Latest news with #ResearchDevelopmentandInnovation
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Business Standard
3 hours ago
- Business
- Business Standard
Govt must go beyond RDI, fund bluesky research at the university level
The RDI scheme may address some of the concerns about private-sector R&D, though it will be critically important to support the right sort of projects premium Business Standard Editorial Comment Mumbai Listen to This Article The Research Development and Innovation (RDI) Scheme, approved by the Union Cabinet this week, is an acknowledgement that policymakers must find ways to spark innovation and support it with funding. However, while the scheme is a step in the right direction, a lot will need to be done and, given the way the scheme is designed, it may not address some key concerns that hinder India's research & development (R&D). India spends less than 1 per cent of its gross domestic product (GDP) on R&D, while for China and South Korea, for example, it is over 2.5 per cent. Thus,
India Today
8 hours ago
- Business
- India Today
Is India's Rs 1 trillion RDI scheme inspired by China's Thousand Talents Plan? Not quite
In order to revitalise India's R&D ecosystem, the government has cleared the Rs 1 lakh crore Research Development and Innovation (RDI) Scheme. The policy aims to inject much-needed capital into deep-tech sectors and strategic industries, primarily by offering startups and private players long-tenure, low-interest loans and equity details of the initiative emerged, comparisons began to surface. Most notably with China's controversial Thousand Talents Plan (TTP) (launched in 2008). That programme was Beijing's ambitious bid to bring home its brightest minds from across the globe. So, is India now trying to emulate China's Plan?advertisementNot quite. And the difference is more than cosmetic. 'The Rs. 1-trillion RDI scheme is a welcome move, but it's not cut from the same cloth as China's Thousand Talents Plan,' says Srinath Sridharan, Corporate Advisor & Independent Director on Corporate Boards. 'It's a financial intervention, not a people strategy.'China's TTP was designed with the aim of reversing brain drain. It dangled lucrative incentives, including research autonomy, leadership posts, lab funding, and generous salaries, to draw back Chinese-origin scientists, engineers, and tech entrepreneurs from elite institutions programme placed many of them directly into leadership roles in high-tech firms, especially in fields like AI, genomics, and quantum new scheme, by contrast, takes a different tack. There's no direct outreach to diaspora talent. No talk of any central mechanism to attract returning scientists. No coordinated effort is being made to fast-track them into institutions or give them decision-making authority in national R&D not about repatriating talent,' Sridharan argues. It's about unlocking capital to stimulate innovation at home. That's a fundamentally different design.'TWO MODELS, TWO MINDSETSWhere China's approach was centrally planned and state-directed, India's RDI scheme is built around market forces. The expectation is that funding will enable private players to take more risks in R&D-heavy companies (aka the sunrise sectors) — health tech, semiconductors, green energy — areas where returns are uncertain and therein lies the rub.'Innovation doesn't emerge from capital alone,' Sridharan cautions. 'It needs minds... motivated, skilled, and empowered minds.'For India to consider shifting from brain drain to brain gain, we need more than just a funding mechanism. What's missing (and much-needed) is a long-term vision that connects all three: talent, infrastructure, and does one get there? First, by creating globally competitive research institutions with operational autonomy; second, ensuring urban ecosystems that can support the lifestyle, career, and educational expectations of those returning scientists; third, cutting the red tape that may end up slowing down or stifling scientific exploration; and above all, articulating a clear national innovation agenda with SUCCESS AND FALLOUTIt is true that China's TTP came with serious baggage. On the one hand, the Plan succeeded in attracting thousands of top-tier researchers and repositioned Beijing as a serious tech player. But it also triggered geopolitical concerns, especially in the U.S., where several scientists who were affiliated with the programme were accused of failing to disclose Chinese ties or funding. The Plan even led to investigations, terminations, and, in some cases, even criminal 2022, under international pressure and domestic recalibration, Beijing hurriedly retired the original TTP. Although some elements of it live on in other points out that India doesn't need to replicate the Chinese model as it were. But there's a lesson there for us: 'China got it right that talent follows purpose. If your system signals seriousness, autonomy, and ambition, top talent will pay attention.'THE ROAD AHEADIndia's RDI scheme has laid the financial groundwork. But unless there's an equally compelling plan to mobilise human capital both domestically and globally, the country could end up with capital-rich labs and boardrooms but a scarcity of scientific like building a space rocket and forgetting to train the astronauts. You can get off the ground, but not go India hopes to lead in frontier innovation by 2047, it must think beyond money. It must craft a story bold enough to bring its brightest minds home not just to participate, but to lead.- Ends advertisement
Time of India
2 days ago
- Business
- Time of India
Centre approves ₹1 lakh crore scheme to boost R&D, innovation in sunrise sectors
NEW DELHI: The Cabinet, led by Prime Minister Narendra Modi , on Tuesday approved the 'Research Development and Innovation (RDI) Scheme' with a corpus of ₹1 lakh crore, a move that is expected to boost private sector investments in research and development (R&D) in sunrise sectors , such as deep tech and electronics. 'Recognizing the critical role that the private sector plays in driving innovation and commercialising research, the RDI Scheme aims to provide long-term financing or refinancing with long tenors at low or nil interest rates to spur private sector investment in RDI,' the Central government said in an official statement. India has been a laggard vis-à-vis mature markets like the US, Japan, and China, in terms of R&D investments. Experts estimate that India allocates only about 0.64% of its GDP to investing in R&D. As per the government statement, the scheme envisages alleviating the challenges in funding the private sector and seeks to provide growth and risk capital to sunrise and strategic sectors to facilitate innovation, promote adoption of technology, and enhance competitiveness. Other key objectives of the scheme include financing transformative projects at higher levels of technology readiness levels (TRL); supporting the acquisition of technologies critical or of high strategic importance; and facilitating the setting up of a deep-tech fund of funds. The governing board of Anusandhan National Research Foundation (ANRF), chaired by PM Modi, will provide overarching strategic direction to the RDI Scheme. The executive council (EC) of ANRF will approve the scheme's guidelines, and recommend second-level fund managers and scope and type of projects in the sunrise sectors. An empowered group of secretaries (EGoS) led by the Cabinet Secretary will be responsible for approving scheme changes, sectors and types of projects as well as second-level fund managers, besides reviewing the performance of the Scheme, as per the statement. The Department of Science and Technology (DST) will serve as the nodal department for the implementation of the RDI Scheme. The RDI Scheme will have a two-tiered funding mechanism. At the first level, there will be a Special Purpose Fund (SPF) established within the ANRF, which will act as the custodian of funds. From the SPF funds, shall be allocated to second-level fund managers, primarily in the form of long-term concessional loans. The funding for R&D projects by the second-level fund managers would normally be in the form of a long-term loan at low or nil interest rates. Financing in the form of equity may also be done, especially in the case of startups. Contribution to Deep-Tech Fund of Funds (FoF) or any other FoF meant for RDI may also be considered. 'By unlocking ₹1 lakh crore of long-term capital for sunrise and strategic sectors, this initiative will catalyze private-sector-led innovation in areas critical to India's economic and technological sovereignty — including semiconductors, deep-tech, and electronics. IESA strongly supports this vision and will actively work to mobilise its member base and ecosystem partners to align with the RDI goals,' said Ashok Chandak , president of IESA and SEMI India. 'This fund will also enable translational research by the private sector. Typically, under ANRF, technical, education/research institutions will take it to Technology Readiness Level 4. Private sector (both corporate and startups) can then take it for translational research to TRL-9 for India and the world,' said Ajai Chowdhry, founder of HCL, and chairman of EPIC Foundation. The newly approved R&D fund will enable India to develop cutting-edge products across various sectors and assert its position as a product nation in different areas, Chowdhry said.
Hindustan Times
2 days ago
- Business
- Hindustan Times
₹1L-crore R&D push for private sector unveiled
The Union Cabinet on Tuesday cleared a scheme with a corpus of ₹ 1 lakh crore to channel funding to the private sector for accelerating research, development, and innovation in sunrise and strategic sectors in the country. Union I&B minister Ashwini Vaishnaw during a cabinet briefing in Delhi on Tuesday. (ANI) The Research Development and Innovation (RDI) scheme, shaped through wide consultations with industry experts, will provide long-term financing or refinancing at low or interest-free rates . It will back projects that have moved beyond early-stage research and reached the prototype stage,said union minister Ashwini Vaishnaw at a press briefing on the cabinet's decisions. 'When a company moves beyond the prototype stage, it often faces the 'valley of death,' a critical phase where many innovations fail due to lack of support,' said Vaishnaw. 'This is exactly when timely assistance is needed to turn a promising prototype into a viable product.' The scheme will target sunrise sectors such as clean energy, climate tech, deep tech (quantum applications, robotics, space teach), AI in key areas, biotech, digital agriculture, and also interestingly technologies required for strategic reasons, economic security, self-reliance or public interest. 'Countries that invest heavily in R&D see long-term gains in productivity and technological advancement across industries,' said Vaishnaw. The Economic Survey 2024-25 noted that even though India has increased the gross expenditure on research & development (GERD) from approximately ₹ 60,196 crore in 2011 to about ₹ 127,381 crore in 2021, it still is a mere 0.64% of its GDP. The survey noted that this remains 'insufficient and remains low compared to many countries that have forged ahead in R&D.' A Press Information Bureau release said the government will give ₹ 1 lakh crore to the Anusandhan National Research Foundation (ANRF) as a 50-year interest-free loan. ANRF, a government body set up to boost research and innovation, will create a special fund that offers concessional finance to second-level fund managers, who will then evaluate and select individual projects for funding. In some cases equity investments in startups may also be considered, the PIB release said. Contributions to the Deep-Tech Fund of Funds, announced in Budget 2025, or any other fund of funds meant for RDI may also be considered, the release added. The RDI scheme will be guided by the ANRF governing board, chaired by the prime minister. Its executive council will set guidelines and recommend fund managers and project types. A group of secretaries, led by the cabinet secretary, will approve changes and review progress. The secretary of the relevant sector will be included in the group. For instance, if a project involves AI, the secretary of the IT ministry will be part of the decision-making body. The department of science and technology will be the nodal agency for implementation. Industry insiders described the scheme as transformative. 'DeepTech is the final frontier in the Indian Startup ecosystem. This ( ₹ 1 Lakh crore over 5 years) is a massive commitment from the Government of India to catalyze private sector R&D and deep tech innovation,' said Rajan Anandan, Managing Director at Peak XV Partners and former head of Google in India and Southeast Asia on X. Nikhil Agarwal, managing director, foundation for innovation and technology transfer (FITT), IIT Delhi, said, 'For the first time, our private sector has a real runway to dream bigger, build deeper, and compete globally. This move can transform India from a service-driven economy into a true innovation powerhouse. It's a defining moment for our nation's future.' He pointed out that for young founders building in AI, space, biotech or semiconductors, access to R&D capital has always been the missing link. This scheme fills that gap, he said, calling it a structural reform that re-imagines how India competes globally.
The Hindu
2 days ago
- Business
- The Hindu
Cabinet approves ₹1 lakh crore corpus for galvanising private investment in R&D
The Union Cabinet on Tuesday approved a ₹1-lakh crore Research Development and Innovation (RDI) scheme that aims to incentivise the private sector to invest in basic research that would translate into innovative products and technologies. Finance Minister Nirmala Sitharaman first announced the creation of such a fund in her interim Budget speech of 2024. A horizon for the fund has not been specified. However, the Ministry of Science and Technology, which is to be administratively in charge of the corpus, had an additional ₹20,000 crore allotment in its Budgetary allocation for the 2025-26 financial year, officials had told The Hindu earlier this year, was intended for the RDI scheme. The larger aim is to have India, like advanced technological countries, have private sector chip in more than government to fund basic research. The RDI Scheme will have a two-tiered funding mechanism, the Science Ministry said in a press statement. 'At the first level, there will be a Special Purpose Fund (SPF) established within the ANRF, which will act as the custodian of funds. From the SPF, funds shall be allocated to a variety of second level fund managers. This will be mainly in the form of long-term concessional loans. The funding to R&D projects by the second level fund managers would normally be in the form of long-term loan at low or nil interest rates. Financing in the form of equity may also be done, especially in case of start-ups. Contribution to Deep-Tech Fund of Funds (FoF) or any other FoF meant for RDI may also be considered,' the statement noted. Anusandhan National Research Foundation (ANRF) was conceived as an independent institutional body overseen by the science ministry to allocate funds for basic research and to incentivise private sector participation in core research. The scheme has been designed to overcome the constraints and challenges in funding of private sector and seeks to provide growth and risk capital to sunrise and strategic sectors to facilitate innovation, promote adoption of technology and enhance competitiveness, the statement added. Funds, however, would be provided only for products that had reached a certain level of development and market potential. 'TRL-4 [Technological Readiness Level -4] projects, which usually face the highest risk for want of financial support would be considered,' Minister for Information Technology Ashwini Vaishnaw said at a Union Cabinet press briefing. He did not explain how many levels of TRL existed. The broad domains where investments would be encouraged include: Energy security and transition, and climate action; deep tech, including quantum computing, robotics, and space; artificial intelligence and its application to India-specific challenges in agriculture, health, and education; biotechnology, biomanufacturing, synthetic biology, pharma, and medical devices; digital economy including digital agriculture; technologies required for strategic reasons, economic security, self-reliance (Atmanirbhar), or public interest, Mr. Vaishnaw noted.
