India's deep-tech moment? 22 projects get backing under ₹1 lakh crore RDI Fund

Pinnacle Industries founder and chairman Sudhir Mehta, who is a member of the Technology Development Board's Investment Committee under the ₹1 lakh crore RDI Fund, on Tuesday said he was "more optimistic about India’s future than at any point" after reviewing proposals from Indian founders.

Mehta said the first cohort reviewed by the committee comprises 22 projects involving ₹4,744 crore in R&D, with ₹2,192 crore in funding from the RDI Fund. The companies are putting up more than half of the money themselves, he said.

Of the 22 projects, 14 are startups, and 13 are in deep-tech areas, including reusable launch vehicles, earth observation satellites, quantum-secure communication, Indian chip design, drones, robotics, and next-generation batteries.

Read More: Ultraviolette raises $85 million funding led by deep tech fund Yali Capital, TDK Ventures

The projects come from Bengaluru, Chennai, Hyderabad, Mumbai, Thane, Noida, and Pune, Mehta said.

"India's problem was never ideas. It was patient capital," the industrialist said.

India spends 0.64% of its GDP on R&D, while private industry funds about 36% of that spending, he added.

Under the RDI Fund, funding is available at 3% to 4% interest for up to 15 years, with no collateral or personal guarantees. Proposals are evaluated in eight weeks and the money is expected to be provided in 12 weeks, according to Mehta.

He said the funding comes with two conditions: intellectual property must remain in India and control must remain with Indian citizens.

In Case You Missed It: How India’s deep-tech ecosystem is at an inflection point

How the RDI scheme works

The government's Research, Development and Innovation Scheme is a ₹1 lakh crore financing programme aimed at encouraging Indian private companies and startups to undertake high-risk R&D and develop new technologies into commercial products.

The Union Cabinet approved the scheme on July 1, 2025, for six years. Prime Minister Narendra Modi formally launched it on November 3, 2025.

The ₹1 lakh crore corpus is held through a Special Purpose Fund under the Anusandhan National Research Foundation.

The ANRF does not directly select companies or invest in them. Instead, it provides capital to Second-Level Fund Managers, which can include alternative investment funds, development finance institutions, non-banking financial companies and specialised organisations.

The Technology Development Board and Biotechnology Industry Research Assistance Council are among the Second-Level Fund Managers appointed under the scheme.

After reviewing the proposals, Mehta said he was confident about the prospects of Indian deep-tech companies. "After sitting across the table from these founders, I have no doubt. India's top-notch deep tech companies are being built right now. The capital is ready. The founders are ready. This decade belongs to Indian deep tech," he said.