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In a move aimed at accelerating India’s innovation journey, the Union cabinet, chaired by Prime Minister Narendra Modi, approved the Research, Development and Innovation (RDI) Scheme on Tuesday, with a total outlay of Rs 1 lakh crore.Announcing the decision, Union I&B minister Ashwini Vaishnaw said the initiative will serve as a gamechanger in strengthening the country’s private R&D ecosystem.The RDI Scheme is designed to provide long-term financing or refinancing at low or nil interest rates to stimulate private sector investment in high-impact research and innovation. It aims to bridge the critical funding gaps faced by private players, especially in sunrise and strategic sectors that are vital for India’s economic security, self-reliance and global competitiveness.Key objectives of the RDI scheme:

The scheme will be anchored by the Anusandhan National Research Foundation (ANRF). The Governing Board of ANRF, headed by the Prime Minister, will provide overall strategic direction. The Executive Council (EC) of ANRF will frame the operational guidelines and approve fund managers and project types, while an Empowered Group of Secretaries (EGoS) led by the Cabinet Secretary will oversee performance reviews and approve changes as required. The department of science and technology (DST) will serve as the nodal implementing agency.Funding under the RDI Scheme will follow a two-tier model. A Special Purpose Fund (SPF) will be set up within ANRF to manage the corpus. Funds will then be channelled through selected second-level fund managers, who will provide long-term concessional loans or equity support, particularly for start-ups and deep-tech ventures.As per the government, the RDI Scheme is a key step towards building a robust, self-reliant innovation ecosystem that supports India’s goal of becoming a developed nation by 2047 under the vision of Viksit Bharat.