ESTIC 2025: PM Modi Announces ₹1 Lakh Crore Fund to Spur Private Research and Innovation

Prime Minister Narendra Modi on Monday launched the ESTIC 2025 initiative, unveiling a ₹1 lakh crore Research, Development, and Innovation (RDI) Fund aimed at accelerating India’s transition into a global technology and innovation hub. The fund seeks to encourage private sector investment in deep technology, scientific research, and strategic innovations, aligning with the government’s goal of making India self-reliant in emerging industries.

The RDI Fund will be structured as a “fund of funds”, with government-backed first-level capital being managed by professional second-level fund managers. These managers will direct investments into start-ups, technology ventures, and research-driven enterprises working in areas such as semiconductors, renewable energy, biotechnology, and artificial intelligence.

To ensure transparency and professional oversight, recommendations for support will be made by second-level fund managers through investment committees comprising experts from financial, business, and technical domains. These committees will operate at arm’s length from the government, ensuring that project selection and funding decisions are guided by merit, innovation potential, and long-term national impact rather than bureaucratic control.

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Highlighting the initiative, Prime Minister Modi said the fund reflects India’s commitment to creating the next generation of innovators and entrepreneurs. He noted that the RDI Fund will not only promote cutting-edge technologies but also strengthen India’s role in global supply chains. “This is a step toward building a knowledge-driven economy that empowers youth and researchers alike,” the Prime Minister said.

The fund is expected to mobilise significant private co-investment, with a multiplier effect anticipated to exceed ₹5 lakh crore over the next decade. It will also focus on bridging the gap between academia and industry by supporting university-linked incubators, technology transfer offices, and collaborative R&D centres.

Officials said the RDI Fund will begin operations in early 2026, with an initial allocation of ₹20,000 crore from the government. Subsequent phases will expand funding to priority sectors identified under India’s National Deep Tech Policy, making it one of the largest innovation-orientated financial frameworks in the country’s history.

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