India Unveils ₹1 Lakh Crore Innovation Fund to Power Clean Tech and Deep-Tech Leadership – EQ
In Short : India has launched a ₹1 lakh crore Research, Development & Innovation (RDI) scheme to boost private-sector innovation in clean energy, green hydrogen, semiconductors, and deep-tech. Funded via concessional capital through ANRF, the initiative addresses low R&D investment and supports startups, MSMEs, and corporates, aiming to drive India’s transition from a technology consumer to a global innovation leader.
In Detail : India has announced a ₹1 lakh crore Research, Development & Innovation (RDI) scheme aimed at boosting innovation in critical and emerging sectors. Approved on July 1, 2025, the initiative is designed to catalyze private-sector participation in areas like clean energy, green hydrogen, semiconductors, biotechnology, and artificial intelligence. It marks one of the largest state-led R&D drives in recent years.
The scheme will operate through a Special Purpose Fund under the Anusandhan National Research Foundation (ANRF), which will be chaired by the Prime Minister. Funding will be disbursed via second-level fund managers in the form of concessional loans and equity. Oversight will be provided by an empowered group of secretaries to ensure strategic alignment and transparent execution.
India has long faced criticism for underinvesting in research and development, with national spending remaining below 1% of GDP. This program seeks to reverse that trend by offering long-term, low-risk capital that can support high-gestation projects where private capital has traditionally hesitated. By addressing this gap, the scheme hopes to unlock substantial technological and economic gains.
The RDI scheme’s focus areas are technology domains with commercial and strategic potential. These include advanced energy storage systems, high-efficiency solar modules, offshore wind, carbon capture, grid integration, and deep-tech innovation. These sectors are seen as vital to achieving India’s energy transition goals and ensuring global competitiveness in future technologies.
Industry experts have welcomed the move as a game-changer for India’s innovation ecosystem. It signals the government’s intent to evolve from an importer and consumer of technology to a global hub of research, development, and production. The initiative is also aligned with India’s targets of achieving 500 GW of non-fossil energy by 2030 and net-zero emissions by 2070.
The finer details of the scheme, including fund manager appointments and project selection frameworks, will be developed over the coming months. Startups, MSMEs, and large corporates working in clean energy and strategic tech domains are expected to be the primary beneficiaries. The infusion of patient capital could be the push needed to transform India’s innovation landscape.
