India’s Deep Tech Dreams Just Got a ₹1 Trillion Launchpad
India’s deep-tech ecosystem has been abuzz with activity in recent months, ranking sixth in terms of performance and strength when compared to the top eight globally. The AI wave has only accelerated its rise. From ministers to startup founders and venture capitalists, the potential of this domain has left everyone impressed. The majority of discussions have focused on semiconductors, space technology, quantum computing, and telecommunications. Though still in its infancy, robotics, including autonomous vehicles and healthcare, has also come to the forefront in the past few years. Adding to this bustle, the Union cabinet, on July 1, approved the Research, Development, and Innovation (RDI) Scheme, which aims to scale up private sector participation in research and innovation across strategic and emerging domains. The scheme, backed by a ₹1 lakh crore corpus, is poised to offer long-term financing or refinancing at low or nil interest rates. Chaired by Prime Minister Narendra Modi, the cabinet’s decision aims to address critical funding constraints in sunrise sectors, including AI, quantum technologies, semiconductors, defence, and space. The Department of Science and Technology (DST) will serve as the nodal agency for implementing this. The scheme is designed to strengthen India’s push towards technological self-reliance and global competitiveness by 2047. Today’s Cabinet decision relating to Research Development and Innovation (RDI) Scheme will be a game changer in the world of research and innovation. This scheme, with a corpus of Rs. 1 lakh crore will have a major impact on emerging and sunrise sectors. It will also boost…— Narendra Modi (@narendramodi) July 1, 2025 Light on the Private Sector The scheme places a strong emphasis on encouraging private players to invest in higher levels of Technology Readiness Levels (TRLs), acquire critical technologies, and build a pipeline of commercially viable innovations. The country’s deep-tech sector is finally finding the direction it has long waited for. Space-tech startups stand to gain the most from the RDI Scheme, which offers concessional loans and a dedicated deep-tech fund. Srinath Ravichandran, co-founder and CEO of space-tech startup Agnikul Cosmos, said, “The announcement of direct financial support for R&D is unprecedented at this scale. This shows that the government believes in the deep-tech potential in India.” The initiative comes as India positions itself for Viksit Bharat 2047, its long-term vision of becoming a developed nation. The government hopes the scheme will catalyse private innovation, attract long-term capital, and enable the commercialisation of sovereign technologies. The RDI Scheme introduces a two-tiered funding structure. At the first level, a Special Purpose Fund (SPF) will be established within the Anusandhan National Research Foundation (ANRF). This fund will allocate resources to second-level fund managers, who will finance eligible R&D projects. These will primarily be concessional loans, though equity investments may also be considered for startups. Deep Tech Takes Off Anil Kumar Bhatt, director general of the Indian Space Association (ISpA), underscored the momentum within the sector saying, “The provision of concessional loans, equity support, and the proposed deep-tech fund is expected to provide a critical financial boost to Indian space-tech startups, enabling accelerated development, deployment, and commercialisation of cutting-edge technologies.” He also expressed confidence that space-based research and deep-tech innovation will play a prominent role within the scheme’s ambit. It’s not just him; Indian deep-tech investors nod to this, too. “This move will empower our brightest innovators, attract long-term capital, and accelerate the development of sovereign technologies critical to both economic and strategic resilience,” said Vishesh Rajaram, managing partner at Speciale Invest. Previously, in an exclusive interview, his co-founder and general partner, Arjun Rao, told AIM, “Our deep-tech ecosystem is only 6–8 years old, but we’re beginning to see an explosion.” His firm has backed high-potential companies across various sectors, including space, semiconductors, and quantum. In semiconductors alone, senior engineers with two decades of experience are leaving MNCs to build India-first chip design startups. “We already have the talent. Now, with early capital and patient capital, we can build our own SpaceX or Palantir,” Rao added. The RDI Scheme’s structure enables investors like these to remain committed through the high-risk 0-to-1 phase. Oversight and Long-term Direction The ANRF governing board, chaired by the Prime Minister, will provide strategic guidance to the scheme. The executive council of ANRF, led by principal scientific adviser Ajay Kumar Sood, will finalise operational guidelines and recommend project types and second-level fund managers. Additionally, an Empowered Group of Secretaries (EGoS), chaired by the cabinet secretary, will monitor the performance and evolution of the scheme. The Deeptech Fund of Funds (FoF) is a key element within the RDI Scheme, designed to enhance capital access for high-potential deep-tech innovations. Contributions to other funds aligned with RDI goals could also be permitted. By creating an innovation-friendly funding structure, the RDI Scheme marks a shift in the country’s approach to tech development, from government-led initiatives to one that actively empowers private enterprise.
Union cabinet approved the Research, Development, and Innovation (RDI) Scheme, to scale up private sector across domains.
Union cabinet approved the Research, Development, and Innovation (RDI) Scheme, to scale up private sector across domains.
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["AI", "Aim", "RAG", "R", "Go", "API", "ViT", "innovation", "startup", "venture capital"]
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