Building new technology in India is expensive long before it earns a single rupee. Lab tests, prototypes, certifications and patents all need cash, and banks rarely lend against an unproven idea.
That is where R&D funding programs come in. Run by agencies such as DST, BIRAC, TDB, MeitY and DPIIT, they can help eligible innovators prove a concept, build a prototype and move towards the market with less financial pressure.
In this guide, you will see the main options, how they differ, who qualifies, how to apply and how to choose. Scheme terms change often, so confirm every detail on the official page before you apply.
What Are R&D Funding Programs?
R&D funding programs are public schemes that finance research, prototyping and technology commercialisation by eligible startups, innovators and companies. The type of money matters as much as the amount:
- Grant: support you generally do not repay, such as prototype or proof-of-concept grants.
- Soft loan: a loan at concessional interest, repaid on agreed terms.
- Convertible debt or equity: an investment that may convert into ownership.
- Commercialisation support: incubation, fabrication labs, mentoring and market access.
They can cover proof of concept, laboratory work, prototype development, product testing, patent filing and early scale-up. What you may spend money on depends entirely on each scheme’s guidelines, so read them before budgeting.
Best R&D Funding Programs for Indian Startups
The main routes in 2026 are the RDI Scheme, TDB project funding, BIRAC’s BIG, NIDHI-PRAYAS, the Startup India Seed Fund Scheme and MeitY’s TIDE 2.0. They support different stages and instruments, so they are not interchangeable.
| Program | Implementing agency | Type of support | Intended focus | Eligibility highlights |
| RDI Scheme | ANRF (custodian); DST nodal; TDB and BIRAC as fund managers | Long-term low or nil-interest loans; equity possible, mainly for startups | Deep-tech and sunrise sectors at higher readiness levels | Indian-registered, resident-Indian-controlled entities; reported TRL 4–6; apply to a fund manager, not ANRF |
| TDB project funding | Technology Development Board (DST) | Soft loan at 5% simple interest; equity up to 25% of project cost; grants only in exceptional cases | Indian companies commercialising indigenous technology | Company under the Companies Act; applications accepted year-round |
| BIRAC BIG | BIRAC (DBT) | Grant-in-aid up to ₹50 lakh over 18 months | Biotech and medtech proof of concept | Eligible company or incubated individual via a BIG partner; calls are periodic |
| NIDHI-PRAYAS | NSTEDB, DST | Prototype grant up to ₹10 lakh (about 18 months) | Idea-stage hardware innovators | Individuals or teams; applied through a PRAYAS Centre; usable once |
| Startup India Seed Fund Scheme (SISFS) | DPIIT | Up to ₹20 lakh grant; up to ₹50 lakh convertible debentures or debt | Proof of concept to early commercialisation | DPIIT-recognised, under two years old; apply via an empanelled incubator |
| MeitY TIDE 2.0 | MeitY / MeitY Startup Hub | Grants through TIDE incubators (₹4–7 lakh reported by host incubators) | ICT startups using AI, IoT, robotics and similar tech | Apply through a recognised TIDE incubation centre |
What Changed in 2026 | The RDI Scheme
The Union Cabinet approved the ₹1 lakh crore Research, Development and Innovation (RDI) Scheme on 1 July 2025. Money flows from a fund under the Anusandhan National Research Foundation to second-level fund managers, which then lend to or invest in projects. Startups cannot apply to ANRF directly.
TDB signed its first agreements with five deep-tech startups on 13 May 2026, and BIRAC opened its first call in February 2026, with OCPS-based investments up to ₹25 crore for biotech startups beyond ideation. Reports from September 2026 say TDB’s first cohort covers 22 projects, but rollout has been gradual. Treat it as a loan-and-equity route for technology at higher readiness, not a grant.
Other Points Worth Knowing
- TDB loan share: TDB’s own material describes loans up to 50% of project cost. Some listings report up to 70% for smaller projects after a 2023 revision, so confirm on tdb.gov.in.
- SAMRIDH: MeitY Startup Hub’s accelerator-linked scheme has reported matching support up to ₹40 lakh for software-product startups. It is acceleration-led rather than pure R&D funding, and its current intake should be verified.
- SISFS validity: The scheme was approved for four years from 2021-22. Check the portal for the current cycle.
- Defence tech: iDEX (Ministry of Defence) funds startups building defence and aerospace technology.
Eligibility Criteria for R&D Funding in India
Eligibility differs by scheme. These are common considerations, not universal rules:
- Legal entity: Indian incorporation (a registered company or LLP), often with majority Indian ownership.
- DPIIT recognition: required for SISFS, but not for PRAYAS, which accepts individual innovators.
- Technology readiness: PRAYAS stops at prototype; BIG targets proof of concept; RDI targets higher readiness levels.
- Innovation and feasibility: a clear technical objective and commercial potential.
- Team: qualified founders or research partners, sometimes an institutional link.
- IP ownership: most schemes expect the innovator or startup to hold the IP.
- Incubator route: SISFS, PRAYAS, TIDE 2.0 and BIG partner-led applications go through institutions.
- Overlap limits: prior government support can reduce or block eligibility.
How To Apply for R&D Funding Programs?
Timelines and stages vary by scheme, but the path usually looks like this:
- Define the research problem and what is genuinely new.
- Shortlist programs that match your sector, stage and funding type.
- Verify eligibility and call status on the official page.
- Write the project proposal with a technical roadmap.
- Build a realistic budget tied to milestones.
- Assemble documents from the official checklist.
- Submit through the official portal, incubator or fund manager.
- Respond to evaluation: technical review, due diligence or a pitch.
- Track milestones, utilisation and reporting if funded. Many grants release money in tranches, and some require unused funds to be returned.
Documents Required for R&D Funding Applications
Commonly requested documents, where applicable:
- Certificate of incorporation.
- DPIIT recognition certificate.
- Founder and team profiles.
- Detailed project proposal.
- Technical feasibility or proof-of-concept report.
- Project budget and funding utilisation plan.
- Business plan and commercialisation strategy.
- Financial statements or projections.
- IP documentation (including trademark registration).
- Pitch deck and product prototype details.
- Incubator or institutional recommendation, if required.
Follow each scheme’s official checklist; not every document is mandatory everywhere.
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How To Choose The Right R&D Funding Program?
Compare programs on sector, maturity, funding type, allowed expenses, repayment or dilution, timelines and reporting load. Some practical starting points, with no guarantee of eligibility:
- Biotech or medtech founder with early data: look at BIRAC BIG, then the RDI route through BIRAC as you mature.
- Hardware inventor with an idea and no company yet: NIDHI-PRAYAS suits the idea-to-prototype gap.
- AI or IoT software startup: MeitY TIDE 2.0 incubators and SAMRIDH-linked accelerators.
- Manufacturing or clean-tech company with a working prototype: TDB project funding or the RDI Scheme through TDB.
- Recently incorporated DPIIT startup: SISFS for proof of concept and early scaling.
Also ask: can you handle a repayment schedule, equity dilution or milestone reporting? If not, compare bank-credit routes for MSMEs, such as the CGTMSE scheme or the Tarun Mudra loan.
Common Mistakes to Avoid When Applying
| Mistake | Practical fix |
| Applying without checking eligibility | Read the guidelines and call notice first |
| Choosing a scheme that does not fit your technology | Match sector and readiness level before drafting |
| Vague technical objectives | State measurable outcomes and milestones |
| Unrealistic budgets or timelines | Tie each cost to a deliverable |
| Weak proof of innovation | Add test data, a prototype or a feasibility note |
| Ignoring IP and regulatory needs | Confirm IP ownership and approvals early |
| Confusing grants with loans or equity | List repayment and dilution terms side by side |
| Missing deadlines or documents | Keep a checklist and submit early |
Key Takeaways
- R&D support comes as grants, soft loans, convertible debt or equity. Know which one you are applying for.
- Early-stage options include NIDHI-PRAYAS, BIRAC BIG, SISFS and TIDE 2.0.
- The RDI Scheme and TDB serve higher-readiness technology and work mainly through loans and equity.
- Many schemes route through incubators or fund managers, not direct application.
- Always confirm eligibility and status on official sources.
Conclusion
The right R&D funding program is the one that fits your research objective, technology maturity and tolerance for repayment or dilution. A prototype-stage idea and a pilot-ready product need very different instruments.
Verify eligibility and application status on official sources before you apply. For plain-language guidance on startup schemes and funding options, browse the Knowledge Centre, join an expert-led webinar, explore membership, or contact us at Udyamita Helpline.
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FAQs
There is no single best option. Biotech founders often look at BIRAC BIG, idea-stage hardware teams at NIDHI-PRAYAS, DPIIT startups at SISFS, and higher-readiness deep-tech companies at TDB or the RDI Scheme. Your stage and sector decide.
Yes, some schemes target early stages. NIDHI-PRAYAS funds up to ₹10 lakh for prototypes, BIG up to ₹50 lakh for biotech proof of concept, and SISFS supports young DPIIT startups. Approval is never guaranteed.
It depends on the scheme. BIG, PRAYAS and SISFS’s ₹20 lakh component are grants. TDB and RDI funding are mainly concessional loans, and SISFS’s ₹50 lakh is debt or convertible debentures. Read the terms.
Not always. SISFS requires it, while NIDHI-PRAYAS accepts individual innovators. Some fund managers and incubators may ask for it, so check each call’s eligibility notice.
Often yes, but overlap rules apply. PRAYAS can be used once, and other schemes cap or restrict prior government support for the same work. Declare existing funding honestly.
Expect incorporation proof, DPIIT certificate where relevant, a project proposal, budget, team profiles, IP details and financials. The official checklist for your scheme is the final word.
There is no fixed timeline. BIG uses periodic calls with staged evaluation, TDB accepts applications through the year, and the RDI Scheme is still rolling out. Plan for months, not weeks.
