“When the RDI scheme is fully deployed, with a capital of Rs 1 lakh crore in about 10 years, our hope is that it will catalyse 10x investment from the private industry and create new employment opportunities,” Abhay Karandikar, Member NITI Aayog told ET.
NITI Aayog or the National Institution for Transforming India is the Centre’s public policy think tank, headed by Prime Minister Narendra Modi.
Karandikar further said that the prestigious scheme would also bring at least “10 globally competitive” homebred companies to the fore.
Last year, the government launched its flagship Rs 1-lakh crore RDI Fund over a period of six years, including ₹20,000 crore allocated for FY 2025–26 to support innovation in the deep tech sector. The program is being implemented by the Department of Science and Technology (DST) under the Anusandhan National Research Foundation (ANRF).
“The Prime Minister articulated Atmanirbharta (self reliance). So clearly, this is the government’s priority to become Atmanirbhar (self reliant) in technologies critical for the country and for national priorities,” he added.
The focus areas include artificial intelligence (AI), biotechnology, digital economy, energy security, quantum computing, space technologies, and advanced materials. The fund supports initiatives with Technology Readiness Level (TRL) 4 and above.The scheme provides financing through long-term, zero-interest loans and equity infusions, covering up to 50% of project costs at par with private sector contributions.
Following enabling policies, the top government functionary said that “these are the good times for deep tech innovators” to work in India.
“Backed by government’s forward-looking schemes and policies, the private sector’s contribution towards research and development (R&D) is gradually increasing , according to Karandikar .
Historically, India’s private sector moved slow in investing in cutting edge R&D with nearly 30% of contribution as compared to government’s 70%.
Currently, the country’s Gross Expenditure on Research and Development (GERD) is 0.8 per cent of the GDP. However, India’s present ranking in the Global Innovation Index (GII) has risen significantly from 81st in 2015 to 38th in 2026 out of 139 economies worldwide.