’s allocation has increased significantly from ₹2,777 crore in 2014 to ₹28,509 crore in FY26. Gross expenditure on research and development has more than doubled from ₹60,196 crore to ₹1,27,380 crore during the same period.
This financial commitment underscores the importance of home-grown innovation in navigating global supply chain uncertainties, especially in battery materials like lithium, cobalt, and nickel, resources in which India lacks adequate reserves.
To complement innovation in battery technology, the Automotive Research Association of India (ARAI) is setting up an advanced battery lab. As reported, this facility is part of a broader ₹100 crore investment to build modern testing labs and infrastructure nationwide in 2025. ARAI is also expanding its Mobility Research Centre at Takwe and has already established a Centre of Excellence for Green Mobility in Pune.
However, concerns have been raised about whether the new lab will be sufficient to meet the country’s full spectrum of battery testing needs.
Read More: Jupiter Wagons EV Partnership with Pickup!
At the Battery Summit, WRI India released a report titled Development of Data Frameworks for Battery Circularity in India. The report calls for a unified national data framework to enhance transparency, traceability, and collaboration in the battery ecosystem.
Such a framework is vital for collecting and sharing digital records on battery life cycles, material composition, and carbon footprints. This enables stakeholders, such as suppliers, manufacturers, and automotive companies, to assess risks, improve sourcing, and adopt sustainable practices.
Additionally, providing accessible information to consumers about a battery’s environmental impact and state of health can drive more responsible purchasing and recycling behaviour.
If India successfully implements this ambitious ₹1 trillion innovation plan, it could pave the way for self-reliance in critical technologies and create a ripple effect across sectors such as electric mobility, clean energy, and advanced materials.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 29, 2025, 2:06 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
