₹1 Lakh Crore Innovation Push: Govt Bets Big on Private R&D
Modi government offers interest-free unsecured loans to turbocharge deep-tech innovation
- ₹1 lakh crore interest-free RDI Fund launched to fuel private-sector innovation
- ₹20,000 crore allocated in FY 2025-26 under ANRF framework
- Govt to offer unsecured long-term loans for high-risk deep-tech projects
- Focus on AI, semiconductors, quantum, biotech, climate and space sectors
GG News Bureau
New Delhi, 27th Dec: In a historic first for India’s innovation ecosystem, the Modi government has rolled out an unprecedented ₹1 lakh crore Research, Development and Innovation (RDI) Fund to provide unsecured, interest-free loans to private companies and start-ups, marking a paradigm shift in how India finances high-risk scientific innovation.
The fund, approved by the Union Cabinet on July 1 and anchored under the Anusandhan National Research Foundation (ANRF), aims to bridge the critical “valley of death” between laboratory prototypes and commercially viable products. An initial allocation of ₹20,000 crore has been earmarked for FY 2025-26.
Prime Minister Narendra Modi, launching the fund at the Emerging Science, Technology and Innovation Conclave (ESTIC) 2025, said the government is creating a modern innovation ecosystem by making high-risk capital accessible for the first time.
“This ₹1 lakh crore is for you — to expand your capabilities and open new opportunities. For the first time, capital is being made available for high-risk, high-impact projects,” the Prime Minister said.
Union Minister Jitendra Singh, who led the nationwide industry outreach, called the initiative a “comradeship compact” between the government and private innovators. “This is not charity. We are enabling you to kick-start innovation and then take over in a big way,” he said.
The RDI Fund will finance sunrise sectors including quantum computing, semiconductors, artificial intelligence, biotechnology, pharmaceuticals, clean energy, space technology and digital economy projects. Unlike conventional grants, it will provide patient capital through long-term unsecured loans and selective equity financing for start-ups working at Technology Readiness Level (TRL)-4 and above.
The fund will operate through professional fund managers including Alternate Investment Funds (AIFs), Development Finance Institutions (DFIs), NBFCs, the Technology Development Board (TDB) and BIRAC, ensuring transparent and market-oriented deployment.
Principal Scientific Adviser Ajay Sood said the mission is to move deep-tech innovations from prototypes to market. “The RDI Fund is the fuel to cross the valley of death,” he said.
India’s innovation metrics already show sharp improvement — ranking 38th in the Global Innovation Index 2025 and third globally in research publications. Officials believe the RDI Fund could catapult India into the league of top innovation economies.
If implemented efficiently, the ₹1 lakh crore push could unlock massive private capital, redefine India’s research landscape and accelerate the nation’s journey towards Viksit Bharat.
