Research, Development & Innovation Scheme

The RDI Scheme is the largest single pool of capital in the Indian innovation ecosystem, approved by Cabinet in July 2025. It does not lend directly: the fund goes to Second Level Fund Managers — AIFs, development finance institutions, NBFCs and Focused Research Organisations — which then finance private companies, including DPIIT-recognised startups, doing RDI-intensive work. For a deep-tech company past the grant stage, this is the growth-capital route.

Implementing agency: Second Level Fund Managers (AIFs, DFIs, NBFCs, FROs)

1. 1

   Confirm your work is genuinely RDI-intensive

   This is not a working-capital scheme. You need a defined research and development programme with technology milestones, not incremental product work.

2. 2

   Identify the right Second Level Fund Manager

   Startups apply directly to the SLFMs — the Technology Development Board runs one such window. Match on sector and instrument preference (debt vs equity).

3. 3

   Build the project case

   Technology readiness level today and target, R&D budget by workstream, team credentials, IP position, and the commercialisation route. Financials must show how the 50% counterpart funding is being raised.

4. 4

   Submit through the SLFM's registration process

   Each SLFM runs its own intake — for instance the TDB's RDIF registration portal. Follow that manager's format, not a generic one.

5. 5

   Clear diligence and structure the instrument

   Expect technical, financial and legal diligence. Negotiate the conversion or repayment terms with the same care as a venture round.