PM Modi launches Rs 1 lakh crore RDI fund to boost private sector-led R&D ecosystem in India

Prime Minister Narendra Modi on Monday unveiled the Rs 1 lakh crore Research, Development and Innovation (RDI) Fund to boost private sector-led research and development (R&D) ecosystem in India.

The announcement came during the inaugural session of the first-ever Emerging Science, Technology and Innovation Conclave (ESTIC 2025) at Bharat Mandapam in New Delhi.

The RDI Fund, anchored by the Department of Science and Technology (DST), will operate through a two-tier structure, with a Special Purpose Fund housed within the Anusandhan National Research Foundation (ANRF) serving as the custodian of the Rs 1 lakh crore corpus.

Instead of investing directly in startups or industries, the Fund will channel capital through professional fund managers, including Alternative Investment Funds (AIFs), Development Finance Institutions (DFIs), and Non-Banking Finance Companies (NBFCs). These second-level managers will recommend support through independent investment committees comprising experts from financial, business, and technical domains.

Launching the initiative, Modi said the Fund represents a transformative shift in India’s approach to research capital. “For the first time, capital is being made available for high-risk and high-impact projects,” he said, underscoring the government’s effort to “promote research and development in the private sector” and make India a pioneer in technology-led innovation.

Highlighting India’s progress, Modi noted that the country’s R&D expenditure has doubled over the past decade, the number of registered patents has surged seventeen-fold, and India now ranks as the world’s third-largest startup ecosystem. Over 6,000 deeptech startups are currently working in frontier areas such as clean energy, advanced materials, and semiconductors, he added, noting the country’s bio-economy has expanded from $10 billion in 2014 to over $140 billion today.