ANRF Approves RDI Fund Guidelines, Launch Imminent

The Government of India has taken a major step towards boosting research, development, and innovation (RDI) in the private sector. The Anusandhan National Research Foundation (ANRF) recently approved the establishment of a Special Purpose Fund (SPF) to operationalise the ₹1 lakh crore RDI Fund. This fund aims to accelerate innovation in emerging sunrise sectors. The approval includes governance frameworks, implementation guidelines, and special financial rules prepared by the Department of Science & Technology (DST) in consultation with economic ministries. The initiative is expected to catalyse private investment and long-term growth driven by innovation.

Background and Context

On 1 July 2025, the Union Cabinet approved the creation of the ₹1 lakh crore RDI Fund. The fund targets private sector participation in research and innovation. DST is the nodal ministry overseeing the scheme. The RDI Fund is designed to transform India’s innovation landscape by encouraging private capital in high-potential sectors.

Structure of the RDI Fund

The Fund operates through a two-tiered structure. At the top level, ANRF holds the corpus in a Special Purpose Fund. ANRF acts as the custodian but does not invest directly in companies or startups. Instead, it channels funds to second-level fund managers. These include Alternative Investment Funds (AIFs), Development Finance Institutions (DFIs), and Non-banking Finance Companies (NBFCs).

Role of Second-Level Fund Managers

Second-level fund managers are responsible for deploying capital into innovative ventures. They operate through investment committees composed of experts from financial, business, and technical fields. These committees function independently from the government to ensure unbiased decision-making. This structure aims to leverage professional expertise and market discipline in fund allocation.

Governance and Financial Rules

The governance framework includes special financial rules and management policies approved by the Ministry of Finance. These rules ensure transparency, accountability, and efficient fund management. The Department of Science & Technology led the drafting of these guidelines with inputs from the Department of Economic Affairs and Department of Expenditure.

Expected Impact on Innovation Ecosystem

The RDI Fund is expected to enhance private sector involvement in research and innovation. By providing a large pool of capital managed professionally, it aims to stimulate growth in sunrise domains. This initiative is aligned with India’s vision to become a global innovation hub and reduce dependence on public funding alone.