PARLIAMENT QUESTION: RESEARCH, DEVELOPMENT AND INNOVATION SCHEME

1. At a Glance

• RDI Scheme is a ₹1 lakh crore Union initiative to provide long-tenor, low/nil-interest loans (and equity) to catalyse private-sector R&D in strategic and sunrise sectors [S1][S2].
• Operationalised through a Special Purpose Fund (SPF) within the Anusandhan National Research Foundation (ANRF) via a two-tier funding architecture [S2][S3].
• Nodal department: Department of Science & Technology (DST); flagship instrument to push India's Gross Expenditure on R&D (GERD) beyond the current ~0.7% of GDP [S3][S2].

2. Why in the News

• 18 March 2026: DST (in reply to Parliament) confirmed finalisation of Implementation Guidelines for the RDI Fund (in consultation with DEA & DoE) and notification of ANRF (Utilization of RDI Fund) Financial Rules, 2026 [S3].
• ANRF Executive Council approved the operational architecture; first project calls launched by TDB (4 Feb 2026) and BIRAC (13 Feb 2026) [S2][S4].
• BIRAC–RDI Fund first national call of ₹2,000 crore announced for biotech sector [S5].

3. Background & Evolution

• 2023: ANRF Act, 2023 enacted, subsuming SERB; ANRF established as apex body for research funding [S1].
• 1 July 2025: Union Cabinet (chaired by PM) approved the RDI Scheme with ₹1 lakh crore corpus over 6 years, ₹20,000 crore for FY 2025-26 [S1].
• Late 2025: ANRF Executive Council approves operationalisation decisions; SPF created within ANRF [S2].
• Feb–Mar 2026: First SLFMs (TDB, BIRAC) issue calls; guidelines & financial rules notified [S3][S4].

4. Core Static Facts

• Nodal Ministry: Ministry of Science & Technology → Department of Science & Technology (DST) [S3].
• Custodian Body: Anusandhan National Research Foundation (ANRF) under ANRF Act, 2023 [S2].
• Corpus: ₹1,00,000 crore over 6 years; FY 2025-26 allocation ₹20,000 crore [S1].
• Architecture: Two-tier — Tier 1: Special Purpose Fund (SPF) in ANRF; Tier 2: Second Level Fund Managers (SLFMs) [S2].
• SLFM categories: Alternative Investment Funds (AIFs), Development Finance Institutions, NBFCs, Focused Research Organisations (e.g., TDB, BIRAC, IIT Research Parks) [S2].
• Governance:
• ANRF Governing Board — chaired by Prime Minister (strategic direction) [S2].
• ANRF Executive Council — approves guidelines, recommends SLFMs and sunrise-sector projects [S2].
• Empowered Group of Secretaries (EGoS) — chaired by Cabinet Secretary; approves scheme changes, sectors, SLFMs; performance review [S2].
• Target sectors: energy security, climate action, quantum computing, AI, biotechnology, digital economy, deep-tech [S1].
• Instruments: long-tenor concessional loans, equity (incl. Deep Tech Fund of Funds) [S1].

5. Multi-Dimensional Analysis

Economic - Aims to crowd-in private R&D which currently contributes only ~36% of India's GERD (vs >65% in OECD economies) [S1]. - Concessional capital reduces the valley of death between lab-prototype and commercial product [S1].

Scientific / Technological - Focus on sunrise tech (AI, quantum, biotech) aligns with National Quantum Mission, IndiaAI Mission, BioE3 Policy [S1]. - BIRAC's ₹2,000 crore biotech call is the first sectoral deployment [S5].

Administrative / Governance - Multi-layered approval (PM-led GB → EGoS → EC) ensures inter-ministerial coordination but raises bureaucratic-delay risk [S2]. - Fund-of-Funds model mirrors SIDBI's FFS for startups — leverages domain expertise of SLFMs [S2].

Legal / Statutory - Anchored in ANRF Act, 2023; governed by ANRF (Utilization of RDI Fund) Financial Rules, 2026 [S3]. - Distinct from earlier SERB grants — RDI is repayable/refinanced capital, not pure grant [S1].

6. Recent Developments

• 1 Jul 2025 — Cabinet approval of RDI Scheme, ₹1 lakh crore [S1].
• Late 2025 — ANRF Executive Council operationalisation decisions [S2].
• 4 Feb 2026 — TDB notified as SLFM; project call issued [S4].
• 13 Feb 2026 — BIRAC launched ₹2,000 cr biotech call [S5].
• 18 Mar 2026 — Implementation Guidelines & Financial Rules 2026 notified; reported to Parliament [S3].

7. Prelims Hooks

• RDI Scheme corpus: ₹1 lakh crore over 6 years [S1].
• Cabinet approval date: 1 July 2025 [S1].
• Nodal Ministry: DST (not MeitY, not Principal Scientific Adviser) [S3].
• Custodian: ANRF, set up under ANRF Act, 2023 [S2].
• SPF = Special Purpose Fund — first-level custodian within ANRF [S3].
• ANRF Governing Board chaired by Prime Minister [S2].
• EGoS chaired by Cabinet Secretary [S2].
• First two SLFMs notified: TDB and BIRAC [S2][S4].
• BIRAC's first national call: ₹2,000 crore for biotech [S5].
• FY 2025-26 allocation: ₹20,000 crore [S1].
• Financial Rules notification: ANRF (Utilization of RDI Fund) Financial Rules, 2026 [S3].
• Consulted ministries: DEA & Department of Expenditure [S3].
• Funding instruments include Deep Tech Fund of Funds [S1].

8. Mains Relevance

• GS-III — "Science & Technology – developments and their applications and effects in everyday life; Indigenization of technology."
• GS-III — "Indian Economy – mobilization of resources" (private R&D financing).
• GS-II — Government policies and interventions; statutory bodies (ANRF).

Plausible question stems: 1. "The RDI Scheme marks a paradigm shift from grant-based to refinance-based public funding of innovation. Discuss its design and challenges." (15M) 2. "Examine how ANRF's two-tier funding architecture seeks to bridge India's private R&D gap." (10M) 3. "Despite a ₹1 lakh crore commitment, the success of the RDI Scheme will hinge on the institutional capacity of Second-Level Fund Managers. Critically analyse." (15M)

9. Related Topics to Study Next

• ANRF Act, 2023 — statutory parent of the scheme.
• National Quantum Mission, IndiaAI Mission, BioE3 Policy — sectoral consumers of RDI funds.
• Deep Tech Fund of Funds — complementary instrument.
• SERB — predecessor body subsumed into ANRF.
• GERD & R&D statistics (DST R&D Survey) — context of low private R&D.
• SIDBI Fund of Funds for Startups (FFS) — comparable two-tier model.
• Atal Innovation Mission / NIDHI / Startup India — innovation ecosystem layers.
• Economic Survey chapter on Innovation — analytical framing.

10. Common Errors / Trap Areas

• Confusing nodal ministry as MeitY/Principal Scientific Adviser — it is DST [S3].
• Treating ANRF as a MeitY body — it is under DST per ANRF Act 2023.
• Assuming RDI gives grants — it provides concessional loans/equity via SLFMs [S1].
• Mixing up Governing Board (PM) with EGoS (Cabinet Secretary) [S2].
• Confusing RDI Scheme with ANRF's general research grants — RDI is a distinct SPF.

11. Sources

• [S1] Cabinet Approves Research Development and Innovation (RDI) Scheme — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2141130 — (tier: 1)
• [S2] ANRF Executive Council approves major decisions regarding operationalization of RDI Fund — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2177845 — (tier: 1)
• [S3] PARLIAMENT QUESTION: Research, Development and Innovation Scheme (18 Mar 2026) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2241755 — (tier: 1)
• [S4] PARLIAMENT QUESTION: RDI SCHEME — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2238347 — (tier: 1)
• [S5] BIRAC–RDI Fund ₹2,000 Crore First National Call — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2227506 — (tier: 1)