₹1 Lakh Crore Research Fund for Private Sector Nears Approval: India’s Biggest Push Towards Innovation!
Abhishek Patel
13/03/2025
Table of Contents
New Delhi, March 12, 2025 — In a historic move aimed at reshaping India’s research and innovation landscape, the Union government is close to approving a ₹1 lakh crore corpus dedicated to boosting private sector research and development (R&D). This fund, likely to be greenlit by the Union Cabinet in the coming weeks, could become India’s largest R&D financial initiative ever.
This bold step is part of the Anusandhan National Research Foundation (NRF) framework, which was earlier cleared by Parliament in 2023. It aims to create a collaborative R&D ecosystem between academia, government, and the private sector.
₹1 Lakh Crore Research Fund: What You Need to Know
| Feature | Details |
|---|---|
| Initiative Name | Anusandhan National Research Foundation (NRF) |
| Fund Value | ₹1 lakh crore (~$12 billion) |
| Funding Timeline | Spread over 5 years |
| Cabinet Approval Status | Final stage of clearance (expected within weeks) |
| Focus Areas | Science, Tech, AI, Space, Pharma, DeepTech, Climate, Defence & more |
| Primary Beneficiaries | Private R&D firms, startups, academic researchers |
| Government Contribution | ₹36,000 crore over 5 years |
| Private & Industry Contribution | Remaining ₹64,000 crore (expected from corporates & philanthropy) |
Why This Fund Is a Game-Changer for India
- Encourages private investment in deep-tech research, AI, healthcare, defense, space, and climate.
- Bridges the gap between industry and academia.
- Supports high-impact research with commercial potential.
- Strengthens India’s goal to become a global innovation hub.
- Reduces overdependence on government-led R&D spending.
Role of the Anusandhan NRF
The Anusandhan National Research Foundation (NRF) will be the nodal body managing this corpus. Its job will be to:
- Disburse grants to private and academic research institutions.
- Set research priorities aligned with national interest.
- Attract global collaborations and philanthropic investments.
- Ensure transparency and accountability through expert peer-review mechanisms.
What Sets It Apart?
- Unlike traditional research funding dominated by public institutions, this model is private-sector forward.
- Open to private universities, ed-tech startups, pharma giants, and industrial labs.
- Focused on scalable, outcome-driven research rather than academic publishing alone.
India’s Current R&D Scenario vs. What NRF Aims to Fix
| Metric | Current Status | NRF Target |
|---|---|---|
| R&D Expenditure (as % of GDP) | 0.7% | >1.5% within 5 years |
| Private Sector R&D Contribution | ~36% | Boost to 65% with industry involvement |
| Research Patents | Low in Deep-Tech | Aim to lead in AI, Climate Tech, Health |
| Global Innovation Index (Rank) | 40 (2024) | Top 25 by 2030 |
Experts Are Calling It a “Research Revolution”
According to top policy analysts and science educators, this ₹1 lakh crore fund could redefine how India innovates.
“It’s not just about money, it’s about mindset. This fund signals trust in private innovation,” said a senior official involved in the proposal.
When Will It Start?
The fund is expected to become operational immediately after Cabinet clearance, with disbursement guidelines and sectoral calls for proposals being issued by mid-2025.
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FAQs – ₹1 Lakh Crore Research Fund by NRF
Q1. Who can apply for NRF funding?
Startups, private research labs, universities, and collaborative academia-industry projects.
Q2. Will there be a fixed sector-wise allocation?
Likely. AI, space, defense, health, energy, and climate tech are among the priorities.
Q3. Is foreign collaboration allowed?
Yes, under the NRF framework, international partnerships are encouraged.
Q4. What is the role of the government?
The Govt. funds 36%, provides policy oversight, and ensures project evaluation through NRF.
Q5. How is this different from DRDO/ISRO grants?
This is industry-facing, multi-sectoral, and includes private players and universities, unlike niche-focused agencies.
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