India injects $130 billion into R&D to fuel innovation and economic growth
India's Research, Development and Innovation (RDI) fund has been allocated Rs 1 lakh crore (over $130 billion) to boost the country's R&D efforts. This significant investment aims to enhance India's competitiveness and drive growth in key sectors.
The RDI fund, which includes Rs 14,000 crore from the central government, will be mobilized over the next five years, from 2023 to 2028. It aims to provide long-term financing at low or nil interest rates to encourage private sector investment in R&D. The fund will also support existing missions such as the National Quantum Mission and the National Mission on Interdisciplinary Cyber-Physical Systems.
Artificial Intelligence (AI) has been identified as a national priority, with Rs 10,000 crore allocated for the IndiaAI programme. However, the exact details of the remaining Rs 50,000 crore are not yet publicly available.
This substantial investment in R&D comes at a time when India's services sector contributes around 55% of its GDP, while the manufacturing sector has been stagnant at 15-17% for decades. The RDI fund, acting as a sovereign venture capitalist, is expected to spur innovation and risk-taking, potentially transforming India's economic landscape.
