The Union Cabinet approved the ₹1 lakh crore Research, Development and Innovation (RDI) Fund on 1 July 2025, and the Fund was formally launched by the Hon'ble Prime Minister on 3 November 2025.

During FY 2026, the Technology Development Board (TDB) and the Biotechnology Industry Research Assistance Council (BIRAC) were approved as Second Level Fund Managers (SLFMs) under the Focused Research Organisations (FRO) category. Further, ₹500 crore was disbursed to TDB in March 2026 for investment in eligible technology entities. So far, TDB has approved 22 projects with a total project cost of ₹4,744 crore, including RDIF support of ₹2,192 crore. BIRAC has also shortlisted eight projects for support under the RDIF, involving an amount of ₹390.35 crore.

Applications were also invited from Second Level Fund Managers (SLFMs) for onboarding under the Fund. A total of 162 applications were received from various Alternative Investment Funds (AIFs) and 38 applications from Focused Research Organisations (FROs). These applications have been processed and are currently under consideration by the competent sanctioning authority, involving a total proposed commitment of around ₹8,000 crore for various AIFs and FROs.

 

The Scheme targets strategic technology sectors, including energy security and transition, and climate action; deep technologies, including quantum computing, robotics and space; artificial intelligence (AI) and its applications in agriculture, health and education; biotechnology, biomanufacturing, synthetic biology, pharmaceuticals and medical devices; and the digital economy, including digital agriculture. Other proposed sectors include technologies whose indigenisation is important for strategic reasons, economic security and Atmanirbharta, as well as any other sector or technology deemed necessary in the public interest.

Following the launch of the RDIF, widespread consultations were held with various stakeholders across the country. Outreach programmes were organised in major cities such as Mumbai, Bengaluru, Panchkula and Delhi, with large-scale participation from academia, venture capitalists, fund managers, start-ups, industry and research institutions. Under the FRO category, research parks in leading academic and technological institutions such as the IITs, IISc and other institutions of eminence are being considered as partner institutions for channelising the RDI Fund to support innovation-led start-ups and industries in critical technology sectors.

 

As per the RDIF Guidelines, the Second Level Fund Managers (SLFMs) shall utilise the RDIF capital for supporting projects undertaken by eligible technology entities at Technology Readiness Level (TRL) 4 or above. Assistance under the Scheme is limited to not more than 50% of the total assessed project cost, while the remaining financing is to be mobilised by the project proponents through their own resources or commercial sources. In the case of loans, RDIF support is limited to 50% of the project cost, while in the case of equity or equity-linked instruments, it is limited to 50% of the value of each funding round.

So far, two Second Level Fund Managers, namely TDB and BIRAC, have been sanctioned ₹1,000 crore each under the RDIF. The Government's roadmap for scaling the Fund includes onboarding additional Second Level Fund Managers (SLFMs), expanding the network of participating AIFs and FROs, mobilising private and commercial capital through the blended financing framework, expanding support to eligible technology entities in strategic sectors, and strengthening stakeholder outreach to enhance participation under the Scheme.

This information was given by Union Minister of State (Independent Charge) for Science & Technology and Earth Sciences, Dr. Jitendra Singh, in a written reply in the Rajya Sabha today.

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