The government has approved Rs 7,131 crore for the first group of 19 fund managers under the national Research, Development and Innovation (RDI) Scheme. This initiative targets deep-tech projects by requiring private investors to match state funding. The program aims to turn laboratory breakthroughs into market-ready products, with observers tracking the ability of these funds to successfully mobilize private capital.
The government has approved a commitment of Rs 7,131 crore to the first cohort of 19 fund managers under the national Research, Development and Innovation (RDI) Scheme. This decision was finalized by the Empowered Group of Secretaries during a session on October 8, 2026. The move is a significant step toward activating the larger Rs 1 lakh crore research corpus announced in November 2025, which is managed by the Anusandhan National Research Foundation.
The selection includes 14 Alternative Investment Funds and five Focused Research Organisations. These entities were chosen to manage capital that supports high-risk research projects at Technology Readiness Level 4 and above. In simple terms, this refers to technologies that have moved past basic laboratory experiments and are now ready for testing and prototype development. The objective is to help these projects reach a stage where they can be converted into industrial solutions or commercial products.
A key feature of this funding structure is the requirement for matching private capital. The government mandates that for every rupee provided by the Research, Development and Innovation Fund, the chosen managers must secure an equivalent amount of investment from private sources. This design is intended to double the total deployment pool and ensure that projects are rigorously vetted by market-oriented investors rather than relying solely on government grants. This approach aims to lower the burden on public finances while fostering a self-sustaining ecosystem for innovation.
The initiative is strategically focused on reducing India’s dependence on imported technology frameworks. By funneling resources into domestic deep-tech and emerging technologies, the government aims to build national sovereignty in critical sectors. The Anusandhan National Research Foundation is overseeing the administrative aspects to ensure the funds reach sectors that can scale effectively.
While the funding provides a strong push for research, the model involves inherent risks. Deep-tech and experimental research are characterized by high failure rates and long timelines before reaching commercial success. The success of this initiative will depend on the ability of the 19 selected fund managers to identify projects with viable potential and their success in mobilizing the required private capital. If these managers struggle to attract private investors, it could slow down the deployment of government funds. The foundation is currently preparing for subsequent application cycles to continue expanding the scope of the program.