New Delhi, July 8 -- In a major step to strengthen India's innovation ecosystem, the Union Cabinet has approved the Research Development and Innovation (RDI) scheme, aiming to significantly enhance private sector participation in research and development (R&D).

The initiative, named the Anusandhan National Research Foundation, proposes the creation of a Rs 1 lakh crore fund to provide low-interest, long-term loans to private firms for research in emerging and strategic sectors.

The government hopes this will bridge the current R&D gap and boost innovation-driven growth.

The scheme will operate through a two-tier model. The first tier will manage the special purpose fund, while the second tier, comprising fund managers, will distribute ...