India’s ₹1 lakh crore RDI scheme has taken its first big practical step. The Research, Development and Innovation Fund (RDIF) has approved its first group of 19 fund managers, who will channel money to companies working on new technology. The fund has committed a total of ₹7,131 crore through them.
The details come from a Press Information Bureau release issued by the Ministry of Science and Technology on October 12, 2026.
What is the ₹1 lakh crore RDI scheme?
The Research, Development and Innovation (RDI) scheme was launched by Prime Minister Narendra Modi in November 2025. Its stated aim is to help India move from being a buyer of technology to a country that builds globally competitive technologies and products.
The idea is to offer long-term, “patient” money for high-risk, high-impact research and development. According to the ministry, private companies in India have long held back from investing in emerging and strategic technologies because this kind of funding was hard to find. The RDIF is meant to fill that gap.
The fund is run by an Independent Business Unit inside the Anusandhan National Research Foundation (ANRF), which sits under the Department of Science and Technology.
Who are the first 19 RDI fund managers?
The government does not hand money straight to companies. Instead, it works through what it calls Second Level Fund Managers, or SLFMs. The first cohort of 19 was approved by the Empowered Group of Secretaries at a meeting on October 8, 2026. It includes:
- 14 Alternative Investment Funds (AIFs), which are pooled investment funds
- 5 Focused Research Organisations (FROs)
- A total RDIF commitment of ₹7,131 crore
The PIB release does not name the 19 institutions or say how the ₹7,131 crore is split between them.
The selection took time. The first call for applications opened in January 2026. Applications went through a multi-stage review, including in-person meetings with an Expert Advisory Committee, before reaching ANRF’s Executive Council and then the Empowered Group of Secretaries.
How the RDI fund money will reach companies
The fund managers will invest in what the government calls Eligible Technology Enterprises. These are companies doing research and development at Technology Readiness Level (TRL) 4 and above.
There is also a matching expectation. The fund managers are expected to raise private money equal to the RDIF’s contribution. If that happens, the ₹7,131 crore could bring in a similar amount from private investors.
The Empowered Group of Secretaries also approved five more technology areas to be covered by the fund, though the release does not list them. The RDIF says it will keep inviting applications and add more cohorts of fund managers “in the near future.”
Why it matters, and the open questions
Supporters will see this as a long-awaited move. India’s private sector spends relatively little on deep research, and early-stage hardware, biotech and other “hard tech” companies often struggle to raise money because returns take years. A large, patient public fund working alongside private investors could change that.
There are fair questions too. ₹7,131 crore is about 7% of the ₹1 lakh crore headline, so most of the money is still to be committed. The release doesn’t name the fund managers, the five new technology areas or how success will be measured. The private-matching target is an expectation, not a guarantee. And because public money will pass through private fund managers, clear disclosure about where it goes will matter for public trust.
India’s wider push in technology policy is moving on several fronts, from the upcoming AI regulation consultation paper to India’s $691 billion bioeconomy roadmap. Speed matters as well, as we noted in our piece on slow-moving R&D labs.
As a writer, I feel this is one of the most important science-policy stories of the year, even if it sounds dry. Money is often what separates a good lab result from a real product. I’m hopeful, but I would like to see the list of fund managers and regular updates on where the money goes.
FAQ: RDI scheme and RDI fund
What is the RDI scheme?
It is a ₹1 lakh crore Government of India scheme, launched in November 2025, that provides long-term funding for high-risk, high-impact research and development by private companies.
How much money has the RDI fund committed so far?
The first cohort of 19 fund managers, approved on October 8, 2026, has a total RDIF commitment of ₹7,131 crore.
Can startups apply directly to the RDI fund?
The money flows through Second Level Fund Managers, who invest in companies working at Technology Readiness Level 4 and above. The RDIF says it will invite more fund manager applications soon.