The Indian government has approved a ₹1 trillion scheme to boost research, development, and innovation in new and upcoming sectors. The goal is to support technology growth, encourage private sector involvement, and help India become more self-reliant and competitive globally by 2047.
In a significant move to strengthen India’s innovation and technology ecosystem, the Union Cabinet has approved a ₹1 trillion scheme aimed at supporting research, development, and innovation (RDI) in emerging and future-focused sectors. The initiative is designed to encourage private sector involvement, promote tech adoption, and build a foundation for a self-reliant and globally competitive India by 2047.
The ₹1 lakh crore fund will be provided as a 50-year interest-free loan to the Anusandhan National Research Foundation (ANRF). This amount will act as a base to attract additional private investment and multiply the overall impact. The funding will be used to promote R&D in key sectors including deep-tech, fintech, and other cutting-edge areas.
The new RDI Scheme addresses a long-standing issue in India’s innovation landscape — the lack of affordable, long-term financing for private sector-led R&D. With this scheme, the government hopes to fill that gap by offering long-tenure loans with little or no interest, making it easier for companies to invest in high-risk, high-reward innovation projects.
Focus on sunrise and strategic sectors
The scheme is specifically targeted at “sunrise sectors” — industries with high growth potential that are crucial for India’s future economy. These could include areas like clean energy, space tech, quantum computing, biotech, AI, and robotics, among others. The focus is not just on innovation but also on strengthening India’s economic and strategic capabilities.
It will also support projects with higher levels of technological readiness and help acquire critical or strategically important technologies from abroad when needed.
The scheme will operate through a two-tier funding model:
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Special Purpose Fund (SPF): This will be housed within the ANRF and will act as the primary custodian of funds.
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Second-Level Fund Managers: The SPF will distribute funds to various second-level fund managers who will then provide loans or equity support to R&D projects, startups, and enterprises. These managers will have the flexibility to choose appropriate funding instruments based on project needs — from low-interest loans to equity investment in high-potential startups.
Additionally, a deep-tech fund of funds (FoF) will be set up or supported under this scheme to further strengthen investments in emerging technologies.
Key governance bodies
The scheme will be overseen by multiple layers of governance:
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The Governing Board of ANRF, chaired by the Prime Minister, will offer overall strategic direction.
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An Executive Council will approve guidelines, decide on eligible sectors and projects, and recommend suitable fund managers.
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An Empowered Group of Secretaries (EGoS), headed by the Cabinet Secretary, will be responsible for periodic review, necessary changes, and performance evaluation.
The Department of Science and Technology will be the nodal department responsible for day-to-day implementation of the scheme.
A key objective of the RDI Scheme is to bring the private sector into the heart of India’s R&D journey. While public sector investments in R&D have grown steadily, private sector contribution has lagged behind. This scheme seeks to fix that by making innovation funding more accessible, less risky, and more rewarding for businesses.
By providing low-cost, long-term funding, the government hopes to encourage private enterprises — big and small — to scale up R&D efforts, commercialise new ideas, and bring innovations to market faster.
Towards Viksit Bharat 2047
Overall, the RDI Scheme is expected to play a pivotal role in achieving the vision of Viksit Bharat (Developed India) by 2047. It promises to build a stronger domestic R&D base, boost tech-enabled productivity in manufacturing, and create a more resilient, knowledge-driven economy.
With the right execution, this ₹1 lakh crore push could transform India’s innovation landscape and help the country take a global lead in several strategic technologies.
