Modi unveils USD 12 bn fund to back deeptech and research-led growth: Prime Minister Narendra Modi launched a new INR 1 tn (USD 12 bn) Research, Development, and Innovation (RDI) fund to scale private-sector-led research and tech innovation, as per a press release. The initiative will institutionalize financing for innovation under the Department of Science and Technology of the government and Anusandhan National Research Foundation, a government body developing strategy for research and scientific innovation. Focus areas include energy transition, space, biotech, robotics, AI, and quantum computing.

How the fund works: The fund will deploy long-term, low, or zero-interest loans and equity infusions for high-impact research and startups. This will take place via alternate investment funds, development finance institutions, non banking financial companies, and research-focused bodies of the Indian government such as the Technology Development Board and the Biotechnology Industry Research Assistance Council.

Background: India’s current R&D spending — a trickle compared to other major emerging markets — is at 0.6% of the country’s GDP compared to 2.4% in China.

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