Secretary of Technology Development Board, Rajesh Kumar Pathak, announced the government’s intention to increase research and development spending to approximately 2% of the GDP. He encouraged the private sector to utilize the Rs 1 lakh crore Research, Development & Innovation Fund (RDIF) to support up to half of project costs. Pathak highlighted the importance of the private sector in enhancing R&D expenditure, which currently stands at around 0.65% of GDP.
Through the RDIF, industries can access 50% funding for their total R&D expenses and leverage this opportunity to acquire foreign technologies. The government has initially allocated Rs 1 lakh crore for the fund, with potential for further growth through reinvestment in research and development initiatives. The fund aims to assist industries in mitigating the initial risks associated with R&D and innovation by providing collateral-free funds for a period of 10-15 years.
Emphasizing support for cutting-edge research, the fund primarily targets sunrise sectors such as Energy security, transition, and climate action. It also focuses on promoting ‘deep technology’ areas like quantum computing, robotics, space, AI applications in various sectors, biotechnology, digital economy, and more. Puneet Dalmia from FICCI highlighted that the RDIF signifies India’s transition from a technology consumer to a technology creator, emphasizing the importance of sectors like AI, semiconductors, biotechnology, and defense for India’s future competitiveness.
