To boost the country's innovation capabilities, Prime Minister Narendra Modi launched the Rs. 1 lakh crore Research, Development, and Innovation (RDI) Scheme at the Emerging Science, Technology, and Innovation Conclave (ESTIC) 2025 in Bharat Mandapam, New Delhi. The effort would encourage and promote high-risk, high-impact research projects, accelerating the country's transition to a worldwide scientific and technology leader.

RDI Scheme: Accelerating the Journey from "Lab to Market"

Over the next six years, the fund aspires to alter India's research and innovation landscape by cultivating a strong private sector-driven R&D ecosystem. On July 1, 2025, the Department of Science and Technology (DST) introduced the Research, Development, and Innovation (RDI) Scheme to encourage private-sector participation in high-impact research and development. The step intends to strengthen India's strategic technology capabilities and promote the country's self-reliance on its technologies, as well as a shared vision of long-term national innovation and the Atmanirbhar Bharat goal.

Objectives of the RDI Scheme Fund

• Encourage private sector investment in R&D to drive innovation in key industries including green energy, electric vehicles, AI, and biotech, which are vital for economic stability and self-reliance.

 • Offer long-term financial solutions for high-risk innovative initiatives with limited cash availability.

 • Support transformative projects to establish India as a worldwide innovator in crucial technology.

This effort is the first time public funds have been systematically distributed to stimulate private sector R&D, with the government facilitating finance availability for initiatives that were previously deemed too risky. The funds will be administered in a two-tiered structure, with the Anusandhan National Research Foundation (ANRF) managing the Special Purpose Fund (SPF) and second-tier fund managers including venture capital funds, alternative investment funds, development finance institutions, and focused research organizations.

Funding Mechanisms and Implementation

• The fund will provide money to startups and early-stage technology companies through long-term concessional loans with low or no interest rates, as well as equity contributions. The strategy excludes grants and short-term loans.

• ANRF's special purpose fund is the custodian, allocating monies to second-level fund managers such alternate investment funds, development finance institutions, and research-focused organizations. These managers subsequently distribute funds to approved projects.

25,000 New Atal Tinkering Labs

To foster grassroots innovation, the government plans to massively expand the Atal Tinkering Labs (ATLs), which are school-based innovation centers administered by the Atal Innovation Mission.

 • The ATL laboratories offer children hands-on experience in robotics, AI, and design thinking, developing problem-solving abilities and a scientific mindset from a young age.

• The pipeline aims to increase the number of ATL labs from 10,000 to 25,000 nationwide.

10,000 PM Research Fellowships

10,000 PM Research Fellowships (PMRFs) will be granted to young researchers and PhD scholars over the next five years as financial and institutional support to help them pursue advanced scientific work, particularly in strategic and emerging areas.

Strategic and Emerging Sectors

• Artificial Intelligence.
• Green hydrogen
• Quantum computing
• Deep sea exploration
• Semiconductor development

The fellowships are part of a bigger ambition to build a strong knowledge economy founded on cutting-edge innovation.

Conclusion

Prime Minister Narendra Modi's introduction of the ₹1 Lakh crore RDI Scheme is a significant step towards promoting private sector-led research and innovation in India. The strategic investment effort intends to unlock potential in deep technology, artificial intelligence, quantum computing, biotechnology, advanced manufacturing, and green technologies, opening up new opportunities for India's economic and technological leadership on a global scale. This visionary move is expected to strengthen India's innovation ecosystem by closing financing gaps and encouraging high-risk, high-reward research ventures that will shape the country's future for decades.