India has launched the first open call under the Technology Development Board’s Research, Development and Innovation (RDI) Fund, marking a major push to finance indigenous technologies and support commercialisation of high-risk, high-impact innovations. The initiative, placed under the Anusandhan National Research Foundation (ANRF), is designed to move beyond conventional grant-based support and provide structured, long-term capital for technology development.
Key Features of RDI Fund
The RDI Fund has a total corpus of ₹1 lakh crore. It offers concessional financing at around 2–4 per cent interest, with repayment periods of up to 15 years and moratorium provisions. The scheme is intended to reduce financial risk for innovators while ensuring accountability. It also includes equity-linked and hybrid financing options.
Focus on Private Sector Innovation
The first call has received nearly 191 proposals, with most coming from the private sector. The fund is meant to address a long-standing gap in India’s innovation ecosystem by providing direct government-backed support to private enterprises. It is especially relevant as strategic sectors such as space and nuclear energy have opened up to private participation.
Project Selection and Funding Structure
The current call targets projects at Technology Readiness Level 4 and above. Priority areas include artificial intelligence, energy, and deep-tech. Funding of up to 50 per cent of project cost will be provided through Second Level Fund Managers in the form of loans, equity, or hybrid instruments. Matching contributions from companies or private investors are required. The scheme is collateral-free and does not require personal or corporate guarantees.
Approval Process and Policy Significance
Proposals will be assessed on scientific, technological, financial, and commercial merit. The approval process is expected to be completed within eight weeks. The RDI Fund was approved by the Union Cabinet in July 2025 and formally launched in November 2025 as part of India’s strategy to build indigenous technological capability and strengthen innovation-led growth.
Last Modified: April 27, 2026