India's Rs 1 lakh crore Research, Development and Innovation (RDI) Fund has picked its first set of investment partners. On Monday (October 12), the fund announced a first cohort of 19 second-level fund managers who will together deploy Rs 7,131 crore of RDI money into technology companies working on high-risk, high-impact research.
The approvals were given by the Empowered Group of Secretaries (EGoS) at a meeting on October 8, 2026. It is the first real step in moving the much-talked-about deep-tech fund from announcement to actual investment.
Background: what the RDI Fund is
The RDI scheme, with a total corpus of Rs 1 lakh crore, was launched by Prime Minister Narendra Modi in November 2025. Its stated goal is to help India move from being a user of technology to a country that builds globally competitive technologies and products.
The fund is designed to fix a long-standing gap: private investors in India have often shied away from patient, long-term money for research-heavy sectors, where returns take years and risks are high. The RDI Fund (RDIF) is meant to provide that patient capital and pull private money in alongside it.
It is managed by an independent business unit of the Anusandhan National Research Foundation (ANRF), under the Department of Science and Technology in the Ministry of Science and Technology.
Key details of the first cohort
| Total RDI scheme corpus | Rs 1 lakh crore |
| First cohort | 19 second-level fund managers (SLFMs) |
| Break-up | 14 Alternative Investment Funds + 5 Focused Research Organisations |
| RDIF commitment | Rs 7,131 crore |
| Approved by | Empowered Group of Secretaries, October 8, 2026 |
| Who gets the money | Eligible technology enterprises at TRL 4 and above |
| Private capital | SLFMs expected to raise matching private funds |
| Managed by | Independent unit of ANRF, under DST |
How the money will flow
RDIF does not invest directly in startups. Instead, it works through second-level fund managers (SLFMs) – a mix of Alternative Investment Funds (AIFs), which are SEBI-regulated pooled funds such as venture capital funds, and Focused Research Organisations (FROs), which are mission-driven research outfits.
These 19 entities will channel RDIF capital to eligible technology enterprises carrying out research, development and innovation at Technology Readiness Level (TRL) 4 and above. TRL is a 1-to-9 scale; level 4 roughly means a technology has moved past the idea stage and has been validated in a lab. Each SLFM is expected to raise private capital matching RDIF's contribution, which could in theory double the money reaching companies.
How the managers were chosen
The first call for applications from prospective fund managers opened in January 2026. Applications went through a multi-stage review that included a detailed evaluation and face-to-face interactions with an expert advisory committee. Shortlisted proposals were then placed before ANRF's Executive Council and finally the EGoS for approval.
The EGoS also approved five more technology areas for inclusion under the RDI Fund, widening the range of sectors that can receive support. The ministry did not name the 19 fund managers or the new technology areas in its announcement.
What it means for India's startups and researchers
For deep-tech founders – in areas like semiconductors, clean energy, advanced materials, biotech or AI – the hardest money to find is usually the money that comes after a working prototype but before a product sells at scale. That is the gap TRL 4-plus funding is aimed at.
With 19 managers now cleared to deploy funds, founders will have specific investors to approach rather than a large government scheme with no clear door. The matching-capital rule also means private investors share the risk, which should push for commercially sound bets.
The government frames the fund as part of a push for technological sovereignty, lower dependence on imported technology and a more innovation-led economy, in line with the Atmanirbhar Bharat and Viksit Bharat 2047 goals.
What happens next
The first cohort will now begin the work of raising matching private capital and building portfolios. RDIF has said it will keep inviting applications for further cohorts of SLFMs in the near future, expanding the fund's reach. Given that Rs 7,131 crore is only a small slice of the Rs 1 lakh crore corpus, more rounds are expected – and how quickly this first batch actually deploys money will be closely watched by the startup ecosystem.
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