In a monumental move for India’s innovation and technology ecosystem, the Union Cabinet has approved the long-anticipated Research Development and Innovation (RDI) Scheme, allocating ₹1 lakh crore in long-term funding to empower sunrise sectors and strategic technologies. The scheme is poised to serve as a turning point for India’s R&D investment trajectory—unlocking vast opportunities for private sector-led research, product development, and global competitiveness.
Industry stalwarts have enthusiastically welcomed the decision, describing it as a “game-changer” that could dramatically elevate India's stature as a self-reliant technology powerhouse.
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.
"We Must Lead with Conviction, Not Dependency"
Dr. Ajai Chowdhry, Founder HCL, Chairman EPIC Foundation
Veteran technocrat and innovation evangelist Dr. Ajai Chowdhry, Founder of HCL and Chairman of the EPIC Foundation, praised the scheme as a historic step toward achieving technology sovereignty and realizing the long-term vision of Viksit Bharat by 2047.
“I warmly welcome the Union Cabinet's approval of the Research Development and Innovation (RDI) Scheme with a substantial outlay of ₹1 lakh crore, a milestone I've eagerly anticipated for the past 2-3 years. This landmark decision will profoundly impact India's research and innovation landscape. Under the Honorable Prime Minister's visionary leadership, the government has consistently demonstrated its commitment to progress in India’s R&D investment. The announcement of a ₹1 lakh crore R&D fund by the Government last year has now taken shape, marking a significant step forward for India's scientific and technological advancement,” stated Dr. Chowdhry.
Dr. Chowdhry emphasized the critical need to improve India’s R&D investment, currently hovering around 0.64% of GDP, compared to 2–5% in leading innovation economies like the U.S., Japan, and China.
“The private sector's contribution has been particularly limited. This was recognized by some of us and the government and recognizing this gap, the government's approval of the RDI scheme is a landmark decision, where the whole idea seems to be to encourage private sector to pick up strategic areas and sunrise sectors and create products for both India and the global market,” Dr. Chowdhry stated.
He noted that the fund will not only promote foundational research but also enable translational research—bridging the gap from academia to market. He further added, “Typically, under ANRF, technical, education / research institutions will take upto TRL (technology Readiness Level 4). Private sector (both Corporate and Start-ups) can then take it for translational research to TRL-9 for India and the world. Covid-19 catapulted us to the top league of connected nations. We made the right choices and the world watched us do that. Recently, Operation Sindoor has taught us another valuable lesson: we need belief in our own capabilities, invest in secure and indigenous infrastructure, become a product nation, and lead with conviction, not dependency.”
“The newly approved R&D fund will play a pivotal role in realizing this vision, enabling India to develop cutting-edge products across various sectors and assert its position as a Product Nation in different areas. With the Honourable Prime Minister at the helm and an empowered group of secretaries led by the Cabinet Secretary, we can expect long-term benefits from this fund. Housing the RDI Scheme in the Department of Science and Technology (DST) is a fitting decision, given its focus on R&D. This initiative will be a crucial step towards achieving technology sovereignty and realizing the vision of Viksit Bharat by 2047- something for us to look forward to,” he concluded.
"A Landmark Step Toward a Global Innovation Hub"
Ashok Chandak, President, IESA and SEMI India
“By unlocking ₹1 lakh crore of long-term capital for sunrise and strategic sectors, this initiative will catalyze private-sector-led innovation in areas critical to India’s economic and technological sovereignty — including semiconductors, deep-tech, and electronics,” Mr. Chandak emphasized.
Highlighting IESA’s proactive commitment to this national mission, Chandak elaborated on the organization’s collaborative roadmap with key stakeholders including ANRF, DST, and MeitY.
IESA strongly supports this vision and will actively work to mobilize its member base and ecosystem partners to align with the RDI goals. Mr. Chandak further stated that IESA has started to work with ANRF, DST and MeitY on R&D initiative and will contribute by:
Implementing identified high-impact R&D opportunities in semiconductors, electronics systems, and embedded technologies;
Facilitating collaboration between startups, academia, and industry to accelerate technology readiness;
Industry Sponsorships and funding for the high impact R&D projects.
And enabling the creation of robust pipelines for product commercialization and deep-tech venture growth.
Chandak underscored that the scheme has the potential to transform India’s innovation landscape, positioning the country as a global R&D destination.
The Road Ahead
The RDI Scheme, backed by a historic funding corpus and guided by national priorities, comes at a time when India is poised to redefine its role in the global technology order. By empowering deep-tech ventures, fostering academia-industry collaboration, and accelerating product development pipelines, the scheme could unleash a new era of innovation-led growth.
With proactive support from leading industry associations and visionary technocrats, the RDI initiative holds promise not just for economic expansion—but for realizing a self-reliant, technology-sovereign India by 2047.
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