Prime Minister Narendra Modi has announced a ₹1 lakh crore Research, Development, and Innovation Fund to enhance India’s innovation ecosystem by accelerating private sector investment in research and development. The new Conclave was declared during the inaugural Emerging Science & Technology Innovation Conclave ESTIC 2025 in New Delhi on November 3, held in New Delhi.
A massive ₹1 lakh crore Fund has been created to incentivise the private sector through public financial investment only in high-risk but high-impact research, namely, research on the technological future, such as artificial intelligence, deep technology, energy, biotechnology, and medical devices. For the first time in India’s history, such significant public financial backing has been given to private-sector research and development, to realize Transforming India into a leading science and technology powerhouse by 2047.
The fund shall be managed by the Anusandhan National Research Foundation under the Department of Science and Technology. The fund shall have two levels, wherein the first level, a special-purpose fund, shall allocate capital not directly but through second-level fund managers of Alternative Investment Funds, Development Finance Institutions, and Non-Banking Financial Companies. The fund managers will recommend a list of projects based on their technical and financial viability, thereby creating a transparent and professional investment fund mechanism.
The PM said that the fund is dedicated to rapidly expanding the capacities of innovators and entrepreneurs and providing unimagined opportunities. The PMO added that India, which will be the world’s fastest-growing major economy, is carving out a unique image in innovation and technology development. The claim was substantiated by the country’s achievements in developing indigenous vaccines, having more than 6,000 deep-tech start-ups, and more than doubling R&D spending and tripling patent filings over the past ten years. The PMO said that the Government has made a course correction to allow ‘Ease of Doing Research’ by implementing financial and procurement reforms to cultivate a fast-developing ecosystem for science and innovation in India.
This proposed RDI is supported by a Government commitment to finance long-term, low-interest loans fully and to invest in risk capital, with a focus on significant and high-risk research activities. The investment amount is not capped, and large firms can only participate if they invest at least 50% of the project cost. The primary goal of this initiative is to close the gap in private-sector R&D investment, as it currently accounts for just 30-35% of total R&D spending in India, compared with approximately 70% in developed economies.
The launch of this fund also marks the start of the Anusandhan Research Foundation, which will help Indian universities and tech institutions conduct more research and generate new ideas. This will open up new opportunities for progress in both business and academia.
At the ESTIC 2025 event, visionaries, policymakers, innovators, scientists, and Nobel Prize winners from around the world gathered to discuss new technologies and India’s future innovation roadmap.
In short, the ₹1 lakh crore RDI Fund is a significant step forward for the Indian Government in encouraging private-sector-led research and innovation. This will help India stay ahead in deep technology and scientific progress over the next few decades, in line with the “Viksit Bharat 2047” vision.