Cabinet approves ₹1 lakh crore RDI scheme to boost private sector research
New Delhi: The Union Cabinet approved the Research, Development and Innovation scheme to promote greater private sector participation in research and development, the government told the Lok Sabha.
In a written reply, Union Minister of State for Science and Technology Dr. Jitendra Singh said the RDI scheme would have a corpus of ₹1 lakh crore over six years. The programme aims to support long-term and high-risk research projects with high economic impact.
He said the government would provide financial support mainly through long-tenor, low-interest financing. In most cases, this funding would remain unsecured. In addition, the scheme would consider equity financing, especially for startups.
The minister said the Union Budget for 2025–26 allocated ₹20,000 crore for implementing the programme. The scheme will also contribute to Deep Tech Funds of Fund to support advanced technologies.
RDI scheme to focus on sunrise and deep tech sectors
Dr. Singh said the scheme would follow a two-tier funding structure. Under this model, second-level fund managers will implement projects through approved institutions.
These managers may include alternate investment funds, development finance institutions, non-banking finance companies, and focused research organisations. Institutions such as the Technology Development Board, BIRAC and IIT research parks may also participate.
The minister said the scheme would prioritise sunrise sectors. These include energy transition, climate action, deep technologies such as quantum computing and space, and artificial intelligence applications in agriculture, health and education.
In addition, the programme will support biotechnology, pharmaceuticals, medical devices and the digital economy. It will also back technologies critical for strategic and economic security.
The scheme will adopt a demand-driven and outcome-oriented approach. Authorities will select projects based on merit, strategic relevance and economic potential. Most projects will begin at Technology Readiness Level 4 or above.
Dr. Singh said the government would monitor progress through institutional mechanisms. He added that the initiative aims to strengthen domestic capabilities, cut import dependence and improve global competitiveness.
