PM Modi launches RDI fund

PM Modi launches RDI Fund: Prime Minister Narendra Modi on Monday launched the Research, Development and Innovation (RDI) Fund, whose corpus (total amount) is Rs 1 lakh crore. This decision is going to encourage the private sector to invest on a large scale in research and development (R&D) in the country. This announcement was made during the first Emerging Science Technology and Innovation Conclave (ESTIC). On the occasion, the Prime Minister also launched a wonderful coffee table book on Indian scientific achievements and a vision document for science and technology.

#WATCH Delhi: Prime Minister Narendra Modi inaugurated the Emerging Science, Technology and Innovation Conference (ESTIC) 2025 at Bharat Mandapam in New Delhi.

Prime Minister launches Rs 1 lakh crore Research Development and Innovation (RDI) Scheme Fund. The objective of this scheme is to provide private pic.twitter.com/SWa8Lu7IuD

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The money will not go directly to the industry

RDI Fund will not invest money directly in any industry or startup, this is its biggest specialty. A two-tiered funding structure has been created for its operation, so that transparency and expertise is maintained. At the first level, a Special Purpose Fund (SPF) will be set up under the Research National Research Foundation (ANRF). This fund will be the custodian of a corpus of Rs 1 lakh crore. This SPF will provide money to the second tier of fund managers. Its fund managers can be Alternative Investment Funds (AIFs), Development Finance Institutions (DFIs), Non-Banking Financial Companies (NBFCs) and other such financial institutions.

The investment decision will not be taken by the government, but by a team of experts

These fund managers will be responsible for recommending the investment of the fund. They will give their recommendations through an Investment Committee. This committee will include high-level experts from financial, business and technical fields. The most important thing is that these committees will work in an independent (arm's length) manner from the government. This means that the decision on where the funds will be invested will be taken purely on the basis of commercial and technical parameters, away from political or government interference. This arrangement will ensure that investment is made only in the best and most effective research projects. The Department of Science and Technology (DST) has been made the nodal ministry of this RDI fund, which will take over the responsibility of overall coordination.

What is the benefit to the common man?

When private investment in research and development increases, it will have a direct impact on the quality of products and services produced in the country. New technologies and cheaper, better products will come to market. For example, better and lower-cost equipment in healthcare, improved seeds and machinery for farming, or new, high-tech opportunities for employment, all will be the result of research and innovation.