PM Modi Announces India’s Largest Innovation Fund
Prime Minister Narendra Modi on Monday unveiled a landmark ₹1 lakh-crore Research, Development and Innovation (RDI) Fund, aimed at empowering private-sector R&D in cutting-edge technologies such as artificial intelligence (AI), semiconductors, space, and defence-grade deep-tech.
The announcement was made during the Emerging Science, Technology, and Innovation Conclave (ESTIC) 2025 in New Delhi.
Modi said the fund will serve as a “national engine of innovation”, ensuring India becomes a global leader in new-age technologies.
“This is India’s time to lead the innovation century. The RDI fund will give our scientists, startups, and private companies the freedom to create, invent, and compete globally,” Modi said.
Funding Structure and Vision
The ₹1 lakh-crore fund will operate under a Public-Private Partnership (PPP) model, inviting private sector, venture capitalists, and corporate R&D labs to co-invest alongside government agencies.
Officials said that the fund will have three key verticals:
AI & Data Innovation Fund – for startups in generative AI and machine learning.
Semiconductor and Chip Design Mission – to accelerate domestic chip production.
Defence & Strategic Deep-Tech Fund – to promote dual-use technologies.
The initiative will be jointly overseen by the NITI Aayog, the Ministry of Electronics and IT (MeitY), and the Department of Science & Technology (DST).
Industry and Global Reactions
Industry leaders and startup founders hailed the RDI Fund as a long-awaited step to bridge the gap between India’s scientific potential and its commercialization capacity.
NASSCOM President Debjani Ghosh tweeted,
“A ₹1 lakh-crore RDI fund signals India’s intent to lead in AI and semiconductors. This will drive innovation from labs to markets.”
Global investors also welcomed the policy, saying it could position India as a hub for semiconductor design and AI manufacturing by 2030.
“This announcement aligns with the world’s need for alternative tech hubs beyond China and the US,” said Rajesh Kapoor, CEO of a Bengaluru-based chip startup.
A Boost for Startups and Job Creation
The government expects the RDI initiative to create over 5 lakh direct and indirect jobs in the next five years.
It will also simplify patent registration and provide easier access to research funding for young entrepreneurs and academic innovators.
A special digital platform, RDI Connect, will be launched by March 2026 to link researchers with industry partners and investors.
“Our mission is to make India the world’s top innovation destination by 2047 — a true Viksit Bharat powered by research,” Modi concluded.
Global Context and Strategic Importance
The move comes amid a global race for AI supremacy, with the US, China, and the EU investing billions into advanced research.
India’s RDI Fund aims to leverage its large talent pool and cost advantage to attract foreign collaborations while strengthening domestic capacity for defence and industrial innovation.
Experts believe the fund could significantly reduce import dependency in sensitive sectors like chips, drones, and cyber defence.
Key Takeaways
₹1 lakh-crore RDI fund launched to accelerate private-sector innovation.
Focus on AI, semiconductors, and defence-grade deep-tech.
PPP model with NITI Aayog, MeitY, and DST oversight.
Aims to create 5 lakh jobs and position India as a global innovation hub.
