Sunrise Sectors Get a Boost: RDI Scheme Powers India’s Next Startup Wave

Updated: July 06, 2025 13:37

India’s startup ecosystem just got a major upgrade. The government’s new Research, Development and Innovation (RDI) scheme, approved on July 1, is set to transform how startups and manufacturers in sunrise sectors—like AI, robotics, quantum tech, biotech, and semiconductors—access funding, scale up, and compete globally.

Massive Funding Pool

The RDI scheme brings a ₹1 lakh crore (₹100,000 crore) corpus, with ₹20,000 crore already allocated for this fiscal year.
Funds will be distributed through long-term, low or zero-interest loans and equity investments, making it easier for startups to take on high-risk, high-reward projects.

Focus on Sunrise Sectors

Priority sectors include quantum computing, robotics, artificial intelligence, clean energy, biotech, and advanced manufacturing.
The scheme aims to help India catch up with global leaders in R&D, as the country’s current R&D spend is just 0.65% of GDP—far below the global average.

Deep-Tech Fund of Funds

A dedicated Deep-Tech Fund of Funds will channel private and public capital into high-impact projects, supporting both early-stage startups and established firms.
Startups can access structured financing without the usual risk aversion of banks or VCs, and even participate in national strategic projects.

Streamlined Oversight and Flexibility

The Anusandhan National Research Foundation (ANRF) will oversee the scheme, with input from ministries and technical experts to ensure funds reach the most promising technologies.
Any ministry can propose new technologies for inclusion, keeping the scheme flexible and responsive to emerging trends.

Domestic Manufacturing Push

By supporting R&D in critical technologies, the scheme is expected to boost domestic manufacturing of high-end goods, create high-skill jobs, and reduce reliance on imports.

Industry Reaction

Experts and industry leaders are calling the RDI scheme a “game-changer” for India’s deep-tech and manufacturing ambitions, with the potential to create a globally competitive innovation ecosystem.

The Bottom Line

With the RDI scheme, India is betting big on its innovators. Startups in sunrise sectors now have the capital, support, and policy backing to turn bold ideas into world-class products—and help make India a leader in the industries of tomorrow.

Sources: Economic Times, CNBC-TV18, TechShots, Financial Express

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