India is set to begin funding under the Research, Development and Innovation (RDI) Fund by the end of January, marking the operational start of a ₹1 lakh crore initiative to promote private sector-led research. The scheme is designed to support high-risk, high-impact projects and strengthen collaboration among laboratories, startups and industry. It is also intended to improve the translation of research into commercially viable outcomes.
Key Features of the RDI Fund
The RDI Fund was approved by the Union Cabinet on 1 July last year and formally launched on 3 November 2025. It aims to catalyse private investment in research and innovation. The focus is on projects that can move beyond early-stage development and create measurable industrial and societal impact. The scheme supports sectors linked to national development priorities.
First Fund Managers Approved
The Department of Science and Technology has approved the Technology Development Board (TDB) and the Biotechnology Industry Research Assistance Council (BIRAC) as the first Second-Level Fund Managers. TDB will handle projects across RDI sunrise and strategic sectors. BIRAC will manage biotechnology and allied areas. Both are expected to issue their first calls for proposals by the end of January 2026.
Initial Allocation and Eligibility
In the first quarter, TDB and BIRAC will each receive ₹2,000 crore, taking the initial disbursement to ₹4,000 crore. The scheme will support innovation-driven ventures that have crossed Technology Readiness Level 4. This indicates that the projects have moved beyond basic validation and are ready for further development and scaling.
Broader Implementation Framework
Other entities, including Alternate Investment Funds, Development Finance Institutions, Non-Banking Finance Companies and Focused Research Organisations, may also become Second-Level Fund Managers. They have until 31 January 2026 to submit applications. The government has also revised implementation guidelines to improve transparency and ease of participation. The emphasis is on timely execution, stronger inter-ministerial coordination and better outcomes from public investment in research.
Last Modified: April 27, 2026