At the inaugural session of the Emerging Science & Technology Innovation Conclave (ESTIC) 2025, Prime Minister Narendra Modi unveiled a major initiative: a ₹1 lakh crore Research, Development and Innovation (RDI) Fund aimed at strengthening private-sector investment in high-impact technologies such as artificial intelligence (AI) and deep technology.
A Big Push for Private Innovation
The RDI Fund is designed to encourage Indian businesses to invest more aggressively in R&D, narrowing the gap with global peers. The scheme will offer long-term, low-interest loans, equity investments and contributions into a Deep-Tech Fund of Fund advancing innovation beyond government laboratories and into private enterprise.
Strategic Focus Areas
At the three-day ESTIC event, participants are set to focus on 11 tech domains, including advanced materials, AI, quantum technologies, bio-manufacturing, semiconductors and energy transition. The government hopes that these thrust areas will spark breakthroughs in sectors vital for India’s future competitiveness.
Why it Matters
India has witnessed a rapid rise in startup activity and deep-tech funding, but private R&D spending still lags behind developed economies. The new fund signals a shift: from public-sector innovation to a ecosystem where industry, academia and government collaborate at scale. PM Modi emphasized that “capital is now being made available for high-risk and high-impact projects” that may not yield immediate returns but can transform India’s technological standing.
Implementation Details
The total outlay of ₹1 lakh crore will likely span multiple years. In FY 2025-26, an initial tranche of around ₹20,000 crore is expected. A variety of instruments from equity to concessional loans will be deployed, with careful tracking to ensure accountability and impact. The fund aims to raise private-sector spending intensity and create an innovation ecosystem that supports India’s ambition of becoming a global tech major.
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