CIO Tech Outlook Team | Wednesday, 02 July 2025, 14:21 IST
The Union Cabinet has approved a Rs 2.07 trillion budget for the Research, Development, and Innovation (RDI) Scheme and the Employment-linked Incentive (ELI) scheme. This funding is a substantial step towards fostering innovation and job creation, and both schemes were recommended in the 2024-25 Union Budget. These schemes aim to enhance the government's legislation to facilitate private sector innovation while also generating over 35 million jobs over the next two years.
The ELI scheme is distinct from the RDI as it will provide a sustained period of funding of Rs 1.07 trillion for the period from August 2025 until July 2027. This is part of the broader Prime Minister Employment Initiative, which sought to directly target 41 million youth and also it focused on creating jobs by (1) giving adequate incentives for job creation and (2) such that job creation was accompanied by structured support in the area of skill development.
The RDI scheme specifically targets sunrise sectors in areas like quantum computing, AI, robotics, energy transition, and biotechnology while providing long-term support through concessional and low interest financing via Anusandhan National Research Foundation (ANRF) which is chaired by the Prime Minister and financed by interest-free loans for a 50 year maturity.
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Loan financing must not exceed half the total amount of any individual project's funds. The funding through ANRF will be through concessional loan financing for fund managers through AIFs, DFIs, and NBFCs that undertake innovation funding on behalf of the institutions which they represent.
The RDI program also incorporates a Deep-Tech Fund of Funds to support high-impact technologies and to facilitate the acquisition of strategic technology assets. According to Ashwini Vaishnaw, Minister of Information and Broadcasting, the program rectifies India's historically low R&D investments and is a part of a larger effort to attract private investment in high-technology sectors.
The ANRF Governing Board will advise on strategic decisions; the Australian National Research Fund (ANRF) Executive Council, along with an Empowered Group of Secretaries, will implement the program plan and make adjustments to the scope of the program, sectors, and types of projects.
