India Expands ₹1 Lakh Crore RDI Fund to Include AI, Tightens Safeguards
Union Minister Jitendra Singh announces strategic expansion of the fund to include emerging technologies while accelerating disbursals to deep-tech firms.
India is broadening the strategic reach of its Research, Development and Innovation (RDI) Fund to include artificial intelligence and other emerging technologies. The move aims to accelerate the nation's deep-tech capabilities while maintaining rigorous oversight of public and private investments.
During a monthly review meeting, Union Minister of State for Science and Technology Jitendra Singh confirmed that the RDI Fund—a ₹1 lakh crore initiative housed under the Anusandhan National Research Foundation (ANRF)—is implementing stringent safeguards. According to Singh, these measures are designed to prevent conflicts of interest and protect both taxpayers’ money and private capital. While the Minister emphasized the need for faster fund disbursal to eligible firms, he stressed that this acceleration must not come at the expense of strict due diligence.
Strategic Sectoral Expansion
To remain responsive to global technological shifts, the government is expanding the fund's sectoral scope. Based on expert committee recommendations, the RDI Fund will now cover a wider array of strategically important technologies, with a specific focus on AI. This expansion is intended to ensure that India maintains a competitive edge in fields that are rapidly evolving and critical to national security and economic growth.
Operational Milestones
Central to the fund's execution is the appointment of Second-Level Fund Managers (SLFMs), who are responsible for identifying deserving companies for investment. The selection process for these managers was a primary focus of the August 2026 review, with completion expected by early September 2026.
Operational momentum is already evident, as the government confirmed that disbursals have already begun. Specifically, funds were distributed to five deep-tech startups in May 2026, signaling the transition from policy framework to active capital deployment.
Industry Implications
By balancing robust safeguards with a more agile disbursal mechanism, the Indian government is attempting to lower the risk profile for private-sector R&D. The RDI Fund serves as a cornerstone of a broader strategy to foster science-industry collaboration, creating a structured environment where high-risk, high-reward deep-tech ventures can secure the necessary funding to scale.
This approach is critical for the growth of the domestic ecosystem, as it encourages private equity to enter the research space with the assurance that public oversight and institutional frameworks are in place to mitigate systemic risks.
Future Outlook
As the SLFM selection process concludes, the industry will be watching for the next wave of funded firms and the specific criteria used to qualify AI-based ventures. The government's ability to scale these disbursals without compromising the stringent safeguards mentioned by Minister Singh will be the primary metric of the fund's success in the coming quarters.