India is witnessing a significant surge in its deep technology sector, with the government's ambitious Research, Development, and Innovation (RDI) Fund formally backing its first cohort of 22 projects. This initial round of support from the ₹1 lakh crore (approximately $120 billion) fund commits ₹2,192 crore to groundbreaking initiatives across various high-tech domains.
Dr. Sudhir Mehta, a prominent member of the Technology Development Board's Investment Committee, expressed profound optimism after reviewing the proposals. "After months of reviewing proposals from Indian founders, I am more optimistic about India's future than at any point," Mehta stated, highlighting the transformative potential of these ventures.
Key Investments Driving Innovation
The 22 projects selected for this initial phase represent a total R&D investment of ₹4,744 crore. Notably, the participating companies are contributing over half of the required capital themselves, underscoring their commitment and confidence in the projects' viability. Of these, 14 are startups, and 13 are specifically focused on deep-tech areas.
The diverse range of technologies receiving support includes:
- Reusable launch vehicles
- Earth observation satellites
- Quantum-secure communication systems
- Advanced Indian chip design
- Autonomous drones and robotics
- Next-generation battery technologies
These innovative companies hail from major Indian tech hubs such as Bengaluru, Chennai, Hyderabad, Mumbai, Thane, Noida, and Pune, showcasing a nationwide spread of deep-tech capabilities.
Strategic Funding with Strict Conditions
The RDI Fund, approved by the Union Cabinet on July 1, 2025, and formally launched by Prime Minister Narendra Modi on November 3, 2025, aims to encourage high-risk R&D by Indian private companies and startups. It offers patient capital at a competitive interest rate of 3% to 4% for up to 15 years, crucially without requiring collateral or personal guarantees.
Mehta emphasized the strategic conditions attached to this funding: "Intellectual property must remain in India and control must remain with Indian citizens." This ensures that the innovations fostered by the fund directly benefit the nation's economic and technological sovereignty.
The process is designed for efficiency, with proposals evaluated within eight weeks and funds expected to be disbursed within 12 weeks. This streamlined approach addresses a historical challenge faced by Indian innovators. "India's problem was never ideas. It was patient capital," Mehta remarked, indicating that the RDI Fund seeks to bridge this critical gap.
Boosting India's R&D Landscape
Currently, India allocates approximately 0.64% of its GDP to R&D, with private industry contributing around 36% of that spending. The ₹1 lakh crore corpus of the RDI Fund is managed through a Special Purpose Fund under the Anusandhan National Research Foundation (ANRF).
The ANRF acts as an umbrella body, providing capital to Second-Level Fund Managers, which include various alternative investment funds, development finance institutions, non-banking financial companies, and specialized organizations like the Technology Development Board and Biotechnology Industry Research Assistance Council. This multi-tiered structure aims to ensure efficient allocation and oversight.
"After sitting across the table from these founders, I have no doubt. India's top-notch deep tech companies are being built right now. The capital is ready. The founders are ready. This decade belongs to Indian deep tech," Mehta concluded, signaling a transformative era for India's technological future.