Syllabus:
GS-3: Achievements of Indians in science & technology; indigenization of technology and developing new technology.
Context:
Recently, Prime Minister of India launched the ₹1 lakh crore RDI Fund at the first-ever Emerging Science Technology and Innovation Conclave (ESTIC) that brings together policy makers, innovators and global visionaries to drive the government’s Viksit Bharat 2047 vision.
More on the News
- Prime Minister of India also launched a coffee table book on scientific achievements of India and a vision document for science and technology.
Key Facts
The RDI Scheme was approved by the Union Cabinet on 1 July 2025.
It is aimed at mobilising ₹1 lakh crore over the coming years for research, development and innovation (RDI) in strategic and sunrise domains, encouraging private-sector led R&D, especially in high-risk and high-impact projects.
The Department of Science and Technology (DST) is the nodal ministry of the RDI Fund that will operate through a two-tiered funding structure.
- At the first level, a Special Purpose Fund (SPF) will be established within the Anusandhan National Research Foundation (ANRF), which will serve as the custodian of the ₹1 lakh crore corpus.
- The Fund will not directly invest in industries and start ups but will channel capital to second-level fund managers, who can be Alternative Investment Funds (AIF), Development Finance Institutions (DFI), Non-banking Finance Companies (NBFCs), among others.
Significance of the Scheme
- Ease of Doing Research: The RDI scheme offers long-term, low or no-interest financing for transformative R&D projects.
- Focus on Self-Reliance: The initiative aligning with Atmanirbhar Bharat, supports acquiring strategic technologies and building capabilities in sectors like AI, biotech, quantum, and semiconductors.
- Private Sector and Risk Capital: With strong public R&D but modest private participation, the scheme targets private firms and high-TRL projects to boost innovation.
- Vision for Development: The initiative supports India’s goal of Viksit Bharat by 2047 through next-gen technologies and economic self-reliance.
Challenges Faced by Private Sector in Research and Development
- Intellectual Property (IP) Concerns: Slow patent approvals, weak enforcement, and high litigation costs discourage innovation, affecting revenue generation in sectors like pharmaceuticals and software.
- Infrastructure and Cost Barriers: High costs of setting up advanced labs (semiconductors, biotech) and limited access to government-funded facilities restrict R&D activities.
- Weak Industry-Academia Collaboration: Lack of trust and alignment between academia and industry impedes effective partnerships.
- Market and Funding Issues: Early-stage and deep-tech innovations suffer from low commercial viability, leading to underfunding in the critical “valley of death” phase.
Way Forward
- Strengthen Industry-Academia Collaboration: Promote partnerships and joint ventures between research institutions and industry to translate research into market-ready products. Create Centres of Excellence and encourage tech transfer mechanisms.
- Build Talent and Entrepreneurship Ecosystem: Invest in STEM education, skill development, and create an ecosystem that nurtures risk-taking and entrepreneurship to retain and attract top research talent.
- Enhance Accountability and Evaluation: Set up robust monitoring and evaluation frameworks to ensure effective use of funds and alignment with national priorities, ensuring research outputs deliver economic and societal impact.