The Government of India has announced a landmark initiative to fund innovation and R&D projects undertaken by listed public limited companies, marking a strategic push to position India as a global hub for industrial innovation and advanced technology development. Launched by the Ministry of Corporate Affairs (MCA) in collaboration with the Department for Promotion of Industry and Internal Trade (DPIIT) and the Office of the Principal Scientific Adviser, the initiative is aimed at supporting transformational projects in sectors such as clean energy, biotechnology, semiconductors, AI, manufacturing automation, and smart infrastructure.

Beginning January 1, 2028, eligible listed companies can apply for government funding through a newly created platform called the Innovation Acceleration Grant Portal (IAGP). Projects will be evaluated based on novelty, scalability, sustainability impact, and alignment with national industrial policy priorities. The scheme will offer matching grants up to ₹50 crore, low-interest R&D loans, and access to public research facilities, provided companies contribute a minimum of 30% from internal or private sources. Priority will be given to companies with a strong track record of compliance, governance, and domestic value creation.

To ensure transparency and impact, funded companies must submit bi-annual technical progress reports, third-party audits, and public disclosures on innovation outcomes and market deployment. Companies will also benefit from tax incentives under Section 35 of the Income Tax Act for eligible R&D expenditures and may receive additional credit points under their ESG and CSR reporting frameworks. Industry analysts have welcomed the initiative as a much-needed bridge between public capital markets and national innovation goals, calling it a catalyst for high-impact research, job creation, and future-ready industrial growth in India’s listed corporate sector.