₹1 trillion RDI fund: Building a future-ready economy

Over the past decade, India has quietly but decisively transformed into an emerging tech powerhouse.

- ABHAY KARANDIKAR

Under Prime Minister Narendra Modi's leadership, the country's innovation ecosystem has matured rapidly, fueled by bold policies, strategic investments, and a push for technological self-reliance. The goal is now unmistakable: to position India as a future-ready economy, driven by homegrown breakthroughs.

On July 1, the Union Cabinet approved a historic and bold initiative to set up a ₹1 trillion Research, Development and Innovation (RDI) Fund aimed at spurring a private sector-driven R&D ecosystem. It's a long-term support for India's ability to lead global innovation. A specific allocation of ₹20,000 crore has already been made this year. The fund arrives at a crucial juncture — when India's innovation ambitions are accelerating, and the global technology landscape is undergoing rapid transformation.

Sunrise sectors: Where the opportunity lies

With over 170,000 registered startups and 100+ unicorns, India is now the world's third-largest startup ecosystem. What was earlier motivated by jugaad is now being power-driven by institutional support and structured innovation. Not only are startups creating employment but they are also bolstering the economic fabric of tier 2 and tier 3 cities.

The government policy support has remained in step. Schemes like the Startup India Seed Fund, Fund of Funds, Credit Guarantee Scheme and abolition of the angel tax have been game changers. These interventions have reduced entry barriers, sparked ambition, and allowed a new generation of entrepreneurs to build with scale and confidence. In Modi 3.0, the spotlight has now decisively shifted in the direction of deep-tech and advanced manufacturing. The entrepreneurial wave unfolding now, will be all about building global deep-tech products in sunrise sectors.