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New Delhi, July 31, 2025 — The Union Cabinet has given its nod to a landmark Research, Development and Innovation (RDI) Scheme, aiming to bolster India’s position in science, technology, and strategic sectors. Announced by Dr. Jitendra Singh, Union Minister of State (Independent Charge) for Science and Technology, the scheme is set to inject ₹1 lakh crore over six years, with an initial allocation of ₹20,000 crore for Fiscal Year 2025–26.
Strategic Focus Areas
The RDI Scheme identifies technology sectors of critical importance, including:
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Energy security
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Climate action
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Deep technologies such as quantum computing, artificial intelligence, biotechnology
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Digital economy
Additional strategically and economically vital sectors may be incorporated with the approval of the Empowered Group of Secretaries (EGoS).
Innovative Financing Model
Support under the scheme is geared toward projects that have attained a Technology Readiness Level (TRL) of 4 or above, ensuring maturity and scalability. The financing model emphasizes:
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Long-term loans (at low or no interest)
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Equity investments
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Contributions to the Deep-Tech Fund of Funds
Notably, grant funding and short-term loans are not part of the scheme. Government financing is capped at 50% of a project’s assessed cost; exceptions require EGoS sanction. The remainder must come from the project’s proponent.
Implementation Structure
A Special Purpose Fund (SPF) managed by the Anusandhan National Research Foundation (ANRF) will oversee the funds, with Second-Level Fund Managers (including Alternate Investment Funds, Development Finance Institutions, NBFCs, and organizations such as BIRAC and IIT Research Parks) selected to implement the scheme. Governance and approval responsibilities are distributed among the Governing Board of ANRF, the EGoS, the Executive Council, and Investment Committees.
Oversight rests with the Department of Science & Technology, the scheme’s nodal agency, to ensure that only projects with proven technical feasibility and significant strategic value receive support.
Exclusions
The scheme will not fund:
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Next-generation R&D labs
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RDI activities for government entities
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Short-term loans
Government Statement
“This new thrust on research and innovation will secure India’s place in future technology leadership,” Dr. Jitendra Singh told the Lok Sabha in a written reply.
Disclaimer: This article is based on official information provided by the Press Information Bureau and statements made in Parliament as of July 31, 2025. Further details or updates may emerge as the scheme is implemented.
