Scheme
Research Development and Innovation (RDI) Scheme
GS3 Science and technology policyPrelims and Mains
- Why in news
- On 12 October 2026, the RDI Fund announced its first cohort of 19 Second Level Fund Managers, approved by the Empowered Group of Secretaries on 8 October 2026, with Rs 7,131 crore committed.
- What it is
- The RDI Scheme funds private-sector research and innovation in sunrise and strategic areas, to help turn deep science into products. Money flows through a Rs 1 lakh crore fund (RDIF) to second-level fund managers such as the Technology Development Board. These managers lend or invest in eligible technology enterprises (ETEs).
- Who runs it
- RDIF is managed by an Independent Business Unit housed within ANRF, under the Department of Science and Technology.
- Who gets the money
- SLFMs channel capital to Eligible Technology Enterprises working at Technology Readiness Level 4 and above.
- Launch
- The Rs 1 lakh crore scheme was launched by the Prime Minister in November 2025.
- Approval chain
- Proposals went to the ANRF Executive Council and then to the EGoS for approval, after evaluation and an Expert Advisory Committee interaction.
- Private matching
- SLFMs are expected to mobilise private capital equal to the RDIF contribution.
- Matching funds rule
- TDB releases RDI money only against matching funds the ETE raises from non-government sources.
- Call to reopen
- The call is paused only for now and will reopen after all proposals received till 30 September are assessed.
- Form of funding
- The support is given as Optionally Convertible Debentures (OCD), a debt instrument that can convert to equity, not a grant.
- Technology readiness target
- The project aims to raise the technology from TRL-4 and above to TRL-8.
- Priority area
- The project fits the RDI Fund's priority area of advanced and reusable launch vehicles and propulsion innovation within Space Technologies.
- Full-system reusability
- The project moves beyond recovering only the first stage towards reusing the whole system, to cut costs and space debris.
- Earlier Agnikul work
- Agnikul developed the Agnilet engine, a single-piece 3D-printed rocket engine made in-house.
- Form of support
- The money is given as Optionally Convertible Debentures (OCD), not a grant.
- SAR vs optical
- SAR can operate regardless of daylight and can image through cloud cover. Optical imaging is affected by cloud and illumination.
- Technology readiness
- The funding is meant to take the technology from TRL-6 to TRL-9, that is, from a demonstrated prototype to a proven system in operation.
- Intended uses
- The satellite is meant for surveillance, human and vehicle detection and target classification, in varied weather and light.
- Fund managers
- TDB and BIRAC are the designated Second-Level Fund Managers. They issued calls on 4 and 13 February 2026.
- Eligibility
- Start-ups, companies and industry-led R&D projects developing technologies at TRL 4 and above in strategic and sunrise sectors can get funding.
- Mode
- The scheme works at national level through a competitive, proposal-based mechanism.
- NM-ICPS
- The National Mission on Interdisciplinary Cyber-Physical Systems has an outlay of Rs 3,660 crore and 25 Technology Innovation Hubs.
- Fund size and period
- BIRAC will deploy Rs 2,000 crore over up to five years, with scope for expansion.
- Approval and launch
- The RDI initiative was approved by the Union Cabinet in July 2025 and launched in November 2025 under ANRF, anchored by DST.
- Technology readiness and instruments
- The fund backs technologies from TRL-4 to TRL-9 through equity, convertible instruments and long-term debt.
- Link to BioE3
- The fund complements the BioE3 Policy and targets biopharma, bio-industrial manufacturing, bioenergy, blue economy and biocomputation.
- Bioeconomy target
- India's bioeconomy is put at 165.7 billion dollars in 2024, with targets of 300 billion dollars by 2030 and 1 trillion dollars by 2047.
- Fund size
- The RDI Fund is a Rs 1 lakh crore initiative to catalyse private sector-led research and innovation.
- Roles of the first fund managers
- TDB handles projects across all sunrise and strategic sectors. BIRAC oversees biotechnology and allied areas.
- Initial allocation
- TDB and BIRAC get Rs 2,000 crore each in the first quarter, so the initial allocation is Rs 4,000 crore.
- Approval route
- The Empowered Group of Secretaries approved the two managers on 12 January, in line with the decision of the ANRF Executive Council.
Don’t confuse with RDIF vs ANRF: ANRF is the statutory research body; RDIF is the Rs 1 lakh crore fund run by a business unit inside it.
Don’t confuse with SLFM vs ETE: SLFMs are intermediaries that receive RDIF money; ETEs are the firms that finally receive funding.
Don’t confuse with RDIF vs SLFM: RDIF is the main fund; second-level fund managers like TDB take money from it and pass it on to ETEs.
Don’t confuse with Allocation vs disbursement: Allocation is what the fund sets aside; disbursement depends on ETEs raising matching funds and sending demand notices.
Don’t confuse with RDI Fund vs TDB: The RDI Fund is the Rs 1 lakh crore pool. TDB is one of the second-level fund managers that deploys money from it to firms.
Don’t confuse with TRL-4 vs TRL-8: TRL is a 1-9 scale of technology maturity. TRL-4 is lab validation of components, while TRL-8 is a complete, qualified system.
Don’t confuse with SAR vs EO imaging: SAR is active microwave imaging that works at night and through cloud. EO imaging is usually passive, relies on sunlight and is blocked by cloud.
Don’t confuse with RDI Scheme vs NM-ICPS: RDI funds private-sector R&D via fund managers; NM-ICPS is a DST mission funding hubs in academic institutions.
Don’t confuse with TDB vs BIRAC: Both are RDI fund managers; BIRAC focuses on biotechnology, TDB on commercialising indigenous technology.
Don’t confuse with RDI Scheme vs ANRF: ANRF is the body under which the RDI initiative runs. The RDI Scheme is the funding programme for private-sector research.
Don’t confuse with BIRAC vs DBT: BIRAC is the industry-research support agency linked to the Department of Biotechnology. It is the fund manager here, not the department.
Don’t confuse with RDI Fund vs Fund of Funds for Startups: The RDI Fund finances technology enterprises in research and innovation through second-level managers. The Fund of Funds for Startups (SIDBI-run) invests in startups through venture funds.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Provides long-term patient capital for high-risk private R&D, addressing a financing gap.
- Supports technological sovereignty and reduces dependence on imported technology.
- Gives long-tenor, low-cost finance to private deep-tech research, where risk keeps lenders away.
- Strong response (about 330 proposals) shows demand for deep-science funding.
- Gives long-term finance to private space firms for risky, capital-heavy technology that ordinary lenders avoid.
- Reusable launchers can lower launch costs and space debris, strengthening India's position in the space economy.
- Builds indigenous, all-weather, high-resolution Earth-observation capability for surveillance and civil use.
- Shows the RDI Fund helping private firms through the late-stage gap between development and deployment.
- Raises private R&D, which is low in India relative to GDP.
- Supports strategic self-reliance in deep-tech, AI, biotech and energy transition.
- Gives patient capital to long-gestation, high-risk biotech research that private lenders often avoid.
- Helps move lab research to industrial-scale products and supports the BioE3 push.
- Raises low private-sector R&D spending by sharing the risk of high-risk, long-gestation research.
- Helps turn laboratory research into products by linking labs, startups and industry.
Problems
- Private R&D spending in India is low, and investors may be wary of high-risk, long-gestation projects.
- Matching private capital must be mobilised, and fund managers must be selected and monitored well.
- Limited evaluation capacity: only about 150 projects assessed in seven months, causing a call closure.
- Disbursal is slowed by the time ETEs need to raise matching funds.
- Reusable launch technology is technically hard, especially controlled descent and restart, and carries high failure risk.
- Debt-type support must be repaid or converted, which pressures start-ups with no early revenue.
- Moving from TRL-6 to TRL-9 is costly and risky, and needs long testing and validation.
- Commercial viability and demand for the data are uncertain.
- Private firms may hesitate to take risk on long-gestation, uncertain research.
- Capacity of fund managers to evaluate many proposals and track outcomes.
- Risk of low private co-investment and slow deployment in high-risk deep-tech.
- Biotech scale-up needs advanced infrastructure and regulatory clarity.
- Private firms may be slow to take up high-risk research, and projects past TRL-4 may leave out early-stage research.
- Guidelines have needed revision after stakeholder queries, which suggests clarity and speed are concerns.
Way forward
- Onboard more fund managers and track outcomes such as products commercialised.
- Link funding to industry-academia partnerships and clear transparency norms.
- Add more fund managers and evaluation capacity, as DST/ANRF plans to assign more SLFMs.
- Communicate call closures clearly to avoid misreading and keep investor confidence.
- Tie disbursement to technical milestones and independent testing, with IN-SPACe and ISRO facilities support.
- Track outcomes of RDI-funded projects publicly to judge whether they move technology from lab to market.
- Link such funded projects to government demand, such as defence and agriculture users, to help commercialisation.
- Track outcomes of RDI-funded projects so that later funding can be targeted better.
- Use outcome-based monitoring and third-party evaluation of funded projects.
- Link industry, academia and start-ups through ANRF missions and hubs.
- Speed up approvals and align the fund with BioE3 biomanufacturing hubs.
- Track outcomes by technology readiness level and publish deployment data.
- Keep the process transparent and simple, and revise guidelines on feedback.
- Track measurable outcomes for industry and society.
Put in your answer
RDI Fund example: TDB-DST's ₹63.84 crore OCD support to GalaxEye shows how the RDI Fund backs private strategic-technology projects.
RDI Scheme: Rs 1 lakh crore over six years to incentivise private R&D in strategic sectors.
NM-ICPS: Rs 3,660 crore mission with 25 hubs backing deep-tech start-ups.
Bioeconomy growth: India's bioeconomy rose from 28 billion dollars in 2012 to 165.7 billion dollars in 2024, according to BIRAC's MD.
BIRAC ecosystem: BIRAC reports more than 100 bio-incubation centres and over 10 lakh square feet of incubation space.
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The Research, Development and Innovation Fund is managed by an Independent Business Unit housed within the Anusandhan National Research Foundation.
- 2.The first cohort of Second Level Fund Managers under the RDI Fund consists only of Alternative Investment Funds.
- 3.Second Level Fund Managers under the RDI Fund are expected to mobilise private capital equivalent to the RDIF contribution.
Which of the statements given above is/are correct?
True or false?
1 of 12
Statements the way Prelims prints them. Say first, then see the fact.
1.The RDI Fund is managed by an Independent Business Unit housed within the Anusandhan National Research Foundation.
True. RDIF is run by an Independent Business Unit within ANRF, under DST.
2.The first cohort of Second Level Fund Managers consists only of Alternative Investment Funds.
False. It has 14 AIFs and 5 Focused Research Organisations.
3.Second Level Fund Managers under the RDI Fund channel capital to enterprises working at Technology Readiness Level 4 and above.
True. ETEs at TRL 4 and above are eligible.
4.Second Level Fund Managers are expected to mobilise private capital equal to the RDIF contribution.
True. Matching private capital is expected.
5.Proposals from prospective fund managers are finally approved by the Executive Council of ANRF, with no further approval needed.
False. After the ANRF Executive Council, the Empowered Group of Secretaries gives the approval.
6.The RDI Scheme was launched in November 2025.
True. Launched by the Prime Minister in November 2025.
7.The RDI Scheme has a total outlay of Rs 1 lakh crore spread over six years.
True. Rs 1 lakh crore over six years.
8.The Technology Development Board and BIRAC are the Second-Level Fund Managers under the RDI Scheme.
True. TDB and BIRAC are the designated SLFMs.
9.The RDI Scheme funds only technologies at the earliest research stage, below TRL 4.
False. It funds technologies at TRL 4 and above.
10.Under the RDI Scheme, funds are allocated to states on a state-specific quota basis.
False. It operates nationally through a competitive, proposal-based mechanism.
11.The National Mission on Interdisciplinary Cyber-Physical Systems has established 25 Technology Innovation Hubs in academic institutions.
True. 25 TIHs in academic institutions.
12.The Anusandhan National Research Foundation runs state-specific programmes for each state, including Jharkhand.
False. ANRF has no state-specific programmes; all calls are national and open.
Written by us from the release, not by UPSC; checked by a second model.
Mains practice
15 marks · 250 words
The Government has launched the Rs 1 lakh crore Research, Development and Innovation (RDI) Scheme, with TDB and BIRAC as Second-Level Fund Managers, to push private firms to invest in R&D. Discuss the main features of the scheme and examine the challenges in raising private-sector research in India, with a way forward.
Worth revising until Prelims 2028: most news questions come within two years of the event.