Union Budget 2025-26: An Opportunity to Revolutionise India’s Education and Skilling Landscape

As India prepares for the announcement of the Union Budget 2025-26, all eyes are on the government’s allocation of funds towards education and skilling. The BJP-led government, now in its first term since re-election in 2024, has an opportunity to set the tone for the next five years, addressing long-standing issues of underfunding while building on past efforts to improve accessibility. This budget is expected to be pivotal in aligning the country’s education system with the demands of a rapidly evolving global economy, as industry experts weigh in on their expectations.

Addressing Key Gaps with Higher Budgetary Allocation

Praveen Singh, CEO of Aasoka (research-based blended curriculum developers for K-12), emphasises the importance of increasing investment in education to 6% of the GDP, which is in line with the ambitions of NEP 2020. “Such investment will be crucial for enhancing public-private partnerships, expanding skilling initiatives, and creating sustainable employment opportunities that contribute to individual empowerment and national economic growth,” Singh said. He also highlighted that achieving ambitious Gross Enrolment Ratio (GER) targets in higher education requires leveraging technology and online learning. However, to achieve this, policies must prioritise accessibility and the improvement of learning outcomes.

“Many educational institutions face challenges due to outdated infrastructure and limited technological resources. Addressing these gaps, along with equipping students and faculty with proper tools and training, is vital to preparing future generations for a tech-driven job market,” Singh added, calling for a clear policy roadmap that ensures effective delivery of critical learning skills.

Digital Infrastructure and Inclusive Learning: The Road Ahead

Aarul Malaviya, Founder of Zamit (an AI-driven ed-tech platform), believes that the upcoming budget should prioritise digital infrastructure and inclusive learning. “Increased allocations for technology integration in schools, tax incentives for EdTech platforms, and support for teacher training initiatives can drive innovation and accessibility. With a growing focus on future-ready skills, we anticipate measures that strengthen collaboration between industry and academia, enabling India to nurture a workforce equipped for the challenges of tomorrow,” Malaviya said.

Advertisement

Echoing this sentiment, Naman Jain, Vice-Chairman of Silverline Prestige School, highlighted the need for comprehensive digital integration in K-12 education. “It is essential to dedicate funds toward improving internet access, supplying modern devices, and equipping both educators and students with necessary digital competencies. Schools can provide interactive and personalised learning experiences using technologies such as artificial intelligence, augmented reality, and virtual reality, ensuring equitable access to high-quality education,” Jain said. He also called for increasing the current 4% of GDP allocated to education to 6%, aligning investments with advancements in AI and technology while addressing schools’ fundamental needs.

Holistic Learning and Skill Development at the Core

Dilip Gangaramani, Founder & Managing Director of Target Learning Ventures, pointed out that holistic child development should be a key focus of this year’s budget. “Robust support in implementing play-based learning methodologies, investments in teacher training, and the establishment of specialised labs—such as robotics and astronomy labs—can empower students with critical thinking and problem-solving skills,” Gangaramani suggested. He also stressed the importance of bridging the digital divide, particularly for marginalised communities, and ensuring access to quality education through increased government support for digital learning resources.

Naman Jain further emphasised the importance of skilling, particularly in emerging fields like AI, data science, and renewable energy. “A concentrated effort on equipping individuals with future-ready employable skills is necessary to provide hands-on experience, especially in creative industries. The government should prioritise investments in AI hubs, centres of excellence, and regulatory frameworks for the EdTech sector,” he stated.

Fostering Innovation Through Industry Collaboration

Dr. Yajulu Medury, Vice Chancellor of Mahindra University, highlighted the need for public-private partnerships to make education more accessible and effective. “Increased financial incentives, simplified regulatory frameworks, and enhanced incubation support can stimulate technological advancements. Establishing centres of excellence and fostering interdisciplinary education can bridge the gap between academic knowledge and practical application,” Medury noted.

Dr. Sanjay Gupta, Vice Chancellor of the World University of Design, emphasised India’s potential in the creative economy. “Our animation, AR/VR, and design sectors are already demonstrating world-class capabilities. By combining our cost-effective talent pool with strategic policy support, we can transform from a service provider into a global creative powerhouse,” Gupta said.

Advertisement

The Role of Fintech in Education Access

Nikunj Agarwal, CFO of Propelld (a FinTech startup specializing in education lending), highlighted the importance of improving credit accessibility for non-banking financial companies (NBFCs) in the education sector. “The private education landscape plays a pivotal role in fostering innovation and skill development in India. We urge policymakers to implement reforms that enable lower lending rates and promote co-lending models, thereby facilitating easier access to funds for students,” Agarwal said.

Building on Past Investments

The Union Budget 2024-25 allocated ₹1.48 lakh crore for education, employment, and skilling, representing a 7.7% increase from the previous year. Key areas included increased funds for school education, higher education, research and development, internationalisation, and foundational literacy and numeracy. Initiatives were also introduced to skill 20 lakh students over five years and provide internship opportunities for one crore youth.

The upcoming budget will need to expand on these efforts, ensuring that investments are not only increased but effectively utilised to deliver tangible outcomes. With the education sector being a critical driver of India’s future workforce, experts believe that this budget could be a game-changer, setting the nation on a path toward sustainable growth and global competitiveness.

All in all, the Union Budget 2025-26 presents an opportunity to address fundamental issues in the education sector and drive innovation through strategic investments. With experts calling for increased funding, policy reforms, and public-private collaboration, this budget could mark a significant step in shaping a future-ready India.

Advertisement