First group includes 14 alternative investment funds and five research organisations | AI, robotics, biotechnology and quantum technologies among priority areas

New Delhi | October 14, 2026

The Government of India has committed ₹7,131 crore to the first group of 19 fund managers selected under its ₹1 lakh crore Research, Development and Innovation (RDI) scheme, marking a significant step towards expanding long-term financing for technology development and high-risk research.

The selected group comprises 14 alternative investment funds (AIFs) and five research-focused organisations that will channel capital to eligible technology companies. The initiative is intended to strengthen India’s innovation ecosystem by helping businesses pursue research and development that may require substantial investment and longer timelines before generating commercial returns.

According to a government release dated October 12, the Empowered Group of Secretaries approved the first group at its meeting on October 8, 2026.

₹7,131 crore commitment: Who has been selected?

The selected fund managers include several established venture capital and investment firms, alongside research and innovation institutions with links to leading academic centres.

The 14 alternative investment fund managers named in the report are:

1. Blume Ventures
2. Chiratae Ventures
3. Kalaari Capital
4. Speciale Invest
5. YourNest Capital
6. IvyCap Ventures
7. Ideaspring Capital
8. TVS Capital Funds
9. Sixth Sense Ventures
10. Celesta India AIF Managers
11. AdvantEdge Investment Managers
12. AMA Capital Advisors
13. Translation Endeavors
14. Campus

The five selected research organisations are:

1. AI & Robotics Technology Park (ARTPARK), IISc Bengaluru
2. Centre for Cellular and Molecular Platforms (C-CAMP), Bengaluru
3. IIT Madras Research Park
4. Pilani Innovation & Entrepreneurship Development Society, BITS Pilani
5. Society for Innovation & Entrepreneurship, IIT Bombay

The inclusion of both investment firms and research-oriented institutions reflects the scheme’s approach of using different types of fund managers to support eligible technology companies.

Individual allocations to the 19 managers were not disclosed in the published list. The ₹7,131 crore commitment should therefore be understood as the aggregate amount announced for the first group, rather than an allocation of equal size to each manager.

How the ₹1 lakh crore RDI scheme is designed to work

Launched in November 2025, the RDI scheme aims to provide long-term capital for research and development involving high levels of risk.

The government’s approach is to commit funds through selected managers, which will channel financing to eligible technology companies. The selected managers are expected to raise private capital equivalent to the RDI fund’s contribution, potentially expanding the overall pool of investment available for innovation.

This structure is intended to help address a persistent challenge in technology development: promising ideas can require years of research, specialised infrastructure and repeated experimentation before they become commercially viable.

Conventional financing may be difficult to secure for projects where technical uncertainty is high and returns are distant. Patient capital can help companies undertake research, develop prototypes, validate technologies and move towards commercial deployment.

However, the effectiveness of this model will depend on how funding is deployed, which companies qualify, how risks are assessed and whether supported technologies progress towards viable products and services.

Priority areas: From artificial intelligence to energy transition

The scheme identifies several strategic technology areas for support, including:

• Artificial intelligence
• Robotics
• Quantum technologies
• Space technology
• Biotechnology
• Healthcare
• Energy transition

These sectors have the potential to influence India’s future industrial competitiveness, research capabilities and technological resilience.

Artificial intelligence and robotics could support automation and productivity across industries. Quantum technologies and space research require specialised scientific capabilities and long development cycles. Biotechnology and healthcare innovation may contribute to new diagnostics, therapies and medical technologies, while energy-transition research can support efforts to develop cleaner and more efficient systems.

The common requirement across these areas is sustained investment in research, engineering, testing and commercialisation. Funding alone cannot guarantee success, but the availability of capital can help reduce a major barrier faced by technology developers.

Why research institutions matter alongside investment funds

The selection of five research organisations is an important feature of the first group.

Research parks and innovation institutions can help connect scientific research with commercial opportunities by bringing together researchers, entrepreneurs, investors and industry partners. Their participation may support the movement of technologies from laboratories towards prototypes, startups and market applications.

India’s innovation challenge is not limited to generating research. It also involves translating discoveries into products, building businesses around intellectual property, finding early customers and scaling technologies to meet real-world needs.

Closer links between research institutions, investors and companies can help address some of these challenges. The actual impact, however, will depend on the funding models, selection criteria and support mechanisms adopted by the participating organisations.

Private capital and accountability will be critical

The requirement for selected managers to raise private capital equivalent to the RDI fund’s contribution is intended to mobilise additional investment beyond the government commitment.

If implemented successfully, this approach could expand the resources available to eligible technology companies. It may also encourage greater participation by private investors in research-intensive sectors where financing risks are difficult to assess.

But the announced commitment is only the beginning of the process. Important questions remain about the timing of deployment, the amount of private capital ultimately mobilised, the number and types of companies supported, and the outcomes achieved.

The published report does not disclose individual manager allocations, company-level investments or specific employment targets. These should not be inferred from the aggregate commitment.

For the programme to demonstrate lasting value, transparent reporting on capital deployment, research progress, commercial milestones and the sustainability of supported businesses will be essential.

What the RDI scheme could mean for skills and employment

Deep-tech investment has implications beyond research laboratories and startup balance sheets. As companies develop and commercialise advanced technologies, they may require scientists, engineers, technicians, product developers and specialised manufacturing workers.

The precise workforce impact will vary by sector. AI and robotics businesses may need expertise in software, data, systems integration and automation. Biotechnology and healthcare ventures may require laboratory, quality-assurance and regulatory capabilities. Space and advanced manufacturing companies may depend on precision engineering, testing and specialised technical skills.

For India’s skills and education ecosystem, the opportunity is to connect emerging investment with workforce development. Universities, research institutions, technical colleges and industry-led training providers can help prepare people for the occupations that develop as these technologies move from research into production and deployment.

Yet investment commitments should not automatically be equated with jobs created. Employment benefits will depend on whether funded companies progress, expand their operations and develop sustainable commercial activity.

More fund managers to be selected

The government has indicated that applications will continue to be invited and additional groups of fund managers selected in the near future.

The first group therefore represents an initial stage in implementing the broader ₹1 lakh crore scheme. Further selections could widen the network of investment managers and research institutions involved in financing eligible technology companies.

The long-term test will be whether the programme can help India develop technologies domestically, strengthen the commercialisation of research and build globally competitive businesses in strategically important sectors.

From funding commitments to technological capability

The ₹7,131 crore commitment marks a substantial announced allocation under the RDI scheme and signals the government’s intention to expand financing for high-risk research and innovation.

Its ultimate significance, however, will be measured by what the capital enables: technologies developed, research translated into commercial products, companies strengthened, private investment mobilised and skilled employment created.

For India’s innovation ecosystem, the central challenge is to turn patient capital into practical technological capability. The RDI scheme will be judged not only by how much money it commits, but by whether that investment helps move Indian research from promising ideas to technologies that can compete, scale and deliver lasting economic value.