India Opens ₹1 Lakh Crore RDI Fund to Boost Deep-Tech Innovation

India has taken a major step to strengthen its innovation ecosystem as the Technology Development Board (TDB) announced the first call for proposals under the Research, Development and Innovation (RDI) Fund. This move marks the formal rollout of the ₹1 lakh crore fund launched last year to support advanced and market-ready technologies.

Applications will be accepted on a rolling basis, with priority given to critical sectors such as energy security and clean energy transition, artificial intelligence and its applications, quantum computing, robotics, and space technologies. Along with the Biotechnology Industry Research Assistance Council (BIRAC), TDB has been nominated by the government as a second-level fund manager for the RDI Fund.

To be eligible, start-ups and companies must be headquartered in India, have majority domestic ownership, and ensure that all intellectual property and patents are registered within the country. The fund is aimed at projects with Technology Readiness Level (TRL) 4 and above, meaning it supports innovations that have moved beyond early ideas and laboratory concepts.

According to TDB, proposals will be evaluated within eight weeks of submission, and approved funds will be released within 12 weeks of evaluation. An investment committee comprising industry experts and members from the investment community will assess the proposals. Funding will be provided through multiple routes, including low-interest loans, equity investments, or instruments such as optionally or compulsorily convertible debentures. Loan support may carry an interest rate of 3–4 per cent with a tenure of up to 12–15 years.

The RDI Fund can finance up to 50 per cent of the approved project cost, while the remaining amount must be arranged by the applicant through internal resources or commercial funding. As part of the initial rollout, TDB has received ₹2,000 crore from the Special Purpose Fund under the Anusandhan National Research Foundation.

The government plans to appoint additional fund managers in the coming months to accelerate deployment. In Budget 2026, the RDI Fund received an additional ₹20,000 crore allocation, reaffirming the government’s long-term commitment to building a strong, self-reliant innovation and deep-tech ecosystem in India.

Source: Business Standard