Cabinet Approves RDI Scheme to Boost Innovation

On 1st July 2025, the Union Cabinet approved the Research Development and Innovation (RDI) Scheme with a total outlay of Rs. 1 lakh crore, aiming to strengthen India’s research ecosystem and increase private sector participation in high-end innovation.

Key Points

Focus on Strategic Technologies: The RDI Scheme targets strategic and sunrise sectors, offering long-term low or zero-interest financing to private firms for research and technology adoption.
Deep-Tech Fund of Funds: The scheme will support the creation of a Deep-Tech Fund to back startups and ventures focused on cutting-edge technologies.
Two-Tier Funding Mechanism:
- A Special Purpose Fund (SPF) will be set up within the Anusandhan National Research Foundation (ANRF).
- SPF will channel funds to second-level fund managers offering concessional loans or equity support.
Governance Structure:

The ANRF Governing Board, chaired by the Prime Minister, will set strategic direction.
The Executive Council will approve guidelines and identify projects and fund managers.
An Empowered Group of Secretaries, led by the Cabinet Secretary, will oversee execution.

Nodal Department: The Department of Science and Technology will be the primary agency responsible for implementing the scheme.
Goals: The RDI Scheme aims to overcome private sector funding barriers, improve global competitiveness, ensure economic security, and advance India’s self-reliance in critical technologies.