Research Development and Innovation (RDI) Scheme Fund

Syllabus: GS3/ Science and Technology

Context

• PM Modi launched the ₹1 Lakh Crore Research, Development and Innovation (RDI) Scheme Fund while inaugurating the Emerging Science, Technology and Innovation Conclave (ESTIC) 2025 in New Delhi. 

About the scheme

• The scheme has an outlay of Rs 1 lakh crore over 6 years, with Rs 20,000 crore allocated for FY 2025–26, funded from the Consolidated Fund of India. 
• The Department of Science and Technology (DST) will serve as the nodal department for implementation of the RDI Scheme.
• Key objectives of the Scheme are as follows;
  • Encourage the private sector to scale up research, development, and innovation (RDI) in sunrise domains and in other sectors relevant for economic security, strategic purpose, and self-reliance,
  • Finance transformative projects at higher levels of Technology Readiness Levels (TRL),
  • Support acquisition of technologies which are critical or of high strategic importance,
  • Facilitate setting up of a Deep-Tech Fund of Funds.
• The Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overarching strategic direction to the RDI Scheme.

India’s R&D Landscape 

• India’s R&D expenditure has doubled in the last decade, but still remains around 0.7% of GDP, lower than global leaders such as the USA (2.8%) and China (2.4%).
• The private sector contributes less than 40% of total R&D spending, compared to over 70% in advanced economies.

Government Initiatives to Boost R&D

• National Research Foundation (NRF): Aims to enhance research funding and collaboration between academia and industry.
• Atal Innovation Mission (AIM): Encourages startups, entrepreneurship, and innovation among students and professionals.
• Production-Linked Incentive (PLI) Scheme: Supports high-tech manufacturing through incentives for R&D-driven industries.
• Launch of National Missions such as;
  • National Quantum Mission to make India one of the leading nations in the development of Quantum Technologies & Applications (budget outlay: ₹6,003.65 crore),
  • Electric Vehicle-Mission program under ANRF’s MAHA (Mission for Advancement in High-impact Areas) programme; 
  • India Semiconductor Mission (₹76,000 crore) for building up semiconductor ecosystem in India; 
  • Deep Ocean Mission to explore and sustainably utilize the deep ocean’s resources (budget outlay: ₹4077 crore); 
  • India AI Mission to strengthen AI capabilities (budget outlay: ₹10,372 crore).
• Introduction of enabling policy frameworks such as the Geospatial Policy 2022, Space Policy 2023, and BioE3 (Biotechnology for Economy, Environment and Employment) Policy 2024.

Challenges in India’s R&D Ecosystem

• Limited University-Industry Collaboration: Weak links between academia and industry hinder commercialization of research.
• Fragmented Institutional Ecosystem: Overlapping responsibilities reduce efficiency in fund utilisation.
• Skilled Workforce Deficit: Shortage of trained R&D professionals in deep-tech and interdisciplinary fields.

Way Ahead

• Global Collaborations: Leveraging partnerships under frameworks like the Indo-US iCET, G20 S&T Cooperation, and BRICS Innovation Network.
• Performance-Based Funding: Regular monitoring and performance-linked disbursements can enhance accountability.
• Regional Innovation Clusters: Encouraging R&D hubs in Tier-II and Tier-III cities can democratise innovation.

Source: PIB