Modi Launches ₹1 Trillion Fund to Boost R&D and Innovation

In an effort to promote private sector-led research and technology improvement throughout the nation, Prime Minister Narendra Modi announced a ₹1 trillion researches, development, and innovation (RDI) fund on Monday.

One of the government's key initiatives to institutionalize innovation finance was the announcement, which was made during the Emerging Science, Technology and Innovation Conclave (ESTIC) 2025.

The fund would have a two-tiered structure and the Department of Science and Technology (DST) will be the nodal ministry.

The Anusandhan National Research Foundation's Special Purpose Fund (SPF) will serve as the custodian at the first level. Instead of making direct investments in new businesses or startups, the SPF will transfer funds via a second tier of qualified fund managers.

Also Read: Odisha Launches Its First Semiconductor Plant in Bhubaneswar

These comprise focused research organizations (FROs) like the Technology Development Board (TDB), Biotechnology Industry Research Assistance Council (BIRAC), and IIT Research Parks, as well as alternative investment funds (AIFs), development finance institutions (DFIs), and non-banking financial companies (NBFCs).

Long-term, low-interest, or occasionally interest-free loans, equity infusions (particularly for startups), and contributions to the deeptech fund of funds are the various ways that the RDI fund will finance its operations. Short-term loans and grants are not supported by the program.

Artificial intelligence (AI), robotics, space technology, biotechnology, quantum computing, energy security and transition, and robotics are priority sectors.

The global order is witnessing a fundamental shift, and the pace of change is not liner but exponential, the prime minister said in his address. “For the first time, capital is being allocated specifically for high-risk, high-impact projects, ensuring support for ground-breaking endeavours.”