 Fund to de-risk futuristic projects.){kind=link}
In a historic move to strengthen India’s innovation and research ecosystem, Prime Minister Narendra Modi launched the ₹1 lakh crore Research, Development & Innovation (RDI) Fund on November 3, 2025. The initiative is designed to de-risk futuristic projects, empower high-impact innovators, and accelerate India’s journey toward becoming a global hub for technology-driven progress under the vision of Viksit Bharat.
“For decades, India has been rich in ideas but limited in support systems,” PM Modi said during the launch. “This ₹1 lakh crore is for you — to increase your capabilities and open new opportunities. India is no longer just a consumer but a pioneer in technology-driven transformation.”
A Bold Shift in India’s Innovation Financing
The RDI Fund introduces a two-tier structure managed by the Department of Science and Technology (DST). At the first level, a Special Purpose Fund (SPF) will operate under the Anusandhan National Research Foundation (ANRF), channeling capital through Alternate Investment Funds (AIFs), Development Finance Institutions (DFIs), and Non-Banking Financial Companies (NBFCs).
These intermediaries will identify and support promising projects via independent committees comprising experts in finance, business, and technology.
Unlike traditional grant-based schemes, the RDI Fund operates as a risk-tolerant investment model, targeting areas such as deep tech, semiconductors, defence, space, biotech, and advanced manufacturing. The initiative aims to nurture India’s high-risk, high-reward innovators — a group often overlooked by conventional funding structures.
Empowering the Next Generation of Innovators
Industry experts have hailed the RDI Fund as a game-changing intervention for India’s deep-tech and startup ecosystems. “The RDI Fund bridges the critical gap between idea and innovation,” said Manu Iyer, General Partner at Bluehill.VC. “By providing long-term patient capital, it empowers startups to take bold risks and accelerate commercialization, particularly in areas like quantum computing, AI, and biotechnology.”
The Fund’s design also allows it to collaborate with complementary programs such as SIDBI’s Fund of Funds and the Space-Tech Fund, ensuring a connected innovation pipeline from early research to market-ready deployment.
Also read: GeM and Madhya Pradesh Strengthen Procurement Partnership
India’s Innovation Vision for 2047
The Prime Minister also unveiled a vision document and coffee table book highlighting India’s scientific achievements and the road ahead for technology and R&D. The initiative reinforces the government’s commitment to fostering “ease of doing research,” bridging academia-industry collaborations, and promoting indigenous technology leadership.
By infusing risk-tolerant capital into high-impact sectors, the RDI Fund signals India’s readiness to lead the global innovation race — transforming the nation from a technology adopter into a technology creator.