The Union Cabinet, chaired by Prime Minister Modi on July 1, 2025, approved a Rs.1 trillion Research, Development & Innovation (RDI) Scheme to boost private sector investment in sunrise and strategic sectors like AI, quantum computing, biotech, and digital agriculture. Designed to bridge funding gaps, the scheme offers long-term, low or interest-free financing via the ANRF to catalyze innovation and strengthen India’s tech ecosystem.

Key Points:

• Corpus & Purpose: A Rs.1?lakh?crore fund was approved to provide growth and risk capital via long-tenure, concessional financing to private firms in strategic and sunrise domains .
• Two-Tier Funding: Fund flow begins with a Special Purpose Fund under the Anusandhan National Research Foundation (ANRF), chaired by the PM, and cascades to second-level fund managers (AIFs, DFIs, NBFCs) for deployment in specific projects .
• Deep-Tech FoF: The scheme includes a dedicated Deep-Tech Fund of Funds to finance high TRL (Technology Readiness Level) projects and support acquisition of critical or strategic technologies .
• Strategic Focus Areas: Target verticals include AI, quantum computing, biotechnology, robotics, digital agriculture, energy security, climate tech, semiconductors, and other high-growth sectors .
• Governance & Oversight: ANRF Governing Board (PM-led) sets strategic direction; the Executive Council defines guidelines and fund managers; and an Empowered Group of Secretaries, led by the Cabinet Secretary, ensures oversight and performance reviews .
• Implementation Agency: The Department of Science & Technology (DST) will act as the nodal department for disbursement and monitoring.
• Economic Sovereignty Goal: The scheme aims to overcome R&D financing constraints, drive adoption of cutting-edge technologies, foster self-reliance, and position India as a global innovation hub by 2047 .