Education
Union Budget 2025-26: A New Dawn for India’s Education Sector
The Union Budget 2025-26, announced by Finance Minister Nirmala Sitharaman, has brought a mix of optimism and responsibility to India’s education sector. With ₹78,572 crores allocated to the Department of School Education and Literacy—its highest ever—the government has laid down a roadmap for transforming education through strategic investments in technology, skilling, and inclusion.
Major Allocations for Growth and Inclusivity
A key highlight is the announcement of 50,000 Atal Tinkering Labs in government schools to foster innovation and scientific thinking. Alongside this, the budget’s allocation of ₹42,900 crores for Central Sector Schemes will fund initiatives such as the Pradhan Mantri Innovative Learning Programme (DHRUV) and the National Means-cum-Merit Scholarship Scheme. These programmes aim to provide scholarships and mentorship to talented students, particularly those from economically weaker sections.
The Samagra Shiksha and PM Poshan schemes have also seen increased allocations, receiving ₹41,250 crores and ₹12,500 crores, respectively. Additionally, ₹1,250 crores have been allocated for the New India Literacy Programme and ₹160 crores for the STARS initiative, both critical to addressing foundational literacy and teacher capacity building.
Strengthening Higher Education and Digital Inclusion
Higher education received ₹50,077.95 crores, with a significant push to expand IIT infrastructure, adding seats for 6,500 students across five IITs. Sitharaman emphasised that this was part of a broader effort to align higher education with global standards and industry demands, a sentiment echoed by several educational leaders.
Mr. Nipun Goenka, Managing Director of GD Goenka Group, highlighted the importance of this investment: “The budget’s focus on skilling, research, and AI-driven education reflects a commitment to future-ready competencies. Establishing Centres of Excellence for Skilling and expanding AI education will ensure that students across socio-economic backgrounds can contribute to India’s progress. This year’s focus on broadband connectivity in government schools will democratise access to knowledge and innovation.”
Focus on STEM, AI, and Research Innovation
The government’s investment in STEM education, with 50,000 Atal Tinkering Labs and expanded IIT capacities, was lauded by Mr. Praneet Mungali, Trustee & Secretary, Sanskriti Group Schools. “This investment significantly enhances India’s STEM ecosystem and will foster curiosity and problem-solving abilities in students,” Mr. Mungali said.
The establishment of National Centres of Excellence in AI was another major highlight. Dr. Yajulu Medury, Vice Chancellor of Mahindra University, praised this decision: “These centres, alongside the 10,000 scholarships for technological research, will nurture innovation and position India as a global leader. Expanding IIT infrastructure in Tier-2 cities will further decentralise opportunities and drive tech-based growth across regions.”
Driving Digital and Linguistic Inclusivity
With ₹681 crores allocated for Digital India e-learning, the government aims to bridge the digital divide. Mr. Kanak Gupta, Group Director of MR Jaipuria Group, appreciated this step: “The emphasis on providing digital Indian language books in schools and higher education is critical to ensuring inclusivity. Quality education, accessible in various languages, will provide uniform learning opportunities for all students.”
Mr. Dilip Gangaramani, CEO of Target Learning Ventures, stressed the importance of AI in education, saying: “The establishment of Centres of Excellence in AI will equip educators and students to harness its potential. However, critical thinking must be fostered to help students evaluate AI outputs and identify biases, ensuring well-rounded, responsible digital citizens.”
A Holistic Approach to Skilling and Research
The budget’s emphasis on skilling through the establishment of five National Centres of Excellence was praised by Ms. Charu Kapoor, Country Director, NIIT Foundation: “This investment will help rural skilling by providing digital training opportunities that were previously limited due to poor internet access. The combination of skill-based training and access to resources will empower youth and contribute meaningfully to India’s global standing.”
Similarly, Mr. Kunal Vasudeva, Co-founder of the Indian School of Hospitality, remarked: “Policy is a work in progress—the test now is in execution. We need a 10X mindset in implementing AI-driven research and deep-tech funding. Universities must lead innovation by aligning their research with national priorities, fostering long-term growth.”
Medical and Technical Education Expansion
On the higher education front, Sitharaman’s announcement of expanding IIT Patna’s infrastructure and increasing medical seats by 10,000 this year shows a continued push to address capacity needs. “This infrastructure expansion demonstrates the government’s commitment to producing world-class professionals,” said Mr. Naman Jain, Vice Chairman of Silverline Prestige School. “The allocation to K-12 education must be effectively utilised to make global standards accessible to students from marginalised communities.”
Bridging the Gap Between Policy and Practice
Several experts underlined that bold policy must be matched with execution. Mr. Shishir Jaipuria, Chairman of Seth Anandram Jaipuria Group of Educational Institutions, stated: “Fifty thousand Atal Tinkering Labs, better broadband in government schools, and AI education reflect a holistic and forward-thinking approach. The focus on technological fellowships and skilling will empower young minds to lead innovation in an interconnected world.”
Mr. Sagar Kaushik, Associate Director at Propelld, added: “Removing TCS for education remittances and improving accessibility to digital and medical education will help parents plan better for their children’s future. This budget addresses both immediate and long-term challenges, laying a strong foundation for sustainable growth.”
Therefore, it can easily be said that the Union Budget 2025-26 has set the stage for a transformative phase in India’s education sector. From investments in AI and STEM to skilling and digital inclusion, the focus is clear: building an education system that nurtures innovation and positions India as a global knowledge hub. However, experts stress that its success will depend on effective execution, ensuring that the investments translate into tangible improvements across all levels of education.
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