PM Modi launches RDI Fund to spur private investment in research
- By IndiaStartupBuzz | November 5, 2025
PM Modi Launches ₹1 Lakh Crore RDI Fund to Boost Private Sector Research and Innovation in India
Prime Minister Narendra Modi inaugurated the Emerging Science, Technology and Innovation Conclave (ESTIC) 2025 at Bharat Mandapam, New Delhi, where he announced the launch of a landmark ₹1 lakh crore (approximately $12 billion) Research, Development and Innovation (RDI) Scheme Fund. This ambitious initiative aims to significantly enhance India’s private sector-led research and technological advancement, fostering a vibrant innovation ecosystem.
The fund is designed to support “high-risk, high-impact” projects, targeting areas such as energy security, quantum computing, artificial intelligence, robotics, space technology, and biotechnology. Unlike traditional grant models, the RDI Fund will provide long-term, low-interest or interest-free loans, equity infusions, and deep-tech fund-of-funds allocations, encouraging bold research endeavors with transformative potential.
Operated under a two-tier structure managed by the Department of Science and Technology, the fund will be custodied by the Special Purpose Fund under the Anusandhan National Research Foundation (ANRF) and channeled through professional fund managers including alternative investment funds, development finance institutions, and research organizations. This structure enables efficient capital deployment while ensuring expert oversight.
Prime Minister Modi emphasized that this is the first time capital is being made available explicitly for high-risk, high-impact projects, reflecting a paradigm shift from India being a technology consumer to becoming a pioneer in innovation. He highlighted India’s achievements including record-breaking vaccine development, the world’s largest vaccination drive, and increasing patent registrations, underscoring the country’s scientific progress.
The initiative also promotes ease of doing research, with reforms in financial rules, procurement policies, and regulatory frameworks aiming to accelerate the journey from prototype to market-ready innovation. The conclave gathered over 3,000 participants including scientists, academics, industry leaders, policymakers, and Nobel laureates to align efforts toward India’s vision of becoming a global science and technology hub.
Industry and startup leaders have welcomed the fund as a decisive step toward building India’s innovation capital framework, fostering long-term public-private collaboration, and empowering startups to take bigger risks in deep tech and frontier solutions.
In summary, PM Modi’s launch of the ₹1 lakh crore RDI Fund is a transformative move to fuel India’s research and innovation ecosystem by mobilizing private capital, supporting breakthrough projects, and positioning India as a global leader in science and technology innovation for decades to come.
