India has pledged ₹7,131 crore to 19 newly selected managers of its Research, Development and Innovation (RDI) fund, seeking private money for long-term technology projects that struggle to obtain affordable financing.
The Ministry of Science and Technology expects the managers to bring in another ₹7,131 crore from private investors. That matching sum is a target for the new group, rather than a reported fundraising result.
Abhay Karandikar, a member of the National Institution for Transforming India (NITI Aayog), told The Economic Times he hopes the ₹1 lakh crore public fund will attract nearly ₹10 lakh crore in private investment over about 10 years and create jobs. His goal applies to the program as a whole and is separate from the new managers’ matching target.
The Cabinet approved the six-year program in July 2025, and the government launched it that November. The fund is intended to address a shortage of affordable financing for research and development projects with long timelines. It can provide long-term loans at low or no interest, as well as equity financing.
The new manager cohort includes five Focused Research Organisations alongside 14 alternative investment funds. Officials approved them Oct. 8, and the ministry announced the decision Oct. 12. The Technology Development Board and the Biotechnology Industry Research Assistance Council had already received manager approval in January.
Managers will direct funding to eligible businesses working in fields including artificial intelligence, biotechnology, quantum computing and space. For loan-backed projects, the fund can cover no more than 50% of assessed costs, leaving project proponents to raise the balance.
In a July 23 parliamentary response, the government said the Technology Development Board had approved 22 projects costing ₹4,744 crore in total, including ₹2,192 crore in RDI support. It also reported transferring ₹500 crore to the board in March.
Ministry figures for fiscal 2023-24 put India’s research and development spending at 0.84% of gross domestic product, with the private sector accounting for 51.8% of the total.
For fiscal 2025-26, a parliamentary committee recorded a ₹3,000 crore revised allocation for the fund, down from ₹20,000 crore in the initial budget. The ministry plans further rounds of manager selections but has set no date for the next decision.
