India Names First Managers for $11.1 Billion RDI Fund: Report
BIRAC and the Technology Development Board have been picked to steer the first tranches as startup funding is set to open by March 2026.
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India’s Department of Science and Technology (DST) has taken the first concrete step to deploy the Centre’s ₹1 trillion ($11.1 billion) Research, Development and Innovation (RDI) Fund with the formal appointment of two fund managers, Mint reported, citing people familiar with the decision.
The organizations named to steer the early tranches are the Biotechnology Industry Research Assistance Council (BIRAC) and the Technology Development Board (TDB), both well-known in India’s science-policy ecosystem.
Two additional managers: Small Industries Development Bank of India (SIDBI) and SBI Funds Management Ltd (the AIF arm of India’s largest public-sector lender) are expected to be finalized soon, the report added.
The approvals mark the first major milestone for the deep-tech financing initiative, launched by the DST in July after cabinet clearance and formally announced by the government earlier this year.
Under the RDI scheme, the first call for applications from startups and research companies is expected by March 2026, spanning high-tech sectors such as semiconductors, industrial electronics, quantum computing, biotech and advanced manufacturing.
Unlike traditional grant-based models, funding under RDI will be routed through second-level fund managers such as BIRAC, TDB or other accredited Alternate Investment Funds (AIFs), development finance institutions or focused research organisations, who will dispense long-term, low-interest loans or equity to eligible projects.
The government is banking on RDI to shift India’s innovation model from academic research and subsidies to market-oriented, deep-tech product development, intending to move the nation closer to its goals under the “Atmanirbhar Bharat” / “Viksit Bharat 2047” vision.
Investors and industry associations tracking India’s startup and deep-tech space say a patient-capital structure such as RDI’s, combining public backing and professional fund management, could help resolve a major bottleneck: lack of long-term domestic funding for high-risk, high-reward technologies.
