Research Development and Innovation Scheme
About
- The Department of Science & Technology (DST) launched the Research, Development, and Innovation (RDI) Scheme in 2025 to catalyze a private sector-driven R&D ecosystem.
- Launched with a total outlay of ₹1 lakh crore, this initiative aims to strengthen India’s capabilities in strategic technologies and promote technological self-reliance.
Did you know?
- India’s Gross Expenditure on R&D (GERD) as a percentage of GDP stands at a modest 0.64 per cent, substantially below the global average.
- Leading economies, such as the US (3.48 per cent), China (2.43 per cent), and South Korea (4.91 per cent), invest significantly more.
- Low expenditure in R&D is partly due to low investment in R&D from the business sector, which accounts for only 41 per cent of the total expenditure.
- This is in stark contrast to countries such as China (77 per cent), United States (75 per cent), and South Korea (79 per cent), where business sector contributions to R&D are significantly higher.
Objectives
- The key objectives of the scheme are:
- Encourage the private sector to scale up research, development, and innovation (RDI) in sunrise domains (industries with high growth potential) and in other sectors relevant for economic security, strategic purpose, and self-reliance;
- Finance transformative projects at higher levels of technology readiness for faster translation from concept to market;
- Support acquisition of technologies which are critical or of high strategic importance; and
- Facilitate setting up of a Deep-Tech Fund of Funds to support deep technology (rooted in the advances of cutting-edge science & technology) start-ups.
- The Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overarching strategic direction to the RDI Scheme.
Anusandhan National Research Foundation:
- ANRF is a statutory body established in 2004 under the Anusandhan National Research Foundation (ANRF) 2023 Act.
- ANRF replaced the Science and Engineering Research Board (SERB), established in 2008.
- The ANRF aims to seed, grow and promote research and development (R&D) and foster a culture of research and innovation throughout India’s universities, colleges, research institutions, and R&D laboratories.
- The Department of Science and Technology is the administrative Department of ANRF which is governed by a Governing Board consisting of eminent researchers and professionals across disciplines.
- The Prime Minister is the ex-officio President of the Board and the Union Minister of Science & Technology & Union Minister of Education are its ex-officio Vice-Presidents.
Funding
- The RDI Scheme aims to provide long-term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment.
- The RDI Scheme will have a two-tiered funding mechanism.
- At the first level, there will be a Special Purpose Fund (SPF) established within the ANRF, which will serve as the custodian of the ₹1 lakh crore corpus.
- The fund will not directly invest in industries and startups but will channel capital to second-level fund managers, who can be Alternative Investment Funds (AIF), Development Finance Institutions (DFI), Non-banking Finance Companies (NBFCs), among others.