PM Modi Launches Rs 1 Lakh Crore RDI Scheme to Boost Private Sector Innovation
Prime Minister Narendra Modi has officially launched the Research, Development, and Innovation (RDI) Scheme, a massive Rs 1 lakh crore fund aimed at transforming India’s research landscape. The initiative, first announced in the 2024-25 interim budget, provides long-term, low-interest financing to accelerate private sector innovation in emerging technologies.
Key Takeaways
- Rs 1 lakh crore allocated over six years for private sector R&D
- Rs 20,000 crore earmarked for FY 2025-26
- Offers long-term loans, equity, and deep-tech fund contributions
- No grants or short-term loans provided under the scheme
What is the RDI Scheme Fund?
The RDI Scheme provides long-term financing with extended tenors and minimal or zero interest rates specifically for private sector research and innovation projects. Finance Minister Nirmala Sitharaman initially announced this landmark initiative during the interim Budget presentation.
PM Modi launched the scheme at the Emerging Science, Technology, and Innovation Conclave 2025 (ESTIC 2025), emphasizing its role in encouraging private enterprises to scale up research activities in sunrise domains.
Funding Structure and Implementation
The massive Rs 1 lakh crore corpus will be distributed over a six-year period, with Rs 20,000 crore allocated specifically for the financial year 2025-2026. According to Union Minister Jitendra Singh, the scheme will focus exclusively on long-term financial instruments including low-interest loans, equity investments, and contributions to the Deep-Tech Fund of Funds.
Minister Singh clarified in a Rajya Sabha written reply on July 31, 2025, that the scheme explicitly excludes grants and short-term loan facilities.
Government’s Broader Research Push
During the launch, PM Modi highlighted the government’s focus on creating “Ease of Doing Research” and revealed that India’s research and development budget has doubled over the past decade. “Additionally, the number of registered patents has grown an impressive 17-fold. In the startup landscape, India has emerged as the third-largest ecosystem globally,” the Prime Minister stated.
He also noted a significant achievement in education diversity, with women comprising 43% of STEM education participants in India – a figure well above the global average.
About ESTIC 2025
The Emerging Science, Technology, and Innovation Conclave 2025 (November 3-5) serves as the platform for this landmark announcement. The event brings together academia, research institutions, industry leaders, and government representatives to discuss 11 critical thematic areas including Artificial Intelligence, Quantum Science, Space Technologies, Health & Medical Technologies, and Climate solutions.
