The Government of India has selected the first cohort of 19 fund managers under its Research, Development and Innovation (RDI) Fund, committing ₹7,131 crore to support private-sector research and technology development. The group comprises 14 Alternative Investment Funds (AIFs) and five Focused Research Organisations (FROs), marking a major step in implementing the government’s ₹1 lakh crore initiative to strengthen India’s domestic innovation ecosystem.
The Empowered Group of Secretaries (EGoS) approved the first cohort on October 8, 2026, and the government announced the decision on October 12. The selected institutions will channel funding to eligible technology enterprises working on research and development at Technology Readiness Level (TRL) 4 and above. They are also expected to mobilise private capital equivalent to the RDI Fund’s contribution, creating a mechanism intended to expand investment beyond the government’s initial commitment.
Key Takeaways
- Total commitment: ₹7,131 crore has been committed to the first cohort of 19 fund managers.
- Fund structure: The group includes 14 Alternative Investment Funds and five Focused Research Organisations.
- Overall corpus: The RDI scheme has a total planned corpus of ₹1 lakh crore.
- Private capital: Selected managers are expected to mobilise private investment matching the RDI Fund’s contribution.
- Target companies: Funding is intended for eligible technology enterprises undertaking research and development at TRL 4 or above.
- Approval process: The Empowered Group of Secretaries approved the cohort following a multi-stage evaluation.
- Further expansion: The government says it plans to onboard additional cohorts of fund managers.
What Is the RDI Fund?
The Research, Development and Innovation Fund is a government-backed initiative designed to increase private-sector investment in research, development and emerging technologies. Launched in November 2025, the scheme has a planned corpus of ₹1 lakh crore and aims to address financing gaps that can prevent promising technologies from progressing towards commercial use.
Research-driven companies often face a different funding challenge from businesses built around established products or services. They may need years of development, specialised equipment, technical teams and extensive testing before a technology becomes commercially viable. These requirements can make conventional financing difficult, particularly when the technical risks are high and returns may take time to materialise.
The RDI Fund is intended to provide long-term, patient capital for this stage of development. Rather than relying exclusively on short-term commercial considerations, the scheme seeks to support projects that could build India’s capabilities in strategic and emerging technology areas.
The fund is managed by an independent business unit housed within the Anusandhan National Research Foundation (ANRF), under the Department of Science and Technology in the Ministry of Science and Technology.
The government has positioned the initiative as part of a broader effort to reduce dependence on imported technologies, encourage domestic innovation and help Indian companies develop products that can compete internationally.
How the ₹7,131 Crore Commitment Will Work
The ₹7,131 crore commitment is the amount approved for the first cohort of fund managers. It should not be interpreted as money already distributed directly to 19 startups or as the full amount having been released immediately.
The RDI scheme uses a two-tier structure. The government-backed fund channels capital through selected second-level fund managers, which then finance eligible technology enterprises and research activities under the programme’s rules.
RDI Fund structure at a glance
| Component | Role |
|---|---|
| Government-backed RDI Fund | Provides the capital commitment under the scheme |
| Anusandhan National Research Foundation (ANRF) | Houses the independent business unit managing the fund |
| Second-level fund managers | Assess eligible opportunities and channel funding to technology enterprises |
| Eligible technology enterprises | Undertake research, development and innovation activities |
| Private investors | Expected to contribute matching capital through the selected managers |
The arrangement allows the government to use specialist institutions to assess technology opportunities and identify companies that may be suitable for funding. These managers can bring investment expertise, sector knowledge and relationships with entrepreneurs to the process.
However, the actual pace of investment will depend on project eligibility, the managers’ ability to identify suitable opportunities, the mobilisation of private capital and compliance with the scheme’s requirements.
A commitment establishes the approved funding framework. It does not necessarily mean the entire amount will be disbursed upfront or that all the money will be deployed immediately.
Why the Government Selected 19 Fund Managers
The government received applications from institutions seeking to participate as second-level fund managers. The first application call was launched in January 2026.
Applications underwent a multi-stage evaluation process that included detailed assessments and in-person interactions with an Expert Advisory Committee. The proposals were then placed before the ANRF Executive Council and the Empowered Group of Secretaries for consideration and approval.
The final cohort consists of two broad categories of institutions: Alternative Investment Funds and Focused Research Organisations.
The distinction reflects the different roles that investment vehicles and research-focused organisations can play in the innovation ecosystem. Investment funds can evaluate companies and allocate capital based on their investment mandates, while research organisations can help support technology development and research activities within their respective structures.
The government has not publicly released the complete list of all 19 selected managers in its announcement. Media reports identified several firms that had applied to participate, but an applicant should not be described as a selected manager without confirmation.
The selection process is important because the scheme’s effectiveness will depend not only on the size of its corpus but also on the ability of approved institutions to evaluate technical risk and direct funding towards viable research and development opportunities.
What Are Alternative Investment Funds and Focused Research Organisations?
Alternative Investment Funds are investment vehicles that pool capital from investors and deploy it according to a defined strategy. In India’s regulatory framework, AIFs can invest in a range of assets and companies, including startups and other privately held businesses, depending on their category and mandate.
Under the RDI scheme, the 14 selected AIFs will form part of the network responsible for channelling government-backed funding towards eligible technology enterprises.
Focused Research Organisations are the other category represented in the first cohort. Their inclusion broadens the programme beyond conventional investment vehicles and reflects the role of dedicated research institutions in developing technologies and advancing innovation.
The government announcement identifies five FROs but does not publish a complete list of all selected organisations in the material released alongside the announcement. The exact funding allocations for individual managers were also not disclosed in the announcement.
The mix of fund managers and research organisations is intended to give the programme different routes through which capital can reach research-intensive projects. The eventual results will depend on how these institutions identify opportunities, structure financing and support the development of technologies.
Which Technologies Could Benefit From the RDI Fund?
The scheme is designed to support eligible technology enterprises undertaking research and development at Technology Readiness Level 4 and above. The government has also approved five additional technologies for coverage under the fund, although its announcement did not identify those five technologies individually.
Technology Readiness Levels are used to describe how mature a technology is, from early-stage concepts to systems that have been demonstrated, tested and prepared for deployment. TRL 4 generally refers to technology that has been validated in a laboratory environment.
This threshold indicates that the scheme is aimed at research that has progressed beyond the earliest conceptual stage but may still need substantial development, testing and financing before commercial use.
Potential areas of relevance include artificial intelligence, robotics, quantum technologies, space technology, biotechnology and other strategic or emerging fields. These are examples of areas associated with the programme’s broader objectives, not a confirmed list of projects receiving money under the first cohort.
Why the TRL 4 threshold matters
A technology can work in a controlled experiment without being ready for use in the real world. Moving from laboratory validation to a prototype, field testing, manufacturing and commercial deployment can require considerable additional investment.
For example, a robotics company may demonstrate that a system works in a laboratory but still need funding to test it in industrial environments, improve reliability and prepare for production. A space technology company may need to validate components and complete additional engineering work before a system can be used in an operational mission.
The RDI Fund’s focus on TRL 4 and above is intended to support companies navigating these later development stages. The programme’s contribution will depend on whether financing helps projects cross the gap between technical validation and practical adoption.
Why Matching Private Capital Is Important
One of the central requirements of the RDI Fund is that selected managers are expected to mobilise private capital equivalent to the fund’s contribution.
The approach is designed to make public funding a catalyst for additional investment rather than the sole source of finance. If the matching requirement is achieved in full, the approved government commitment could help support a larger pool of investment for eligible technology enterprises.
The exact amount of additional capital ultimately raised will depend on how the selected managers perform and whether private investors participate at the required level. The matching expectation should therefore not be treated as a guarantee that the full amount of private capital has already been secured.
What the matching requirement could mean
| Factor | Potential implication |
|---|---|
| Government commitment | Establishes a public funding base for the selected managers |
| Private capital mobilisation | Can expand the total pool available for eligible projects |
| Investment manager expertise | Helps assess technical and commercial risks |
| Project readiness | Determines whether companies meet the scheme’s eligibility criteria |
| Funding deployment | Depends on suitable opportunities and the programme’s procedures |
Matching capital can help distribute investment risk and encourage private investors to participate in research-intensive businesses. However, it also creates an execution challenge: managers must identify companies that meet the scheme’s requirements and attract the necessary private investment.
Deeptech companies may need to demonstrate credible technical progress, a viable development plan and a route towards commercial adoption. The availability of public support does not remove the need to evaluate those risks.
How the RDI Scheme Fits Into India’s Startup Ecosystem
India has developed a large startup ecosystem, particularly in software, digital services, consumer technology and financial technology. Deeptech businesses, however, can face a different set of challenges because they often require longer development periods, specialised infrastructure and greater spending before generating revenue.
For software businesses, an initial product can sometimes be developed and tested with comparatively limited capital. In fields such as advanced manufacturing, biotechnology, space technology and robotics, development can involve laboratory facilities, physical prototypes, engineering validation and regulatory testing.
These costs can make it difficult for companies to move from promising research to commercial products. Investors may also be cautious when technologies have uncertain development timelines or require extensive technical validation.
The RDI Fund seeks to address this gap by making longer-term capital available through specialist managers. If implemented effectively, it could help companies finance development milestones that traditional financing may not adequately support.
It could also encourage closer connections between research organisations, entrepreneurs and private investors. These links matter because research findings do not automatically become commercially successful products; companies need funding, technical expertise, manufacturing capabilities and customers to bring innovations to market.
Early Evidence of Funding Deployment Under the Scheme
The Technology Development Board (TDB), which is among the institutions involved in the RDI funding framework, had already begun providing financial assistance to technology projects before the announcement of the first cohort of 19 managers.
According to reporting by The Economic Times, TDB had received 124 proposals by April 2026 and approved 22 projects, with financial assistance of ₹2,192 crore against a total project cost of ₹4,744 crore.
Reported beneficiaries included Dhruva Space, Agnikul Cosmos, The ePlane Company, Ather Energy, GalaxEye and Noccarc Robotics. The projects covered areas including space technology, electric mobility, robotics and healthcare.
These figures offer an indication of the types of technology businesses and development projects that the broader RDI framework may support. They should not be confused with disbursements from the newly announced ₹7,131 crore commitment to the first cohort of 19 fund managers.
The distinction is important when measuring the scheme’s progress. Approvals, commitments, actual disbursements and completed projects represent different stages of the funding process.
What the Announcement Means for Startups and Investors
For eligible technology companies, the selection of the first cohort expands the network of institutions that may be able to provide financing under the RDI scheme.
Startups will still need to meet the applicable eligibility requirements and approach the relevant fund managers or programme channels. The announcement does not mean that every deeptech startup automatically qualifies for funding, nor does it guarantee that any particular company will receive capital.
For private investors, the scheme may create opportunities to participate in technology development alongside government-backed funding. The matching-capital requirement is intended to bring additional private money into the ecosystem, although investment decisions will continue to depend on project quality and commercial prospects.
For fund managers, the next challenge will be translating approved commitments into actual investments. This will involve evaluating technical progress, commercial opportunities, funding needs and the ability of companies to meet the programme’s conditions.
For the wider startup ecosystem, the key measure of success will be whether the funding helps more technologies reach commercial deployment, attracts sustained private investment and builds capabilities in sectors where India seeks to reduce import dependence.
The Bigger Picture
The selection of 19 fund managers marks an important implementation milestone for India’s ₹1 lakh crore Research, Development and Innovation Fund. The programme addresses a specific challenge: promising technologies can struggle to secure the long-term capital needed to move from validated research towards market-ready products. By routing funding through specialist institutions and expecting them to mobilise matching private capital, the government aims to broaden the pool of money available for technology development.
However, the size of the announced commitment is only one measure of progress. The programme’s longer-term impact will depend on how quickly capital is deployed, whether suitable private investment is mobilised and whether funded companies achieve meaningful technical and commercial milestones. Transparent reporting on allocations, disbursements and project outcomes will be important in assessing whether the initiative delivers on its goals.
Looking Ahead
The government has said it will invite applications and onboard additional cohorts of second-level fund managers in the near future. The next stages will include operationalising the first cohort, identifying eligible technology enterprises and moving approved commitments towards actual funding. The publication of the full list of selected managers and clearer information about their individual allocations would help startups and investors understand how to engage with the programme.
For India’s deeptech ecosystem, the central test will be whether the RDI Fund helps research-intensive companies overcome financing barriers and bring technologies to market. A successful programme could strengthen domestic research capabilities and attract more private capital to strategic sectors. Those outcomes, however, will depend on execution, investment discipline and measurable progress beyond the initial funding announcements.
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
