Context:
The Union Cabinet has cleared the Research Development and Innovation (RDI) Scheme with a corpus of ₹1 lakh crore, aiming to transform India’s research and innovation ecosystem, especially in sectors of economic and strategic importance.
Key Objectives of the RDI Scheme
- Promote private sector investment in R&D, particularly in strategic and economically critical sectors
- Support projects at higher Technology Readiness Levels (TRLs) for faster commercialization
- Facilitate technology acquisition where domestic capacity is lacking
- Establish a Deep-Tech Fund of Funds to nurture startups and frontier innovation
Institutional Framework
- Governing Board (under Anusandhan National Research Foundation, chaired by the PM): Strategic oversight
- Executive Council (ANRF): Identifies projects, finalizes fund managers
- Empowered Group of Secretaries (EGoS): Reviews and implements scheme, chaired by Cabinet Secretary
- Nodal Department: Department of Science and Technology (DST)
Funding Structure: Two-Tier Mechanism
- Corpus: ₹1 lakh crore via 50-year interest-free loan to ANRF
- Special Purpose Fund (SPF): Managed under ANRF; acts as central custodian of funds
- Second-Level Fund Managers:
- Selected by ANRF
- Disburse concessional long-term loans or equity to R&D/startup projects
- Evaluate projects and offer funding through equity or debt
Why It’s Needed
- India’s GERD (Gross Expenditure on R&D) was ₹1.27 lakh crore in 2021 (only 0.64% of GDP)
- Economic Survey 2024–25 highlighted this as insufficient compared to global peers
- Private sector R&D spending remains significantly low due to financial and risk constraints
