The Indian government has taken a significant step in bolstering the country’s deep tech sector by disbursing the first set of funds under the Rs 1 lakh crore Research, Development and Innovation (RDI) Scheme. This initiative marks a crucial point for India’s tech ecosystem, focusing on bridging the gap between prototype development and market-ready products, a phase that has traditionally posed challenges for Indian startups.
### Understanding the RDI Scheme
The RDI Scheme, approved by the Union Cabinet in July 2025 and launched in November 2025, is a strategic effort to inject Rs 1 lakh crore over six years into private sector enterprises working on groundbreaking and strategic technologies. Managed under the Anusandhan National Research Foundation (ANRF), with entities like the Technology Development Board (TDB) and BIRAC as fund managers, the scheme aims to foster innovation by supporting startups at Technology Readiness Levels 4 to 6.
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The funding mechanisms include long-term loans with low-interest rates, equity participation, and hybrid structures, offering startups flexible financial support to scale their operations. The first call for proposals, launched in February 2026, received an overwhelming response, reflecting the high demand for such government-backed initiatives.
### The First Cohort of Deep Tech Startups
The initial beneficiaries of the RDI Scheme include five promising startups: Dhruva Space, Endure Air, ETRNL Energy, Noccarc Robotics, and IISTEM Research. These companies, selected for their innovative projects, represent a diverse range of sectors within the deep tech domain.
Dhruva Space, based in Hyderabad, has been awarded Rs 105 crore for Project Garud, which aims to develop a modular satellite platform for various applications such as telecom and national security. Endure Air Systems from Noida is focusing on an unmanned helicopter platform designed for challenging environments. Maharashtra’s ETRNL Energy will channel its funds into producing advanced lithium-ion battery cells, crucial for energy storage solutions.
### Implications for India’s Startup Ecosystem
The launch of the RDI Scheme’s funding is a significant boon for India’s startup ecosystem, particularly those working in deep tech—a sector often requiring heavy upfront investment and prolonged R&D phases. By de-risking private investment in such high-potential areas, the government is not only encouraging innovation but also positioning India as a global leader in technology development.
This funding initiative could potentially accelerate the growth of the country’s technology infrastructure, promote local manufacturing, and enhance India’s competitiveness on the international stage. For investors, this represents a promising opportunity to engage with cutting-edge technologies backed by governmental support, mitigating risks associated with early-stage investments.
The distribution of the first cheques is a promising start, but the real test will be the sustained implementation and expansion of the scheme to a broader array of startups and technologies. Stakeholders will be keenly observing the performance of these initial beneficiaries as a measure of the scheme’s impact and potential.
As the RDI Scheme progresses, founders and investors should watch for subsequent funding rounds and the technological advancements these pioneering startups achieve. The outcomes will provide crucial insights into the viability of government-backed innovation funding and its role in shaping India’s future as a tech powerhouse.
