Prime Minister Narendra Modi is poised to introduce a Rs.1 lakh crore fund for Research, Development and Innovation (RDI) intended to position India as a worldwide center for deep-tech and artificial intelligence (AI) research.

The initiative aims to enhance private-sector involvement in advanced innovation by offering long-term loans with low or no interest instead of conventional grants. The initiative will be managed by the Anusandhan National Research Foundation (ANRF) within the Department of Science and Technology (DST), representing one of India's largest investments in technological progress and research so far.

The RDI fund will mainly focus on sectors involved in vital and emerging technologies, including AI, quantum computing, semiconductors, biotechnology, and advanced materials. The government aims to connect early-stage innovation with commercialization by offering what it refers to as “patient capital.”

This type of financing enables research-heavy initiatives to develop without the immediate financial stresses commonly linked to venture capital. In the initial phase, the government has set aside Rs. 20,000 crore for the financial year 2025–26, and implementation is anticipated to extend over the next six to seven years.

Officials and specialists assert that the initiative might greatly enhance India's innovation production and international competitiveness. Presently, India allocates approximately 0.8 percent of its GDP towards research and development—significantly lower than nations such as the United States and China.

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The RDI fund seeks to encourage cooperation among academia, startups, and industry by leveraging private investments through government-supported financing, thereby fostering an environment that nurtures local innovation in advanced technologies. This action also corresponds with India’s wider goal of attaining technological independence and prominence in the AI and deep-tech industries.

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The fund's success will rely on effective execution, clear governance, and engaged involvement from the private sector. Analysts warn that past R&D initiatives encountered insufficient use of funds and administrative holdups. Timely fund allocation, efficient project oversight, and quantifiable outcomes will be essential for turning this bold initiative into concrete achievements.

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If executed effectively, the RDI initiative could enhance India’s research abilities, create jobs, draw international collaborations, and establish India as a leading innovator in the AI-driven global market.