India has unveiled a ₹1 lakh crore Research, Development and Innovation (RDI) scheme to drive home-grown technology and build a stronger scientific ecosystem. Announced in the FY26 Budget, the initiative will offer long-term, low- or zero-interest funding through a two-tier structure overseen by the Anusandhan National Research Foundation, with a focus on deep-tech and strategic sectors. Priority areas include critical minerals, green energy, semiconductors, biotechnology, and quantum research.
India’s expanding start-up base, surge in patent filings, and high female participation in STEM are its key advantages. The plan also emphasizes talent development by expanding Atal Tinkering Labs and awarding 10,000 PM Research Fellowships.
Prime Minister Narendra Modi on Monday (November 03, 2025) unveiled the ₹1 lakh crore Research, Development and Innovation (RDI) scheme aimed at strengthening India’s science and technology ecosystem and promoting product development based on indigenous technologies.
Framing the initiative within India’s broader national vision, he reaffirmed the country’s commitment to science and research with the slogan “Jai Vigyan, Jai Anusandhan,” complementing “Jai Jawan, Jai Kisan.” He launched the Research, Development and Innovation (RDI) Fund at the first Emerging Science, Technology and Innovation Conclave (ESTIC) 2025 held at Bharat Mandapam, New Delhi, a platform uniting policymakers, innovators, and global leaders to drive the Viksit Bharat 2047 vision.
Announced in the Union Budget for FY26, the scheme marks a historic shift by channeling capital support into private-sector research for the first time. Modi also highlighted the establishment of the Anusandhan National Research Foundation, designed to uplift the research ecosystem in universities and drive high-risk, high-impact innovation.
The Prime Minister stressed that India is focused on building a modern innovation ecosystem, supported by reforms in financial systems, procurement rules, regulations, and supply-chain frameworks to accelerate the lab-to-market pipeline. These steps, he noted, are essential as the world undergoes rapid technological transformation.
The scheme carries has a total outlay of ₹1 lakh crore spread over six years, with ₹20,000 crore earmarked for FY 2025–26 and financed through the Consolidated Fund of India. It will extend long-term low- or zero-interest loans, equity support, and contributions to Deep-Tech Fund of Funds. Notably, it does not include grants or short-term loans, as per a Ministry of Science and Technology release dated July 31, 2025.
The Department of Science and Technology (DST) will serve as the nodal agency for the RDI Fund, which will function through a two-tier financing framework.
In the first tier, a Special Purpose Fund (SPF) will be set up within the Anusandhan National Research Foundation (ANRF) to manage the ₹1 lakh crore corpus. Rather than investing directly in industries or startups, the Fund will route capital to second-tier fund managers, which may include Alternative Investment Funds (AIFs), Development Finance Institutions (DFIs), Non-Banking Financial Companies (NBFCs), and other eligible entities.
Second-tier fund managers will propose projects for support through investment committees made up of financial, business, and technical experts, operating independently and at arm’s length from the government.
Showcasing India’s progress, PM Modi pointed out that the nation’s R&D expenditure has doubled over the past decade while patent applications have risen nearly 17 times. India has also emerged as the world’s third-largest startup ecosystem, with more than 6,000 deep-tech startups driving advancements in clean energy, advanced materials, biotechnology, and other cutting-edge areas. The bio-economy, he added, has expanded from US$10 billion in 2014 to US$140 billion today.
Prime Minister Modi highlighted strong momentum in strategic sectors, including semiconductors, green hydrogen, quantum computing, deep-sea research, and critical minerals. Emphasizing inclusive innovation, he celebrated the rise in patent filings by women from fewer than 100 annually to over 5,000. India also boasts 43% female participation in STEM programs—exceeding the global average.
To nurture future innovators, the government plans to set up 25,000 additional Atal Tinkering Labs, expanding the existing network of 10,000 labs that engage one crore students. Over the next five years, 10,000 Prime Minister’s Research Fellowships will also be awarded.
Notably, during the year 2024, India invested roughly US$ 18 billion in R&D—far behind China’s US$ 450 billion and even trailing Israel’s US$ 25 billion. According to experts, to secure a leading position in advanced and strategic technologies, India should aim to boost R&D spending to about US$ 200 billion, or nearly 3% of its projected GDP, by 2035.
Speaking on responsible technology, PM Modi underlined the ethical development of artificial intelligence under the ₹10,000 crore India AI Mission and announced the Global AI Summit in February 2026. Calling for self-reliance in critical sectors, he stressed innovations in biofortified crops, affordable clean energy storage, and genomic mapping.
Highlighting India’s technological progress, PM Modi said the country has transitioned from being just a technology consumer to emerging as a frontrunner in driving tech-based transformation, exemplified by its successful development of COVID-19 vaccines. He also pointed out that women currently make up about 43% of STEM students in India—higher than the global average—and that annual patent applications filed by women have surged from fewer than 100 ten years ago to over 5,000 at present.
PM Modi further revealed that India will host the Global AI Summit in February 2026, emphasizing the country’s role in shaping a global framework for ethical and human-focused AI, backed by investments exceeding ₹10,000 crore under the India AI Mission. He concluded by expressing optimism that the Emerging Science, Technology and Innovation Conclave 2025 will play a pivotal role in advancing India’s path toward becoming a developed, innovation-led nation.
Read more:
India’s reforms moment in science and technology
Vigyan Dhara: A Catalyst for India’s Scientific Progress
FAQs:
1. What is the Research, Development and Innovation (RDI) scheme?
The RDI scheme is a ₹1 lakh crore initiative launched by the Government of India to strengthen the country’s science, technology, and innovation ecosystem. It aims to support high-risk, high-impact research and foster indigenous product development, especially in deep-tech sectors.
2. How will the RDI Fund support innovators and industry?
The scheme will provide long-term low- or zero-interest loans, equity investments, and contributions to Deep-Tech Fund of Funds. It will not extend grants or short-term loans. Funding will flow through accredited fund managers such as AIFs, DFIs, and NBFCs.
3. Who will administer the RDI scheme?
The Department of Science and Technology (DST) is the nodal ministry. A Special Purpose Fund within the Anusandhan National Research Foundation (ANRF) will manage the corpus and channel money through second-tier fund managers who operate independently of the government.
4. What other initiatives were announced along with the RDI scheme?
The Prime Minister announced 25,000 new Atal Tinkering Labs, 10,000 additional PM Research Fellowships, and upcoming hosting of the Global AI Summit in 2026. He also emphasized ethical AI development under the India AI Mission with investments over ₹10,000 crore.
5. What impact is the government expecting from the scheme?
The scheme is expected to accelerate India’s transition to a high-innovation economy, boost deep-tech startups, foster university-led research, and strengthen self-reliance in strategic technologies such as semiconductors, green hydrogen, AI, biotechnology, and quantum technologies.
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