The Ministry of Science and Technology has announced 19 institutions as Second Level Fund Managers under the Research, Development and Innovation Fund (RDIF), a Rs 1 lakh crore scheme launched by the Government of India in November 2025. An Empowered Group of Secretaries approved 14 Alternative Investment Funds and 5 Focused Research Organisations on October 8, 2026, with a combined RDIF commitment of Rs 7,131 crore.
The announcement marks the first operational cohort of fund managers tasked with investing in Indian companies working on emerging and strategic technologies. These institutions will funnel government capital to private enterprises engaged in research and development work, with an expectation that they will raise matching private investment.
Key facts
- 19 Second Level Fund Managers approved in the first cohort
- Rs 7,131 crore RDIF commitment to these fund managers
- 14 Alternative Investment Funds and 5 Focused Research Organisations approved
- Applications were invited in January 2026
- RDIF scheme launched in November 2025 with total corpus of Rs 1 lakh crore
- Managed by Anusandhan National Research Foundation under Department of Science and Technology
What the RDIF does
The Research, Development and Innovation Fund addresses a long-standing financing gap in India’s private sector research ecosystem. Traditionally, private companies have avoided investing heavily in high-risk, long-term research and development because returns are uncertain and take many years to materialise. The RDIF provides patient capital—money that does not demand quick profits—to fill this gap.
The scheme targets companies working on technologies categorised as “Science 4 Technology,” meaning research with practical applications for building real products and services. Supported companies must have reached Technology Readiness Level 4 or above, meaning their research has moved beyond laboratory prototypes to pilot-stage or near-commercial development.
How the fund managers will work
The 19 approved institutions—comprising both Alternative Investment Funds and Focused Research Organisations—will act as intermediaries. They will receive RDIF capital and invest it directly in Eligible Technology Enterprises, which are companies working on research and development in specified technology domains. The fund managers are expected to match government investment with private capital, meaning they should raise their own money alongside RDIF funds.
This structure leverages private sector expertise and creates a distributed network of investment managers rather than centralised government decision-making. Each fund manager can assess technologies and companies within their own specialisation.
Selection process and criteria
The first applications were invited in January 2026 and underwent rigorous evaluation. Prospective fund managers had to submit detailed proposals that were assessed by an Expert Advisory Committee. Shortlisted institutions then met the committee in person for further evaluation. Proposals were reviewed by the Executive Council of Anusandhan National Research Foundation before being approved by the Empowered Group of Secretaries.
Connection to broader national goals
The RDIF aligns with the government’s vision of making India technologically self-reliant under the Atmanirbhar Bharat framework and achieving developed nation status by 2047. By funding research into emerging technologies, the scheme aims to reduce India’s dependence on imported technology, build globally competitive domestic capabilities, and position the country as a technology provider rather than merely a technology consumer.
What this means for you
If you are a researcher or entrepreneur developing new technology at a semi-advanced stage, this fund opens a potential source of financing. The 19 approved fund managers will seek out companies with promising innovations and provide them with capital to scale development and commercialisation efforts.
For India’s broader innovation ecosystem, the scheme signals sustained government commitment to bridging the funding gap that has historically constrained private research investment. It also creates employment opportunities in fund management and technology advisory roles.
What happens next
The RDIF will continue to invite applications from new prospective fund managers. Additional cohorts of Second Level Fund Managers are expected to be onboarded in the coming months and years. The scheme will also expand the list of eligible technologies for RDIF support beyond the initial set.