The Union Cabinet has cleared the Research Development and Innovation (RDI) Scheme with a ₹1 lakh crore outlay, aiming to boost India’s position as a global innovation hub. The move is expected to accelerate private-sector-led R&D in strategic and sunrise sectors including semiconductors, electronics, and deep-tech.
Ashok Chandak, President of IESA and SEMI India, welcomed the scheme, calling it “a landmark step in India’s journey toward becoming a global innovation hub.” He added, “By unlocking ₹1 lakh crore of long-term capital for sunrise and strategic sectors, this initiative will catalyze private-sector-led innovation critical to India’s technological sovereignty.”
Chandak said IESA would work with ANRF, DST, and MeitY to identify and drive high-impact projects, enable industry-academia-startup collaborations, and build commercialization pipelines to support deep-tech ventures.
Dr. Ajai Chowdhry, Founder of HCL and Chairman of the EPIC Foundation, described the move as a long-awaited milestone. “This landmark decision will profoundly impact India’s research and innovation landscape,” he said, noting India’s traditionally low R&D spending, at just 0.64% of GDP versus 2–5% in advanced economies.
“The idea is to encourage private-sector investment in strategic areas and develop products for both India and the global market,” Chowdhry explained. He highlighted the fund’s potential to bridge the gap between research and market-ready technologies, helping India move from technology readiness level 4 to level 9.
“This initiative will be crucial for achieving technology sovereignty and realizing the vision of Viksit Bharat by 2047,” Chowdhry added.
The RDI Scheme, to be housed under the Department of Science and Technology, is expected to transform India’s innovation ecosystem and strengthen its long-term global competitiveness.