India’s RDI Scheme

India's major Research, Development, and Innovation (RDI) Scheme aims to catalyse private sector R&D in strategic and sunrise sectors through a Special Purpose Fund within the Anusandhan National Research Foundation (ANRF), utilising a two-tier structure distributing capital via second-level fund managers. Financing is primarily through long-term concessional loans (with some equity), targeting transformative projects. While addressing critical capital gaps, this loan-centric model imposes repayment burdens misaligned with high-risk R&D and lacks grants for early-stage innovation. The scheme's complex governance—involving ANRF bodies and an Empowered Group of Secretaries—risks inefficiency and misalignment with deep-tech dynamics. Empirical evidence highlights delays and expertise gaps. Comparisons with Section 35(2AB) (mixed effectiveness) and the Technology Development Board show complementary but insufficient models. This paper argues successful outcomes demand radical governance reform towards a technocratic board, strict timelines, and embedding within a broader ecosystem strategy addressing talent and academia-industry links, measured by patents and commercialisation

Capital (architecture · Corporate governance · Foundation (evidence · Government (linguistics · Inefficiency · Private sector · Restructuring · Technocracy · Transformative learning · Indian Economic and Social Development · Innovation Policy and RD · Private Equity and Venture Capital