India has launched an unprecedented incentive to boost science, technology, and innovation by offering unsecured, interest-free loans to the private sector, an approach rarely seen even in advanced economies. The initiative was formally kick-started this month in New Delhi during a large outreach programme, where Science and Technology Minister Jitendra Singh directly engaged with over 500 private-sector professionals in an open Q&A session.
At the core of the effort is a Rs 1 lakh crore ($12 billion) interest-free loan extended to the Anusandhan National Research Foundation (ANRF) to drive private-sector research and development. Of this, Rs 20,000 crore has been earmarked for FY 2025–26. The only condition is a matching financial contribution from the applicant, ensuring shared risk and commitment.
Approved by the Union Cabinet on July 1, the Research, Development, and Innovation (RDI) Fund aims to bridge the critical “valley of death” between laboratory research and commercial products. It focuses on deep-tech and sunrise sectors such as quantum computing, AI, biotechnology, clean energy, semiconductors, and medical technologies.
Prime Minister Narendra Modi described the fund as patient capital for high-risk, high-impact projects, stressing that it is meant to empower innovators, not subsidise routine work. With improving global innovation rankings, the RDI Fund signals a decisive shift toward positioning India as a global innovation powerhouse.
