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How India Can Build a Globally Competitive Deep-Tech Ecosystem
India wants to create more advanced technologies using its own scientists and companies.
At present, much Indian research happens in government laboratories and leading universities.
It can be difficult to turn that research into products that businesses and people can use.
The United States connects universities, government agencies, investors and companies more closely.
Its Bayh-Dole law lets universities and researchers benefit from inventions funded by public money.
The United States also uses DARPA to fund risky projects until they are ready for private investment.
India has created a ₹1 lakh crore fund to support similar development between early research and commercial products.
To work well, the fund must make decisions faster, accept genuine technical failures and support smaller institutions as well as large companies.
India’s R&D system concentrates public spending in government laboratories and elite academic institutions, while private funding and technology transfer remain limited.
The United States links government funding, universities, venture capital and industry through a “Triple-Helix” innovation model.
The Bayh-Dole Act enabled US universities and researchers to own publicly funded inventions and commercialise them through licensing and startups.
India’s ₹1 lakh crore Research, Development and Innovation scheme aims to provide long-term, low-cost financing for technologies moving from laboratory research toward commercialisation.
The scheme’s success depends on reducing bureaucratic risk aversion, speeding technical evaluations and ensuring funding reaches startups, universities and emerging research clusters.
- Who
- The Government of India, the Anusandhan National Research Foundation, private companies, research institutions, startups and fund managers are central to the proposal.
- What
- India is developing a ₹1 lakh crore Research, Development and Innovation scheme to finance deep-tech research, technology development and commercialisation.
- Where
- The proposal applies across India, with emphasis on broad participation beyond established institutions and regions.
- When
- The article does not specify when the scheme will be fully implemented.
- Why
- The scheme aims to connect scientific research with long-term capital and industry, reduce dependence on foreign technology imports and build sovereign capabilities in strategic sectors.
Arguments for the RDI approach
Implementation concerns
Public funding and risk-taking
Arguments for the RDI approach
Long-term, low-cost public financing can de-risk high-risk technologies and attract private capital once commercial prospects become clearer.
Implementation concerns
Post-facto scrutiny and fear of accountability may encourage fund managers to avoid projects with uncertain outcomes, even when technical failure is genuine.
Centralised versus broad allocation
Arguments for the RDI approach
Delegating funds to domain-focused Second Level Fund Managers can improve technical assessment, speed deployment and align financing with market needs.
Implementation concerns
Established companies and institutions may capture funding unless safeguards support startups, university research departments, smaller research bodies and Tier-2 clusters.
Research versus commercialisation
Arguments for the RDI approach
Targeting TRL 4–7 addresses the funding gap between laboratory research and commercially viable products.
Implementation concerns
Specialised valuation and underwriting for pre-revenue technologies are time-consuming, and limited appraisal expertise could delay funding.
Key facts
- RDI corpus
- ₹1 lakh crore under the Anusandhan National Research Foundation
- Financing period
- A 50-year, interest-free corpus allocated by the central government
- Loan terms
- Interest-free financing for pre-commercial research and approximately 2%–4% interest for later stages
- Target technology-readiness levels
- TRL 4–7, including prototyping, pilot validation, industrial testbeds and technology acquisition
- Priority sectors
- Artificial intelligence, quantum technology, space science, defence, robotics, clean energy, semiconductors and digital healthcare
- Fund managers
- Second Level Fund Managers include the Technology Development Board and Biotechnology Industry Research Assistance Council
- Main implementation risks
- Risk-averse governance, slow technical appraisal and concentration of funds among established institutions and regions
Sources
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