New Delhi: Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2025, announced a series of measures aimed at strengthening India’s education sector.
The budget outlines several initiatives to expand higher education infrastructure, enhance research opportunities, and improve digital access in schools.
Budget Highlights for Education:
Expansion of IIT Infrastructure: Additional infrastructure will be created in five Indian Institutes of Technology (IITs) established after 2014 to accommodate 6,500 more students. The hostel and other facilities at IIT Patna will also be improved.
PM Research Fellowship Scheme: The government will provide 10,000 fellowships for technological research in IITs and the Indian Institute of Science (IISc), with enhanced financial support.
Medical Education Expansion: In the next year, 10,000 additional seats will be added in medical colleges and hospitals, with a long-term target of 75,000 new seats over five years.
National Centers of Excellence for Skilling: Five centres will be set up with global expertise to equip students with industry-relevant skills.
Broadband Connectivity in Schools: All government secondary schools and primary healthcare centres will be provided with broadband connectivity.
Atal Tinkering Labs Expansion: The government aims to establish 50,000 Atal Tinkering Labs in the next five years to promote scientific research and innovation among students.
National Institute of Food Technology in Bihar: A new institute will be established to support value addition in agriculture, entrepreneurship, and skill development for youth.
Rural Skilling and Development Program: A multi-sectoral initiative will be launched in partnership with state governments to create employment opportunities in rural areas through skill training.
Union Budget 2025: Education Sector Receives Significant Increase in Funding
In the Union Budget 2025-26, Finance Minister Nirmala Sitharaman allocated Rs 1,28,650 crore to education, marking a 6.65 per cent rise from last year. The Department of School Education received Rs 78,572 crore, which makes up 61 per cent of the total education budget.
Key initiatives include a Rs 1,450 crore increase for the PM SHRI program, bringing the total to Rs 7,500 crore to upgrade 15,000 schools under the National Education Policy. The PM POSHAN scheme, which provides mid-day meals to students, received a boost to Rs 12,500 crore.
Additionally, the STARS project will be allocated Rs 1,250 crore to improve educational outcomes. For skill development, a new initiative will train 20 lakh youth over the next five years, while 1,000 ITIs will be revamped. Students can now access loans up to Rs 10 lakh for higher education. The government also introduced an internship scheme for one crore youth, offering stipends and financial aid.
Budget 2025: Experts Weigh in on AI, Skilling, and Innovation for a Future-Ready Workforce
The Union Budget 2025-26 emphasizes building a skilled, innovative workforce by focusing on education and technology. Jaideep Kewalramani, COO of TeamLease Edtech, highlights that “the path to Viksit Bharat lies in embracing AI and digital opportunities, along with a commitment to education and innovation.”
He stresses that employability today requires practical skills and adaptability, which is why the government’s creation of a Centre of Excellence in AI for Education is so significant, bridging the gap between academic knowledge and industry needs.
Kewalramani adds, “AI-driven education democratizes access to knowledge and enables real-time skill development, preparing a globally competitive workforce.” This complements initiatives like expanding IITs and establishing National Centres of Excellence for Skilling to support Industry 4.0 readiness.
Dhriti Prasanna Mahanta, Vice-President at TeamLease, emphasizes that the budget’s focus on education, skilling, and inclusion is vital for future workforce growth. She also advocates for integrating industry internships into PM Research Fellowships, ensuring that education stays relevant to tech industry demands.
The budget’s focus on skill development and innovation aims to empower youth, especially in underserved regions, positioning India as a global leader in deep-tech advancements.
Analysis of Education Budget in Union Demand for Grants 2024-25
The Union Ministry of Education has been allocated Rs 1,20,628 crore for 2024-25, a 7per cent decrease from the revised estimate for 2023-24. The Department of School Education received Rs 73,008 crore (0.7 per cent increase), with 51 per cent allocated to Samagra Shiksha Abhiyan.
The Department of Higher Education saw a 17 per cent cut, receiving Rs 47,620 crore, with reduced funding for UGC (-61 per cent) and IITs (-0.6 per cent). Key announcements include a 3 per cent interest subsidy on education loans and investment in digital infrastructure. Overall, education spending remains below the 6 per cent of GDP target recommended by the National Education Policy 2020.
Government’s Vision for Education
During her budget speech, the Finance Minister emphasized the government’s vision for Vikashit Bharat, which includes ensuring 100 per cent quality education, skilled labour, and meaningful employment opportunities.
The focus remains on expanding AI-driven learning, vocational training, and bridging the urban-rural education divide. With a mix of infrastructure expansion, research incentives, and digital education initiatives, the Union Budget 2025 sets the tone for India’s evolving education landscape.
