DST launches ₹1 Lakh Crore RDI Scheme to Boost Private Sector R&D
The Department of Science & Technology (DST), Government of India, has officially launched the Research, Development, and Innovation (RDI) Scheme, approved by the Union Cabinet on July 1, 2025.
With an unprecedented outlay of ₹1 lakh crore, this transformative initiative is designed to catalyze private sector participation in high-impact R&D, strengthen India’s strategic technological capabilities, and promote Atmanirbhar Bharat through innovation-led growth.
Key Objectives of the RDI Scheme
- Encouraging Private Sector Involvement
- Incentivize active participation from industry players in cutting-edge research and innovation.
- Promoting Strategic Technologies
- Focus on mission-critical areas vital for India’s long-term development and global competitiveness, including:
- Energy security & transition, and climate action
- Deep technologies – quantum computing, robotics, and space
- Artificial intelligence for Indian applications in agriculture, health, and education
- Biotechnology & biomanufacturing – synthetic biology, pharma, medical devices
- Digital economy – including digital agriculture
- Focus on mission-critical areas vital for India’s long-term development and global competitiveness, including:
- Fostering Self-Reliance & Economic Security
- Prioritize technologies where indigenization is essential for strategic or economic reasons.
- Flexibility in Sectoral Support
- Enable funding for additional sectors or technologies in public interest as identified by experts.
How the Scheme Works
Funding & Financial Support
- Total Budget: ₹1 lakh crore
- Modes of Financing:
- Long-term loans at low or nil interest rates
- Equity infusion (particularly for startups)
- Contributions to Deep-Tech Fund of Funds
- Exclusions: Grants and short-term loans will not be supported
- Coverage: Financing can cover up to 50% of project cost for transformative RDI projects at Technology Readiness Level (TRL) 4+
- Exceptions may be approved by the Empowered Group of Secretaries (EGoS)
Implementation Structure
- Special Purpose Fund (SPF):
- Being set up under the Anusandhan National Research Foundation (ANRF) as the first-level custodian.
- Second-Level Fund Managers (SLFMs):
- May include:
- Alternate Investment Funds (AIFs)
- Development Finance Institutions (DFIs)
- Non-Banking Financial Companies (NBFCs)
- Focused Research Organizations (FROs) such as TDB, BIRAC, IIT Research Parks, or similar entities.
- May include:
Participation & Contact
- Second-Level Fund Managers (SLFMs):
- Invited to express interest in partnering with the RDI fund by writing to:
📧 Dr. Jyoti Sharma, Head, RDI Cell — sharma[dot]jyoti[at]nic[dot]in
- Invited to express interest in partnering with the RDI fund by writing to:
- NBFCs establishing AIFs:
- Encouraged to contact DST regarding participation.
⚠️ Note for Industry Stakeholders:
- Proposals or funding requests should not be sent directly to DST.
- All disbursements will be routed only through designated SLFMs, which will be announced separately.
Why it Matters
The RDI Scheme represents one of India’s boldest commitments to innovation-driven growth, aiming to:
- Reduce reliance on foreign technologies
- Empower private sector R&D
- Strengthen India’s global leadership in strategic and deep technologies
- Create a robust innovation ecosystem for startups, industry, and academia
Website: https://dst.gov.in/rdi-scheme/research-development-and-innovation-rdi-cell
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