The Research, Development and Innovation Fund (RDIF), or RDI Fund, announced its first cohort of 19 Second Level Fund Managers (SLFMs) on 12 October 2026, with a combined commitment of ₹7,131 crore. The cohort, cleared by the Empowered Group of Secretaries (EGoS) on 8 October 2026, has 14 Alternative Investment Funds (AIFs) and 5 Focused Research Organisations (FROs). The approval turns a ₹1 lakh crore promise into committed capital for India’s deep-tech and research-driven companies.
What Is the Research, Development and Innovation Fund?
The Research, Development and Innovation Fund (RDIF) is a ₹1 lakh crore fund under the Anusandhan National Research Foundation (ANRF). It gives long-term loans and equity, not grants, to private firms developing strategic technologies at TRL 4 and above. The Department of Science and Technology is the nodal department.
Prime Minister Narendra Modi launched the RDI Scheme on 3 November 2025, after the Union Cabinet approved it on 1 July 2025. The outlay is ₹1 lakh crore over six years, including ₹20,000 crore in FY 2025-26.
The scheme is built to pull private capital into sunrise sectors, finance capital-intensive projects at higher stages of technology readiness, support the purchase of critical technologies, and seed a Deep-Tech Fund of Funds. It does not hand out grants or short-term loans. The money is meant to behave like patient capital, with long tenures and low or nil interest.
| Detail | Position |
|---|---|
| Full name | Research, Development and Innovation Fund |
| Parent scheme | Research, Development and Innovation Scheme |
| Nodal department | Department of Science and Technology |
| Ministry | Ministry of Science and Technology |
| Host institution | Anusandhan National Research Foundation |
| Cabinet approval | 1 July 2025 |
| Formal launch | 3 November 2025 |
| Total outlay | ₹1 lakh crore over six years |
| Allocation for FY 2025-26 | ₹20,000 crore |
| Eligible projects | Technology Readiness Level 4 and above |
| Forms of support | Long-term loans, equity, Fund of Funds contributions |
| Grants and short-term loans | Not permitted |
The ANRF Connection
The Anusandhan National Research Foundation was created by the ANRF Act, 2023, which received presidential assent on 12 August 2023 and came into force on 5 February 2024. The Act subsumed the Science and Engineering Research Board, which was established by an Act of Parliament in 2008.
ANRF’s Governing Board is chaired at the highest level. The Prime Minister is the ex officio President of the Governing Board, while the Union Ministers for Science and Technology and Education serve as Vice-Presidents. The Principal Scientific Adviser is the Member-Secretary. ANRF aims to mobilise ₹50,000 crore during 2023-28, of which ₹14,000 crore is expected from the Central Government and the rest from industry, philanthropists and other non-government sources.
The RDIF is not a separate statutory body. It runs as an Independent Business Unit inside ANRF, with its own investment team. The Executive Council of ANRF gives strategic direction and recommends fund managers. The EGoS, chaired by the Cabinet Secretary, approves changes to the scheme’s scope, the sectors it covers and the selection of Second Level Fund Managers.
What Exactly Did the First Cohort Approve?
On 8 October 2026, the EGoS approved 19 SLFMs, comprising 14 AIFs and 5 FROs, with a combined RDIF commitment of ₹7,131 crore. The announcement followed on 12 October. The figure is a commitment to fund managers, not money already disbursed to companies.
The cohort is the first batch under a multi-cohort design. The government expects each SLFM to mobilise private capital equal to the RDIF contribution. If that matching happens in full, the 19 managers could deploy about ₹14,262 crore across eligible companies.
That ₹7,131 crore is roughly 7.1% of the ₹1 lakh crore corpus, committed about eleven months after the fund’s launch. The EGoS also approved five additional technologies for coverage under the RDI Fund. Their names were not disclosed in the official announcement. More cohorts are planned, and applicants who missed the first round can apply again.
| Item | Detail |
|---|---|
| Approval | EGoS meeting on 8 October 2026 |
| Public announcement | 12 October 2026 |
| Total Second Level Fund Managers | 19 |
| Alternative Investment Funds | 14 |
| Focused Research Organisations | 5 |
| RDIF commitment | ₹7,131 crore |
| Share of the ₹1 lakh crore corpus | About 7.1% |
| Private capital expected | An equal amount |
| First application call | January 2026 |
| Call closure | 31 January 2026 |
| Additional technologies | 5 approved, names not disclosed |
The 14 Alternative Investment Funds
The AIF list is dominated by venture capital firms that already back early-stage and growth-stage Indian companies. Several of them have deep-tech portfolios in areas such as space, robotics, health technology and enterprise software.
| S. No. | Approved AIF |
|---|---|
| 1 | Speciale Invest Growth Fund |
| 2 | YourNest Capital Advisors |
| 3 | Sixth Sense Ventures |
| 4 | Chiratae Ventures |
| 5 | Kalaari Capital Partners India |
| 6 | Celesta India AIF Managers |
| 7 | AdvantEdge Investment Managers |
| 8 | IvyCap Ventures Advisors |
| 9 | Ideaspring Capital Fund |
| 10 | Blume Ventures Investment Manager |
| 11 | TVS Capital Funds |
| 12 | AMA Capital Advisors |
| 13 | Translation Endeavors |
| 14 | Campus |
The 5 Focused Research Organisations
The five FROs sit within India’s academic and research ecosystem. Their role goes beyond writing cheques. They can offer laboratories, incubation space, mentoring and industry connections to companies that are still proving their technology.
| S. No. | Approved FRO | Host institution | City |
|---|---|---|---|
| 1 | AI and Robotics Technology Park (ARTPARK) | Indian Institute of Science | Bengaluru |
| 2 | Centre for Cellular and Molecular Platforms (CCAMP) | DBT-supported research platform | Bengaluru |
| 3 | IIT Madras Research Park (IITMRP) | IIT Madras | Chennai |
| 4 | Pilani Innovation and Entrepreneurship Development Society (PIEDS) | BITS Pilani | Pilani |
| 5 | Society for Innovation and Entrepreneurship (SINE) | IIT Bombay | Mumbai |
The official list does not disclose the individual allocation for each manager. The ₹7,131 crore is an aggregate commitment for the cohort.
How Does the Two-Tier Funding Structure Work?
The structure has two tiers. A Special Purpose Fund inside ANRF holds the corpus. It gives money to Second Level Fund Managers, which then finance Eligible Technology Enterprises. AIFs receive contributions as fund units, while FROs and other lenders receive low-cost loans.
Money moves from the Consolidated Fund of India into the Special Purpose Fund. From there, it goes to the SLFMs in one of two ways. For AIFs, the fund buys units in the AIF’s scheme. For FROs, DFIs and NBFCs, the fund provides long-term loans at low interest.
The SLFMs then take the money to companies. An AIF usually puts equity into a startup. A FRO may lend to a company, fund a project or combine financing with incubation support. The final recipient must be an Eligible Technology Enterprise, which is a legal entity working on RDI-intensive technology at TRL 4 or higher.
| Tier | Entity | Main function |
|---|---|---|
| First level | Special Purpose Fund under ANRF | Holds the corpus received from the Consolidated Fund of India |
| Second level | SLFMs such as AIFs, FROs, DFIs and NBFCs | Select and finance eligible companies within their approved mandate |
| Final recipient | Eligible Technology Enterprises | Companies and startups developing technology at TRL 4 and above |
The design keeps project selection at arm’s length from the government. The SLFM’s investment committee, not a ministry, chooses which companies get money. The government sets the sectors, the eligibility rules and the overall guardrails.
There are hard limits. RDIF support cannot exceed 50% of the total project cost or funding round. The remaining cost must come from the company, its promoters or commercial investors. In exceptional cases, or in strategic sectors, the EGoS can relax this cap.
The scheme also allows contributions to a Deep-Tech Fund of Funds or other RDI-focused fund of funds. The corpus for this vehicle is not fixed in advance. It will depend on the quality of proposals and demand during implementation.
Why Does India Need the Fund, and Which Sectors Does It Cover?
India spends less than 1% of GDP on research and development, well below major economies. Private firms often avoid the TRL 4 to 6 stage, where a laboratory prototype needs costly validation but is not yet commercially safe. The fund fills that gap.
The R&D Gap
India’s Gross Expenditure on Research and Development (GERD) was ₹2,44,767.81 crore in 2023-24, or 0.84% of GDP, according to the latest Department of Science and Technology statistics. The private sector’s share rose to 51.8% that year, up from 33.8% in 2019-20. The trend is healthy, but the overall level remains small for an economy of India’s size.
The comparison with other economies is stark. The United States spends about 3.5% of GDP on R&D, China about 2.4% and South Korea about 4.9%. India’s Global Innovation Index rank improved from 81 in 2015 to 38 in 2025, which shows progress in the innovation ecosystem. It does not close the financing gap for hardware, deep science and capital-intensive manufacturing.
The TRL 4 Starting Line
Technology Readiness Level (TRL) is a nine-point scale used to measure how close a technology is to real-world use. A low TRL means the idea is still in the lab. A high TRL means the product is proven in the market.
| TRL band | What it means | Typical stage |
|---|---|---|
| TRL 1 to 3 | Basic principles observed, concept formulated, experimental proof of concept | Curiosity-driven or early applied research |
| TRL 4 to 6 | Technology validated in a lab, then in a relevant environment, then demonstrated as a prototype | Applied research, pilot testing and early commercial validation |
| TRL 7 to 9 | Prototype demonstrated in an operational environment, system qualified, actual system proven | Market deployment and scale-up |
ANRF supports research up to TRL 4. The RDI Scheme begins at TRL 4 and carries the technology towards the market. This is the stage investors often call the valley of death. A company has spent years on research, but it still needs expensive testing, certification, pilot plants and customer trials before a commercial lender or a mainstream venture fund will commit serious money.
Five Sunrise Sectors
The scheme funds projects in five broad sunrise sectors. It also covers technologies that are important for strategic reasons, economic security or Atmanirbhar Bharat, along with any other area the government considers necessary in the public interest.
| Sector | What it covers | Indicative examples |
|---|---|---|
| Energy security and transition | Clean energy, storage, climate action and critical minerals | Next-generation solar cells, offshore wind systems, battery materials, rare earth processing |
| Deep technology | Quantum computing, robotics, space and advanced manufacturing | Quantum hardware, space payloads, industrial robotics, neuromorphic chips |
| Artificial intelligence | AI built for Indian problems in agriculture, health and education | Local-language models, diagnostic tools, precision farming |
| Biotechnology and health | Biomanufacturing, synthetic biology, pharmaceuticals and medical devices | Vaccines, biologics, implants, advanced diagnostics |
| Digital economy | Digital public infrastructure and digital agriculture | Open-source DPI modules, agri data platforms, secure cloud systems |
Any ministry can propose a new technology for inclusion. The Department of Science and Technology examines the proposal, and the EGoS takes the final call. In October 2026, the EGoS approved five additional technologies, but their names were not made public in the announcement.
What Are Alternative Investment Funds and Focused Research Organisations?
Alternative Investment Funds are privately pooled investment vehicles registered with SEBI. Focused Research Organisations are publicly funded research or academic bodies with a specialised technology mission. Both can act as Second Level Fund Managers, but AIFs usually invest equity while FROs lend and incubate.
What Are Alternative Investment Funds?
AIFs are governed by the SEBI (Alternative Investment Funds) Regulations, 2012, which were notified on 21 May 2012. They pool money from sophisticated investors such as high-net-worth individuals, family offices, institutions and corporations. They are not retail products like mutual funds, and they carry a much higher risk of loss.
The regulations place AIFs in three categories.
| Category | Investment focus | Key features |
|---|---|---|
| Category I | Startups, early-stage ventures, SMEs, social ventures and infrastructure | Close-ended; eligible for government incentives; includes venture capital, angel and infrastructure funds |
| Category II | Private equity, debt funds and fund of funds | Close-ended; cannot use leverage beyond routine operations |
| Category III | Hedge funds and funds using complex trading strategies | Can be open-ended or close-ended; may use leverage and derivatives |
An AIF must register with SEBI before it can operate. It cannot change its category later without SEBI’s approval. For the RDI Scheme, this regulatory layer matters. It gives the government a ready set of professional managers who already have investment committees, due diligence processes and a track record of backing risky companies.
The 14 AIFs in the first cohort include some of the better-known names in Indian venture capital. Chiratae Ventures, Blume Ventures, Kalaari Capital, Speciale Invest, YourNest Capital, IvyCap Ventures, Ideaspring Capital, TVS Capital Funds and Sixth Sense Ventures are among the selected managers.
What Are Focused Research Organisations?
The RDI guidelines define FROs as statutory organisations, public institutions, or academic, research and non-profit bodies funded by the Central or State Governments, with a specialised focus on particular technologies, sectors or innovation functions. They are not ordinary venture funds. Their value lies in laboratories, prototyping facilities, incubation programmes and close links with industry and academia.
Five FROs are part of the first cohort. ARTPARK at the Indian Institute of Science works on artificial intelligence and robotics. CCAMP in Bengaluru supports biotechnology and life sciences startups. IIT Madras Research Park is India’s first university-based research park. PIEDS at BITS Pilani and SINE at IIT Bombay run incubation and entrepreneurship programmes.
Two FROs were already working with the fund before this cohort. The Technology Development Board (TDB) and the Biotechnology Industry Research Assistance Council (BIRAC) were nominated as SLFMs, with ₹1,000 crore sanctioned to each.
AIFs and FROs at a Glance
| Feature | Alternative Investment Fund | Focused Research Organisation |
|---|---|---|
| Nature | Privately pooled investment fund | Public, academic or non-profit research body |
| Regulatory or scheme oversight | SEBI registration and regulations | Government oversight through ANRF and the EGoS |
| RDIF funding route | Contribution to fund units | Long-term loan |
| Typical support to companies | Equity or equity-linked capital | Debt, project finance and incubation support |
| Main strength | Investment discipline and private networks | Laboratories, prototyping and industry-academia links |
| Examples in the first cohort | Blume Ventures, Kalaari Capital, Chiratae Ventures | ARTPARK, CCAMP, IIT Madras Research Park |
How Were the 19 Fund Managers Selected?
The first call opened in January 2026 and closed on 31 January. Applications were scored objectively, discussed with an Expert Advisory Committee, examined by the ANRF Executive Council, and finally approved by the EGoS. TDB and BIRAC were nominated earlier.
The Selection Gauntlet
The process was designed to test more than the size of a fund. Applicants had to show a track record in deep-tech investing, a credible team, strong governance and an investment thesis that matched the RDI Scheme’s sectors. They also had to explain how they would raise private capital alongside the government’s contribution.
Applications came from venture capital firms, research organisations and other eligible institutions across the country, but the official release did not disclose the exact number of applications. Each applicant went through an objective assessment, followed by in-person interactions with the Expert Advisory Committee. The ANRF Executive Council then reviewed the shortlist before sending it to the EGoS.
This layered process matters because the government is delegating public money to private managers. The EGoS approves the manager, but the manager chooses the companies. That separation is meant to keep political and bureaucratic discretion out of individual investment decisions.
Safeguards Against Conflict of Interest
The RDI guidelines require every SLFM to have an Investment Committee with a mix of technical and financial experts from industry, academia and finance. The committee must be constituted in a way that avoids conflicts of interest. Members with a financial interest in a proposal are expected to stay out of that decision.
A market test comes from the 50% funding cap. A promoter who cannot raise the other half from private investors has to convince an independent investment committee that the project is worth backing. The government’s exposure is limited, and private capital carries part of the risk.
Governance has also drawn attention. Early projects backed directly by TDB faced questions about overlaps between selection panel members and the companies that received money. The government has cited safeguards such as a 10% stake disqualification, super-majority approvals and mandatory disclosure of interests. Independent audits will be important as the fund scales.
Early Projects Under the Fund
The TDB and BIRAC routes show how the money is already moving. TDB received ₹1,000 crore, of which ₹500 crore was disbursed in March 2026. By July 2026, TDB had approved 22 projects with a total project cost of ₹4,744 crore, involving RDI Fund support of ₹2,192 crore. BIRAC had shortlisted 8 projects involving ₹390.35 crore in RDI support.
A recent example is QNu Labs, a Bengaluru-based quantum technology company. In October 2026, TDB signed an agreement to provide ₹150 crore for a project with a total cost of ₹300 crore. The money will support an indigenous quantum-secure communication and sensing network, moving the technology from TRL 4 and 5 towards TRL 9. The support is structured as Optionally Convertible Debt, which can turn into equity later.
What Does the First Cohort Mean for India’s Deep-Tech Ambitions?
The first cohort can deploy ₹7,131 crore of public money and expects an equal amount from private investors, potentially creating a ₹14,262 crore pool. It signals that government capital will now take early-stage technology risk alongside venture funds.
Why It Matters
For AIFs, the RDIF is anchor capital. A fund manager can show a government commitment to private investors and use it to raise the rest of the corpus. That is especially useful for deep-tech funds, which often struggle to attract domestic limited partners because their investment cycles are long and their failure rates are high.
FROs, by contrast, get a chance to scale. Institutions such as IIT Madras Research Park and CCAMP already incubate startups. RDIF funding lets them back companies for longer, build shared testing facilities and connect researchers to industrial customers.
The strategic case goes beyond finance. India imports a large share of its advanced machinery, specialty materials, medical devices and defence electronics. The RDI Fund is designed to reduce that dependence and build indigenous capability in technologies that matter for economic security. It fits the broader push for Atmanirbhar Bharat and the Viksit Bharat 2047 goal.
The fund also creates a working template. The government sets the sectors and the guardrails. Private managers select the companies. Both sides share the risk. If the model works, it can be repeated in other areas where public goals and private capital need to move together.
What Could Go Wrong
The first cohort’s commitment is only about 7.1% of the corpus. The hard part is deployment. Deep-tech deals are few, slow and heavy on due diligence. The 19 managers will need a steady pipeline of credible companies, especially outside Bengaluru, Mumbai and Delhi.
Follow-on capital is another test. RDIF money can take a company from TRL 4 to a working prototype, but the company still needs customers, manufacturing partners and later-stage investors. If that ecosystem does not grow, the fund will create good prototypes without commercial scale.
Repayment and returns also matter. The scheme gives low-interest loans to high-risk projects. Some will fail. The rules for losses, recoveries and recycling of capital will determine whether a few failures stall the programme.
Governance will remain under watch. The first cohort’s selection process was rigorous, but public trust depends on independent audits, transparent conflict-of-interest rules and consistent disclosure of how individual managers perform.
The geographic spread is a related concern. The five FROs are clustered in established academic hubs. Whether the AIFs source deals from Tier 2 and Tier 3 cities will decide how widely the fund’s benefits travel. The government has said the scheme is not State-specific and that projects are judged on merit, not location.
How RDI Differs From Other Funding Routes
The RDI Fund complements ANRF and the startup fund of funds. ANRF supports early research. The Fund of Funds for Startups and Startup India FoF 2.0 build the venture capital pipeline. RDI fills the middle, where a technology has proof but not yet a market.
| Route | Who runs it | Stage covered | Form of support | Corpus |
|---|---|---|---|---|
| ANRF | ANRF and DST | Up to TRL 4 | Research grants | ₹50,000 crore for 2023-28 |
| RDI Fund | DST and ANRF | TRL 4 and above | Long-term loans, equity and Fund of Funds contributions | ₹1 lakh crore over six years |
| Fund of Funds for Startups | SIDBI, monitored by DPIIT | Early to growth-stage startups | Equity through SEBI-registered AIFs | ₹10,000 crore, set up in 2016 |
| Startup India FoF 2.0 | SIDBI | Early-stage and deep-tech startups | Equity through AIFs | ₹10,000 crore, announced in April 2026 |
The RDI Scheme is also different because it does not pick individual companies at the central level. It picks managers, and the managers pick companies. That is a deliberate choice. It brings private-sector judgement into public funding, but it also makes the quality of those managers the single biggest variable in the programme.
The Way Forward
The RDIF will keep inviting applications and onboarding new cohorts of SLFMs. The five additional technologies cleared by the EGoS will widen the scope of projects that can be funded. The Deep-Tech Fund of Funds is the other piece to watch, since it can bring a second layer of private capital into the system.
Converting commitments into investments is the immediate task. Each manager now has to build a pipeline, run due diligence and disburse money to companies that can use it well. The government will need to track how much money reaches companies and what those companies build, alongside the headline commitment figures.
The real test will be commercial. A successful RDI Fund should produce technologies that reach TRL 7 to 9, win customers, create jobs and reduce India’s import bill in strategic sectors. It should also leave behind a stronger private market for deep-tech finance, so that later-stage investors are willing to fund what the government helped prove.
This first cohort is a start, not a verdict. Its value lies in the template it sets, where long-term public capital is paired with professional private management.
Key Takeaways
- The first cohort of 19 Second Level Fund Managers, approved by the EGoS on 8 October 2026 and announced on 12 October 2026, has 14 AIFs and 5 FROs with a combined RDIF commitment of ₹7,131 crore.
- The RDI Scheme has a corpus of ₹1 lakh crore over six years, was approved by the Union Cabinet on 1 July 2025 and launched on 3 November 2025.
- The scheme is implemented by the Department of Science and Technology through a Special Purpose Fund inside the Anusandhan National Research Foundation.
- RDIF support is for projects at TRL 4 and above, capped at 50% of project cost or funding round, and is given as loans or equity, not grants.
- The first cohort is expected to mobilise private capital equal to the RDIF contribution, potentially creating a ₹14,262 crore pool; TDB and BIRAC were the first nominated SLFMs with ₹1,000 crore sanctioned to each.
- The EGoS also approved five additional technologies for coverage under the RDI Fund in October 2026.
