Research, Development and Innovation Scheme
Also called: RDI Scheme, RDI Fund · Topic: Industrial Policy, Public Sector, MSMEs and Disinvestment · NCERT: Beyond NCERT
Meaning
The Research, Development and Innovation (RDI) Scheme is a ₹1 lakh crore fund spread over six years. The Union Cabinet approved it on 1 July 2025. It pays for private-sector R&D in sunrise and strategic areas such as AI, quantum computing, biotech, climate action and energy security. It works mainly through long-term loans at low or nil interest, and in some cases through equity (buying a share in the firm), mostly for startups. It is not a grant scheme.
Funding comes with conditions. The project must be at TRL-4 or above. TRL means technology readiness level, a 1–9 scale of how close an idea is to a real product, and TRL-4 means the idea already works in a lab test. The scheme also covers at most 50% of the project's cost. The money is held by a Special Purpose Fund inside ANRF (Anusandhan National Research Foundation). Second-level fund managers such as AIFs, DFIs, NBFCs, BIRAC and TDB pass it on to firms. DST is the nodal department. The scheme matters because private firms pay for only a small share of India's R&D.
Example
The PM launched the scheme at ESTIC on 3 November 2025, with ₹20,000 crore set aside for FY 2025-26. Suppose a firm has a working lab prototype of a battery and needs ₹100 crore to scale it up. It could get a low-interest loan of up to ₹50 crore and must raise the other half itself.
Don't confuse with
- ANRF research grants: these pay for basic, early-stage science (TRL 1–3) and do not have to be repaid. The RDI Scheme mostly lends to projects that are already close to the market.
- Production-linked incentive (PLI): PLI pays firms a percentage of their extra sales over a base year. The RDI Scheme pays for research before anything is sold.