How Will the Rs 1 Lakh Crore Fund Enhance Private Sector R&D in Robotics, AI & Drones?
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Synopsis
The Indian government is set to launch a massive Rs 1 lakh crore fund aimed at transforming private sector research and development. This initiative focuses on key sectors like AI, robotics, and biotechnology, promising to revolutionize innovation in India. Discover how this funding will impact technology and industry growth in the nation.
Key Takeaways
- The Indian government has announced a Rs 1 lakh crore fund for private sector R&D.
- The fund focuses on emerging sectors such as robotics, AI, and biotechnology.
- Companies must cover half of their project costs; the fund will cover the rest.
- Private investment in high-risk sectors will be encouraged.
- The initiative aims to reduce reliance on rare earth imports.
New Delhi, July 6 (NationPress) The Indian government's newly announced Rs 1 lakh crore fund aims to bolster research and development as well as innovation within the private sector. This fund will concentrate on emerging and strategic areas such as energy transition, climate technologies, robotics, drones, space technology, biotechnology, synthetic biology, AI applications, and the digital economy, according to Abhay Karandikar, Secretary of the Department of Science and Technology.
In addition, to mitigate India's reliance on rare earth imports from China, researchers are exploring local alternatives, including rare-earth-free technologies like synchronous reluctance motors, Karandikar shared in an exclusive interview with NDTV Profit.
He pointed out that the operational structure for this fund is nearing completion and is expected to be launched within months.
Detailing the scheme, Karandikar mentioned that funding will be provided through either concessional loans, equity financing, or a blend of both. Companies will be responsible for covering half of the project costs, while the remaining will be provided by the fund.
The government has initiated this research and innovation fund to motivate private entities to invest in high-risk sectors that they have previously been reluctant to engage in.
"The fund will focus on private sector R&D encompassing corporations, industries, and deep-tech startups," Karandikar emphasized.
On Tuesday, the Union Cabinet sanctioned the Research Development and Innovation Scheme, which holds a total of Rs 1 lakh crore, aimed at strengthening India's research and innovation landscape.
Understanding the crucial part that the private sector plays in innovation and the commercial application of research, the RDI Scheme is designed to offer long-term financing or refinancing with extended terms at low or no interest rates to encourage private sector participation in R&D.
This initiative aims to address the challenges and limitations associated with funding in the private sector, providing growth and risk capital to emerging and strategic sectors to facilitate innovation, encourage technology adoption, and enhance competitiveness.
The scheme intends to fund transformational projects with advanced technology readiness levels, support the acquisition of critically important technologies, and establish a Deep-Tech Fund of Funds.
The ultimate goal of this initiative is to inspire the private sector to expand research, development, and innovation (RDI) in sunrise industries and other sectors vital for economic security, strategic importance, and self-reliance.
Point of View
The government not only fosters technological advancement but also encourages private sector participation. This initiative embodies a strategic move towards self-reliance and economic resilience, essential for India's growth trajectory.
NationPress
17/07/2025
Frequently Asked Questions
What is the purpose of the Rs 1 lakh crore fund?
The fund aims to support research and development along with innovation in the private sector, focusing on critical sectors like robotics, AI, and biotechnology.
How will the funding be distributed?
Funding will be provided through concessional loans, equity, or a mix of both, with companies expected to cover half of the project costs.
Why is this fund significant for India?
It addresses India's reliance on rare earth imports and encourages private investment in high-risk but essential sectors, bolstering the country’s innovation landscape.
What sectors will benefit from this fund?
The fund will support emerging and strategic sectors including energy transition, climate technologies, robotics, drones, space technology, and more.
When will the fund be operational?
The operational framework for the fund is currently being finalized and is expected to roll out within months.
