18 March 2026·PIB

PARLIAMENT QUESTION: RESEARCH, DEVELOPMENT AND INNOVATION SCHEME

In this note

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 [1][2].
Operationalised through a Special Purpose Fund (SPF) within the Anusandhan National Research Foundation (ANRF) via a two-tier funding architecture [2][3].
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 [3][2].

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 [3].
ANRF Executive Council approved the operational architecture; first project calls launched by TDB (4 Feb 2026) and BIRAC (13 Feb 2026) [2][4].
BIRAC–RDI Fund first national call of ₹2,000 crore announced for biotech sector [5].

2023: ANRF Act, 2023 enacted, subsuming SERB; ANRF established as apex body for research funding [1].
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 [1].
Late 2025: ANRF Executive Council approves operationalisation decisions; SPF created within ANRF [2].
Feb–Mar 2026: First SLFMs (TDB, BIRAC) issue calls; guidelines & financial rules notified [3][4].

Nodal Ministry: Ministry of Science & Technology → Department of Science & Technology (DST) [3].
Custodian Body: Anusandhan National Research Foundation (ANRF) under ANRF Act, 2023 [2].
Corpus: ₹1,00,000 crore over 6 years; FY 2025-26 allocation ₹20,000 crore [1].
Architecture: Two-tier — Tier 1: Special Purpose Fund (SPF) in ANRF; Tier 2: Second Level Fund Managers (SLFMs) [2].
SLFM categories: Alternative Investment Funds (AIFs), Development Finance Institutions, NBFCs, Focused Research Organisations (e.g., TDB, BIRAC, IIT Research Parks) [2].
Governance:
ANRF Governing Board — chaired by Prime Minister (strategic direction) [2].
ANRF Executive Council — approves guidelines, recommends SLFMs and sunrise-sector projects [2].
Empowered Group of Secretaries (EGoS) — chaired by Cabinet Secretary; approves scheme changes, sectors, SLFMs; performance review [2].
Target sectors: energy security, climate action, quantum computing, AI, biotechnology, digital economy, deep-tech [1].
Instruments: long-tenor concessional loans, equity (incl. Deep Tech Fund of Funds) [1].

Economic

Aims to crowd-in private R&D which currently contributes only ~36% of India's GERD (vs >65% in OECD economies) [1].
Concessional capital reduces the valley of death between lab-prototype and commercial product [1].

Scientific / Technological

Focus on sunrise tech (AI, quantum, biotech) aligns with National Quantum Mission, IndiaAI Mission, BioE3 Policy [1].
BIRAC's ₹2,000 crore biotech call is the first sectoral deployment [5].

Administrative / Governance

Multi-layered approval (PM-led GB → EGoS → EC) ensures inter-ministerial coordination but raises bureaucratic-delay risk [2].
Fund-of-Funds model mirrors SIDBI's FFS for startups — leverages domain expertise of SLFMs [2].

Legal / Statutory

Anchored in ANRF Act, 2023; governed by ANRF (Utilization of RDI Fund) Financial Rules, 2026 [3].
Distinct from earlier SERB grants — RDI is repayable/refinanced capital, not pure grant [1].

1 Jul 2025 — Cabinet approval of RDI Scheme, ₹1 lakh crore [1].
Late 2025 — ANRF Executive Council operationalisation decisions [2].
4 Feb 2026 — TDB notified as SLFM; project call issued [4].
13 Feb 2026 — BIRAC launched ₹2,000 cr biotech call [5].
18 Mar 2026 — Implementation Guidelines & Financial Rules 2026 notified; reported to Parliament [3].

RDI Scheme corpus: ₹1 lakh crore over 6 years [1].
Cabinet approval date: 1 July 2025 [1].
Nodal Ministry: DST (not MeitY, not Principal Scientific Adviser) [3].
Custodian: ANRF, set up under ANRF Act, 2023 [2].
SPF = Special Purpose Fund — first-level custodian within ANRF [3].
ANRF Governing Board chaired by Prime Minister [2].
EGoS chaired by Cabinet Secretary [2].
First two SLFMs notified: TDB and BIRAC [2][4].
BIRAC's first national call: ₹2,000 crore for biotech [5].
FY 2025-26 allocation: ₹20,000 crore [1].
Financial Rules notification: ANRF (Utilization of RDI Fund) Financial Rules, 2026 [3].
Consulted ministries: DEA & Department of Expenditure [3].
Funding instruments include Deep Tech Fund of Funds [1].

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:

"The RDI Scheme marks a paradigm shift from grant-based to refinance-based public funding of innovation. Discuss its design and challenges." (15M)
"Examine how ANRF's two-tier funding architecture seeks to bridge India's private R&D gap." (10M)
"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)

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.

Confusing nodal ministry as MeitY/Principal Scientific Adviser — it is DST [3].
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 [1].
Mixing up Governing Board (PM) with EGoS (Cabinet Secretary) [2].
Confusing RDI Scheme with ANRF's general research grants — RDI is a distinct SPF.