India has put serious money behind deep tech, including AI — but for a founder, the important thing is understanding how that money moves (through funds and institutions), not just how big the headline number is. (dgm implements osFoundry, a separate company’s platform — dgm is an independent integration partner, not osFoundry, and not a deep-tech fund advisor. General information, not investment or grant advice.)

The headline vehicles

  • RDI Scheme (Research, Development and Innovation) — launched 3 Nov 2025, ₹1 lakh crore over FY25-26→FY30-31 (₹20,000 cr in year one), for deep-tech innovation including AI, quantum, semiconductors, biotech. Deployed via a Special Purpose Fund under ANRF — long-term low/zero-interest loans, equity, and fund-of-funds contributions. PIB
  • Startup India Fund of Funds 2.0 — separate, ₹10,000 crore via SIDBI into SEBI-registered AIFs.

A common honest correction: these are distinct. Don’t let marketing conflate the RDI Scheme, FoF 2.0, and a loosely-labelled “Deep Tech Fund of Funds” — they’re different structures with different mechanics.

Why “capital-mobilisation” matters to you

The corpus figures are total pools, not money available to any one startup. Capital reaches startups indirectly:

  • through SEBI-registered AIFs that the funds invest in, which then back startups (you pitch the fund manager);
  • through long-term loans or equity for qualifying deep-tech R&D, often institution-mediated.

So access is competitive and intermediated — closer to raising venture capital than collecting a grant.

What this means for an AI founder

  • If you’re doing genuine deep-tech R&D, these vehicles expand the capital available in the ecosystem — useful, but via investors and institutions.
  • If you’re an established business adopting AI, this isn’t your route at all (see who qualifies).
  • Pair fundraising with DPIIT recognition for tax/IPR relief and, if you train models, subsidised IndiaAI compute.

Where dgm fits

dgm doesn’t raise or advise on deep-tech funding — work with VCs, AIFs, incubators or a specialist for that. We’re an integration partner: once you’re building AI, we implement it on osFoundry (model-neutral, self-hostable, India data control) for a transparent $399 assessment and $3,999/month (INR approximate; 18% GST domestic).

General information, not investment or grant advice. Confirm current scheme status on official portals; corpus figures are total pools, not per-startup entitlements.