Prime Minister Narendra Modi Unveils ₹1 Trillion RDI Fund
Prime Minister Narendra Modi introduced a ₹1 trillion Research, Development, and Innovation (RDI) fund aimed at fostering private sector-led research and technological advancements across India. This announcement was made during the inauguration of the Emerging Science, Technology and Innovation Conclave (ESTIC) 2025, marking a significant step towards institutionalizing innovation financing.
Fund Management and Structure
- Department of Science and Technology (DST): Acts as the nodal ministry for the fund.
- Two-Tier Structure:
- Level I: A Special Purpose Fund (SPF) under the Anusandhan National Research Foundation will be the principal custodian.
- Level II: Capital will be deployed via professional managers including Alternate Investment Funds (AIFs), Development Finance Institutions (DFIs), Non-Banking Financial Companies (NBFCs), and Focused Research Organizations (FROs) like the Technology Development Board (TDB) and Biotechnology Industry Research Assistance Council (BIRAC).
- Financing Modes: Long-tenure, low or zero-interest loans, equity infusions for startups, and allocations to the deeptech fund of funds. Notably, the fund does not support grants or short-term lending.
Priority Areas
- Energy security and transition
- Quantum computing
- Robotics
- Space technology
- Biotechnology
- Artificial Intelligence (AI)
Impact and Industry Reactions
The fund has been lauded by the startup community as a catalyst and forward-looking initiative that will build India’s innovation capital framework and foster public-private collaboration in research and technology. Notable reactions include:
- Rajat Tandon: Views it as laying the foundation for public-private collaboration, emphasizing long-term, risk-taking patient capital.
- Manu Iyer: Highlights the fund's role in bridging the gap between early-stage research and commercial deployment, empowering startups, and creating a collaborative ecosystem.
- Cdr Navneet Kaushik: Praises the inclusivity of the fund, stating its support for both startups and established industries.
- Kushal Bhagia: Stresses the fund's potential to address India's underinvestment in R&D.
- Ashwin Raguraman: Views the initiative as a step towards making India a nation of creators, attracting global capital.
Market Impact
According to Tracxn, investments in India’s deep-tech sector have risen significantly, with $1.52 billion invested in 2024 across 456 rounds, and year-to-date investments for 2025 standing at $1.44 billion across 248 rounds. These investments highlight the growing interest and support for deep-tech innovation in India.
