Research Development and Innovation (RDI) Scheme
The RDI Scheme, recently approved by the Union cabinet, is designed to encourage industries to enhance research, development, and innovation in strategic and emerging sectors.
- The scheme offers ₹1 lakh crore as risk capital, which is not linked to specific outcomes.
- It emphasizes areas such as energy transition, biotechnology, and artificial intelligence.
- A notable feature is the ‘Deep Tech’ fund, aimed at acquiring transformative technologies, which is expected to attract private investment in strategic areas.
- The success of the scheme will be measured by its ability to create an innovation ecosystem, though outcomes may vary across different sectors.
Employment Subsidy Scheme
This scheme is justified by its potential benefits in connecting the target group to unsubsidized employment, with long-term effects on employment opportunities.
- It aims to support work experience and income, enhancing long-term job prospects beyond the scheme's duration.
- There are secondary benefits, such as the growth of small enterprises, which are primary job creators in India.
- The scheme has a clear outcome: the number of additional jobs created.
- Official projections of job creation are considerably higher than those seen in the formal economy.
- The timing within the business cycle is crucial, and the subsidy may need to extend beyond its intended period, especially before elections.
Overall Impact
Both schemes signal India's commitment to upskill its workforce and enhance labor productivity.
- They complement targeted Production Linked Incentives (PLIs) for select industries.
- The government is encouraging manufacturing to move up the value chain.
- For India to become a global manufacturing hub, it must lead the next wave of strategic innovation.
- Industries need to grow faster than the broader economy to ensure equitable development and reverse the trend of jobless growth.
- Investment in research and skilling is crucial for leveraging opportunities in sunrise industries.
