Research Development and Innovation (RDI) Scheme Approved by the Cabinet

Scheme for Research, Development, and Innovation (RDI)

Main Goals:

Encourage investment from the private sector in RDI, particularly in domains of economic stability and strategic importance;

Aid innovative initiatives at elevated Technology Readiness Levels (TRLs);

Facilitate the acquisition of technologies that are essential or hold significant strategic value;

Enable the establishment of a Deep-Tech Fund of Funds (FoF) aimed at backing deep-tech innovations and startups.

Institutional Structure:

Governing Board (Anusandhan National Research Foundation (ANRF): Led by the Prime Minister, offers comprehensive strategic guidance.

Executive Council (ANRF): Endorses program guidelines, selects projects and fund managers.

Empowered Group of Secretaries (EGoS): Led by the Cabinet Secretary, supervises execution, evaluates results, and authorizes modifications.

Nodal Department: Department of Technology and Science (DTS).

Two-Tiered Funding Mechanism within the Program:

The government will provide ₹1 lakh crore to the Anusandhan National Research Foundation (ANRF) as a loan for 50 years without any interest.

Special Purpose Fund (SPF): Established through ANRF, it serves as the steward of funds. SPF resources will be distributed among various second-tier fund managers.

Second-Level Fund Managers: Obtain favorable long-term loans or equity from SPF to finance R&D initiatives.

The financing for R&D initiatives by the second-level fund managers would typically be provided as a long-term loan with low or no interest rates.

They will assess and choose specific projects for financing, utilizing both equity and debt options.

Types of Funding: Long-term subsidized loans (main method).

Equity funding (particularly for new ventures).

Investments in Deep-Tech Fund of Funds.

Requirement for the Program

The Economic Survey for 2024-25 highlighted that while India's gross expenditure on research and development (GERD) rose from around ₹60,196 crore in 2011 to nearly ₹127,381 crore in 2021, it remains only 0.64% of the GDP.

The survey highlighted that this continues to be “inadequate and is still low compared to numerous countries.

Importance

• focusses on the financial limitations of private research and development in India.
• encourages innovation in fields like artificial intelligence, semiconductors, and clean energy.
• supports self-reliance and creates a strong innovation ecosystem, which is in line with the goal of Viksit Bharat@2047.