India launches Rs 1 lakh crore R&D scheme for DeepTech

The Indian government has launched the "Research, Development and Innovation (RDI)" scheme with a total outlay of Rs 1 lakh crore over six years. This scheme aims to fund private sector projects in deep tech areas, which include artificial intelligence (AI), robotics, renewable energy, and biotechnology. The scheme’s launch comes amid a global push by countries to secure a lead in emerging technologies, recognising that a strong domestic R&D base is crucial for economic and strategic independence. Dr. Jitendra Singh, Union Minister of State for Science and Technology, provided details about the RDI scheme in a written reply to the Rajya Sabha.

The RDI scheme, funded by the Consolidated Fund of India, will allocate Rs 20,000 crore for the fiscal year 2025–26. It focuses on supporting transformative projects at Technology Readiness Levels (TRL) 4 and above. The scheme offers long-term, low- or zero-interest loans, equity investments, and contributions to a Deep-Tech Fund of Funds. It does not provide grants or short-term loans.

The Anusandhan National Research Foundation (ANRF) serves as the primary fund custodian for the scheme. A Special Purpose Fund (SPF) under the ANRF manages the allocation of funds to innovators, researchers, and startups. Second-level fund managers, including Alternative Investment Funds (AIFs) and Development Finance Institutions (DFIs), will oversee the implementation. The Empowered Group of Secretaries (EGoS) will approve sectors and select fund managers.

The RDI scheme identifies several strategic technology sectors for support. These include energy security, climate action, and deep technologies such as quantum computing, AI, biotechnology, and the digital economy. The scheme has the flexibility to include other critical sectors as needed.

This new scheme builds on existing government initiatives that already promote R&D in deep tech areas. The Department of Science & Technology (DST) runs the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS) with an outlay of Rs 3,660 crore. Under this mission, a project named “Bharat-Gen” is developing a large language model for 22 Indian languages at IIT Bombay. The mission has also established 25 Technology Innovations Hubs (TIHs) in academic institutions. For example, IIT Hyderabad's TIHAN focuses on autonomous navigation with a sanctioned budget of Rs 185 crore, while IISc Bengaluru's I-HUB focuses on robotics with a budget of Rs 270 crore.

The Department of Biotechnology (DBT) is implementing its BioE3 policy to promote biomanufacturing. The Council of Scientific and Industrial Research (CSIR) funds projects in AI, robotics, and drone technologies. The Department of Atomic Energy (DAE) is involved in developing Small Modular Reactors for clean energy and various robotic technologies for high-radiation environments. The Ministry of New and Renewable Energy (MNRE) also supports R&D through its Renewable Energy Research and Technology Development Programme, providing funding to research organisations and startups.