On November 3, 2025, during the Emerging Science & Technology Innovation Conclave in New Delhi, the Hon’ble Prime Minister Narendra Modi will launch a pioneering Rs 1 lakh crore Research, Development, and Innovation Scheme Fund, an innovation push that constitutes the largest configuration of innovation-finance in India’s past and future. Such a fund is intended to establish a robust, private-sector-determined R&D environment in the nation, stimulating high-end research in areas such as artificial intelligence, deep tech, biotech, medtech, energy transformation, among others.
The Fund initiative will help close the existing private-sector R&D funding gap, which stands at 30-35% of total R&D expenditure in India, when it should reach 70% as in advanced economies. The scheme will provide long-term, low-interest loans or equity funding, enabling patient capital investments, with returns expected in 10 to 15 years, not in 2 to 5 years as with venture capital or bank lending. This way, the new program will enable the “valley of death”- prone technologies to overcome the “valley of death” that lies between prototype and market value.
The fund administration will be based on the two-tier framework. The first level is responsible for managing the central corpus through a Special Purpose Fund within Anusandhan National Research Foundation. The second-level fund managers are responsible for project financing and include venture capital funds, alternative investment funds, and institutions such as IITs and the Technology Development Board. Both startups and large corporations are eligible, with no upper limit on investment. However, large companies need to co-invest 50 % of the project cost.
From November 3 to 5, the ESTIC 2025 conclave will bring together over 3,000 participants from academia, research institutions, industry, and Government. Nobel laureates, distinguished scientists, innovators, and policymakers will attend. The theme-based discussion will schedule 11 thematic priority areas: advanced materials; AI; bio-manufacturing; digital communications; semiconductor manufacturing; energy and environment; health technologies; quantum science; and space technologies. This event will provide a unique platform for collaboration and accelerate innovation.
Finance Minister Nirmala Sitharaman first announced the Rs 1 lakh crore innovation fund in the 2024 budget. She then announced that Rs 20,000 crore would be allocated to this fund, with work beginning in early 2025. This initiative not only aims to boost cutting-edge R&D investment but also to build a private-sector-driven, sustainable, and internationally competitive innovation ecosystem in India.
In short, this groundbreaking RDI plan, led by PM Modi, is expected to help India become a global hub for innovation by significantly increasing private-sector investment in scientific research and game-changing technologies across several key areas.