Tue Jul 01 15:32:39 UTC 2025: **Summary:**

The Indian Union Cabinet has approved a ₹1-lakh crore (approximately $12 billion USD) Research Development and Innovation (RDI) scheme to incentivize private sector investment in basic research. This scheme, initially announced in the 2024 interim budget, aims to foster innovation and technological advancement in India, bringing the country closer to the private sector funded research levels of technologically advanced nations. The scheme features a two-tiered funding mechanism, channeling funds through a Special Purpose Fund (SPF) within the Anusandhan National Research Foundation (ANRF) to various fund managers offering concessional loans and equity financing, particularly for startups. Funding will be targeted towards projects at Technological Readiness Level 4 (TRL-4) in areas like energy, deep tech, AI, biotechnology, and digital economy.

**News Article:**

**India Launches ₹1 Lakh Crore Fund to Boost Private Sector Research**

**New Delhi, July 1, 2025:** In a significant move to bolster innovation and technological advancement, the Union Cabinet today approved a ₹1-lakh crore (approximately $12 billion USD) Research Development and Innovation (RDI) scheme. The initiative aims to incentivize private sector investment in basic research, shifting India closer to a model where private enterprise plays a larger role in funding scientific exploration.

Finance Minister Nirmala Sitharaman initially unveiled the plan in her 2024 interim budget speech. The Ministry of Science and Technology will oversee the scheme, supported by an additional ₹20,000 crore allocation in its 2025-26 budget.

The RDI scheme will operate through a two-tiered funding system. A Special Purpose Fund (SPF) will be established within the Anusandhan National Research Foundation (ANRF), serving as the custodian of the funds. This SPF will then allocate funds to various fund managers, primarily through long-term concessional loans, with the possibility of equity financing, particularly for startups.

“This scheme is designed to overcome the funding constraints faced by the private sector and provide growth and risk capital to sunrise and strategic sectors,” stated a Science Ministry press release. The ANRF, an independent body, will oversee the allocation of funds for basic research and incentivize private sector participation.

Minister for Information Technology Ashwini Vaishnaw clarified that funding would primarily target projects at Technological Readiness Level 4 (TRL-4), projects demonstrating market potential but facing significant financial risk. Key areas of investment include energy security, deep tech (quantum computing, robotics, space), artificial intelligence, biotechnology, the digital economy, and technologies critical for national security and self-reliance.

This ambitious scheme signals India’s commitment to fostering a vibrant research ecosystem and becoming a global leader in technological innovation.

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