ANRF Approves Framework to Roll Out ₹1 Lakh Crore Innovation Fund for Indian Industry
SDG 9: Industry, Innovation & Infrastructure | SDG 17: Partnerships for the Goals
Institutions: Ministry of Science & Technology
On October 11 2025, the Anusandhan National Research Foundation (ANRF) approved key steps to operationalise India’s ₹1 lakh crore Research, Development & Innovation (RDI) Fund. The decision, taken by the ANRF Executive Council, finalised the Fund’s governance, financial, and implementation framework, including a Special Purpose Fund (SPF) to manage the corpus, new Special Financial Rules, and guidelines for fund management and oversight. Drafted by the Department of Science & Technology with inputs from the Departments of Economic Affairs and Expenditure, the framework enables a two-tier funding structure: the SPF will route capital to professional fund managers such as AIFs, DFIs, and NBFCs, who will invest in innovation-driven enterprises. The SPF itself will not directly fund startups. These approvals clear the final regulatory and institutional groundwork before the Fund’s launch.
By establishing governance and financial rules upfront, the ANRF ensures credibility, transparency, and investor confidence. The two-tier model shifts the government’s role from direct investor to strategic enabler, aligning with global innovation-finance practice. The move positions India to expand private-sector research capacity, link academia with enterprise, and reduce dependence on public grants as the main source of R&D funding.
Who are AIFs, DFIs, and NBFCs?
AIFs (Alternative Investment Funds): Privately pooled investment vehicles that channel funds from high-net-worth investors into startups, infrastructure, or R&D ventures.
DFIs (Development Finance Institutions): Government-supported entities like SIDBI or NABARD that provide long-term financing for strategic sectors.
NBFCs (Non-Banking Financial Companies): Financial institutions that lend and invest like banks but do not hold deposits; they often finance innovation and MSME growth.
In the RDI Fund structure, these entities will serve as second-level fund managers — assessing proposals, investing in R&D-intensive firms, and reporting performance to the Special Purpose Fund (SPF) under ANRF oversight.
Relevant Question for Policy Stakeholders:
How can India ensure that private fund managers channel investments toward nationally critical innovation areas rather than short-term commercial returns?
Follow the full news here: Press Information Bureau, Government of India