₹1 Lakh Crore Research, Development and Innovation (RDI) Scheme Fund

Context:
The Prime Minister launched the ₹1 Lakh Crore Research, Development and Innovation (RDI) Scheme Fund during the Emerging Science, Technology and Innovation Conclave (ESTIC) 2025 in New Delhi, aiming to strengthen India’s innovation ecosystem and accelerate progress towards self-reliance and economic security.

Key Highlights:

Scheme Outlay and Implementation:
• Total outlay of ₹1 lakh crore over 6 years.
₹20,000 crore allocated for FY 2025–26.
• Funded from the Consolidated Fund of India.
Department of Science and Technology (DST) is the nodal department for implementation.

Governance Structure:
• The Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide strategic direction.

Core Objectives:
• Encourage the private sector to scale up Research, Development and Innovation (RDI) in:

  • Sunrise sectors

  • Domains critical for economic security and strategic purposes
    • Finance transformative projects at higher Technology Readiness Levels (TRLs).
    • Support acquisition of critical and strategic technologies.
    • Facilitate the creation of a Deep-Tech Fund of Funds.

India’s R&D Landscape:
• India’s R&D expenditure: ~0.7% of GDP.

  • USA: 2.8% of GDP

  • China: 2.4% of GDP
    • India’s R&D spending has doubled in the last decade, but remains below global leaders.
    • Private sector contribution: <40% of total R&D spending.

  • Advanced economies: >70% private contribution.

Major Government Initiatives Boosting R&D:

Institutional Frameworks:
National Research Foundation (NRF) – Promotes academia-industry collaboration.
Atal Innovation Mission (AIM) – Supports startups and entrepreneurship.
Production Linked Incentive (PLI) Scheme – Promotes R&D-driven manufacturing.

National Missions:
National Quantum Mission – ₹6,003.65 crore.
India Semiconductor Mission – ₹76,000 crore.
Deep Ocean Mission – ₹4,077 crore.
India AI Mission – ₹10,372 crore.
Electric Vehicle Mission (under ANRF–MAHA Programme).

Policy Frameworks:
Geospatial Policy 2022
Space Policy 2023
BioE3 Policy 2024 (Biotechnology for Economy, Environment and Employment)

Challenges in India’s R&D Ecosystem:

Limited University–Industry Collaboration leading to weak commercialization.
Fragmented institutional ecosystem with overlapping mandates.
Skilled workforce deficit, especially in deep-tech and interdisciplinary domains.
• Low private sector participation in R&D spending.

Relevant Prelims Points:

RDI Scheme Fund:

  • ₹1 lakh crore over 6 years.

  • Nodal agency: DST.

  • Strategic oversight: ANRF Governing Board chaired by PM.

  • Funded via Consolidated Fund of India.

Technology Readiness Levels (TRL):

  • Scale used to measure maturity of technology from research to commercialization.

Key Missions & Allocations:

  • Semiconductor Mission – ₹76,000 crore.

  • Quantum Mission – ₹6,003.65 crore.

  • AI Mission – ₹10,372 crore.

  • Deep Ocean Mission – ₹4,077 crore.

Issue & Causes:

  • Low R&D spending (0.7% of GDP).

  • Insufficient private sector participation.

  • Weak academia-industry linkages.

Benefits:

  • Boost to deep-tech innovation.

  • Strengthened strategic autonomy.

  • Increased economic competitiveness.

Challenges:

  • Talent shortage.

  • Institutional fragmentation.

  • Funding inefficiencies.

Relevant Mains Points:

Strategic Importance:
• RDI is central to achieving Atmanirbhar Bharat and Viksit Bharat 2047.
• Enhances economic security, reduces import dependence, especially in critical technologies.

Institutional Architecture:
• Role of ANRF in consolidating research funding.
• Importance of DST as nodal agency.
• Need for coordinated action between ministries and research bodies.

Comparative Perspective:
• India’s R&D spending (0.7%) is significantly below global innovation leaders.
• Advanced economies rely heavily on private sector-driven innovation ecosystems.

Structural Issues:
• Commercialization gap between lab-to-market.
• Need for stronger IPR ecosystem.
• Regional concentration of innovation in metro cities.

Way Forward:
• Enhance global collaborations under:

  • Indo-US iCET

  • G20 S&T Cooperation

  • BRICS Innovation Network
    • Introduce performance-based funding mechanisms.
    • Promote regional innovation clusters in Tier-II and Tier-III cities.
    • Improve skill development in AI, Quantum, Semiconductor, Deep-Tech sectors.
    • Encourage higher private sector R&D investment through fiscal incentives.

UPSC Relevance (GS-wise):
GS Paper III: Science & Technology, Innovation, Economic Development.
GS Paper II: Governance mechanisms in science policy.
Prelims: RDI Scheme features, DST, ANRF, TRL concept, National Missions and budget allocations.

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