Union Budget 2025 Highlights: Education ministry gets Rs 1.28 lakh crore, check other highlights

Documentation and conservation of our manuscript heritage to cover more than 1 crore manuscripts. National Digital Repository of Indian knowledge systems for knowledge sharing to be set up

The Union Budget aims to provide ten thousand fellowships from Centre for technological research in IITs and IISc.

"10,000 medical seats and 5 additional IITs is a much desired step to increase employability and also productivity in the country. Apart from this the step to set up 5 National Centres of Excellence will give further boost to the much required productivity of Indian workers. Employability of youth who pursue streams other than engineering, medical and management is very poor. Overall in India as per Dec 2024, employability of Indian graduates is just 54%. For management graduates it is 78% which is the highest. With this poor employability one can’t blame the economy for not creating jobs,"

--Says Dr Vikas Prakash Director - PGPM & Professor, Great Lakes Institute of Management, Gurgaon

The Ministry of Education has been allocated more than Rs 1.28 lakh crore in the Union Budget 2025-26, higher than the revised estimate of Rs 1.14 lakh crore in 2024-25. While the Higher Education department has been allocated an amount of Rs 50,067 crore, the school education department has received Rs 78,572 crore.

From University Grants Commission (UGC) to National Council of Education Research and Training (NCERT), most bodies under the Ministry of Education have received an increased allocation.

Top business schools -- Indian Institutes of Managements (IIMs), which witnessed consistent cut in their allocated budget in a push to make them self-reliant, have also received an increased allocation of Rs 251 crore as against a revised estimate of Rs 227 crore last year.

However, the budget granted to the Indian Institute of Science, Education and Research (IISERs) has seen a drop of Rs 137 crore. Similarly, the allocated amount for World Class Institutions, has been reduced by more than 50 per cent. Last year, the amount allocated was Rs 1000 crore which has now been reduced to Rs 475 crore.

The Union Budget 2025-26 sets the right direction with AI-driven education, research fellowships, deep-tech funding, and global skilling partnerships. These are crucial steps toward positioning education as an economic powerhouse. However, policy is always a work in progress—the real test is execution. If India is to leapfrog in education the way it did in digitization, we need a 10X mindset in implementation, institutional accountability, and adaptability.

The focus must now shift to outcome-driven reforms—aligning research with national priorities, empowering universities to lead innovation, and embedding competency-building over mere skilling. This decade will define India’s global standing. Bold policy must now meet bold execution.

Kunal Vasudeva, co-founder and managing director, Indian School of Hospitality

Expressing gratitude, the Union Education Minister Dharmendra Pradhan said: " This will make education and skill development more equitable and accessible, provide our #amritpeedhi and #yuvashakti with a broader canvas to express themselves and contribute to making India a knowledge-based economy."

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The 2025 budget showcases the government’s commitment to empowering Indian youth with the skills and opportunities needed to thrive in a globalized world. By addressing the full spectrum of education—from expanding seats in premier institutions to fostering innovation through Centres of Excellence in AI—the budget paves the way for India to strengthen its position as a global hub for skilled talent.

The removal of TCS, on education-related remittances funded through loans is a particularly commendable step, easing financial barriers for students aspiring to study abroad. This forward-thinking approach ensures that India’s youth have access to the best opportunities, both within the country and globally.

- Piyush Kumar Regional Director - South Asia, Canada, Latin America and Mauritius, IDP Education.

Dr Dhruv Chauhan, a national council member of the Indian Medical Association (IMA) condemn the announcement of increase in the number of seats in medical colleges.

https://twitter.com/DrDhruvchauhan/status/1885594998806138946

The Union Budget 2025-26 is a transformative step toward empowering India’s student community and enhancing global student mobility. The government’s revisions to the Tax Collected at Source (TCS) system under the Liberalized Remittance Scheme (LRS) will significantly ease the financial burden on families. With over 1.3 million Indian students contributing more than US$60 billion in outward remittances, the increase in the TCS threshold from Rs 7 lakh to Rs 10 lakh is a clear recognition of the financial challenges families face. The removal of TCS on remittances funded through education loans is a welcome move, ensuring financial constraints no longer hinder access to world-class education.

This student-centric budget reinforces the government’s commitment to making education more accessible, affordable, and inclusive, while solidifying India’s position as a global talent hub. The expansion of IITs, 50,000 Atal Tinkering Labs, and the Centre of Excellence in Artificial Intelligence with Rs 500 crore funding reflect a strong focus on skilling the youth. Additionally, the streamlined process for claiming TCS refunds will simplify financial planning for students and families. With these measures, higher education becomes more accessible, helping create a future-ready generation of students.

- Saurabh Arora, Founder & CEO, University Living

Budget 2025 has focused well on growth coupled with inclusivity through multiple policy initiatives and allocation of funds. India’s future growth would depend much upon innovation and entrepreneurship for wealth creation and productive jobs creation in labour intensive sectors that has been given a due emphasis through the Make in India initiative. Budget has emphasized on education and skill development by allocation of Rs 1.48 lakh crore to education, employment, and skill development; 10,000 fellowships for technological research in IITs with enhanced financial support, research and development expenditure in private sector to promote deep tech ventures, center of excellence in AI focused on education etc. The allocation of Rs 20000 crore to promote research in the private sector will give a push to "Make in India" initiatives through deep tech ventures. However, this would require a big push to R&D expenditure to GDP from around 0.65% to at least the world average of 1.79% for accelerating our rankings in Global Innovation Index and to become a hub for high end manufacturing.

- Prof. Arya Kumar, Dean of Alumni Relations, BITS Pilani

The Budget 2025 is visionary in enhancing India's higher education, women empowerment, and entrepreneurship as pillars of an inclusive, equitable, innovation-led economy. In this budget, ₹500 crore for AI Centres of Excellence and the establishment of five national skilling centres have been put as strong commitments of the government. By providing and integrating AI into the education and skill development sectors, it ensures that students will be ready to meet emerging opportunities in all the sectors.

Additionally, the initiative to set up 50,000 Atal Tinkering Labs under the Budget 2025 is a transformative step towards fostering innovation and hands-on learning in science, technology, engineering, and mathematics (STEM). This will enable students to develop critical problem-solving skills, preparing a future-ready workforce in line with India's digital and technological aspirations.

IIMs, including IIM Sambalpur are working towards the vision by developing specialized STEM-based programs such as MBA in Business Analytics, AI in learning methodology, and Women Empowerment programs that help bridge technology and management so that students become leaders in the world of data-driven decision-making, Fintech, and AI-powered industries. I believe that by integrating STEM with management education, IIMs are preparing students for high-impact careers while driving India's goal of becoming a global innovation powerhouse.

- Prof Mahadeo Jaiswal, director, IIM Sambalpur

The Union Budget of 2025 certainly shows a great focus on steps to develop education technology in India. The move to ensure broadband connectivity is done to all government run secondary schools needs no emphasis as it will help close the digital gap and allow smooth access of information to students. Visionary steps like establishment of five National Centres Of Excellence for youth will ensure focused skill development and world ready education. Train the Trainers, Skill Training of the youth will ensure more employability. Introduction of Digital Language book " Bhasa Pustak" will help promotion of all regional language.

It is encouraging to note that IIT enrollment has increased from 65000 to 135000 in the last couple of years and even further development of infrastructure by the government is a positive signal towards world class STEM education. Also, the latest announcement on establishment of a Centre of Excellence in AI for Education will make great positive changes in innovation, research and business collaboration, ensuring that India is able to keep pace with the rest of the world in new age technologies. Expansion of medical education in adding 10k seats next year and 70k seats in next 5 years will add strength to healthcare sectors.

- Sukanta Parida, admission and marketing director, Centurion University

Taking a swipe at the Modi government over its budget announcements, the Congress on Saturday said Bihar appears to have got a bonanza and asked why the other pillar of the NDA, Andhra Pradesh, has been so "cruelly ignored". Bihar remained in focus in the presentation of the Union Budget for the fiscal 2025-26 with Finance Minister Nirmala Sitharaman making several announcements for the state, including setting up of a Makhana Board, financial support for western Kosi canal and support for enhancing capacity of IIT Patna. Presenting her record eighth Union Budget in the Lok Sabha, the finance minister also announced that the Centre will establish a National Institute of Food Technology, entrepreneurship and management in Bihar and also facilitate greenfield airports there to meet the future needs of the state.

Congress general secretary in-charge communications Jairam Ramesh said Bihar appears to have got a bonanza of announcements. "It is natural since elections are due there later in the year. But why is (has) the other pillar of the NDA, namely Andhra Pradesh, been so cruelly ignored?" Ramesh said on X in an apparent reference to BJP allies JD(U) from Bihar and TDP from Andhra Pradesh. The Congress leader also hit out at the government over announcements related to nutritional support programmes like Saksham Anganwadi and Poshan 2.0.

"The Finance Minister has announced the revision of cost norms in Saksham anganwadi and Poshan 2.0 -- after many years of turning down this demand. The FM has however not extended this announcement to - inclusion of breakfast in schools; provision of a glass of milk, as is done in Karnataka through the Ksheera Bhagya Scheme; upward revision in honorarium given to Anganwadi workers," he said.

"The Union Education and WCD Ministries themselves have been pushing for these proposals for years, only to be turned down by the Finance Ministry. What kind of investment in people is the Finance Minister envisioning without these basic provisions?" Ramesh said.

- The Saksham Anganwadi and Poshan 2.0 programme provides nutritional support to more than 8 crore children, 1 crore pregnant women and lactating mothers all over the country, and about 20 lakh adolescent girls in aspirational districts and the north-east region. The cost norms for the nutritional support will be enhanced appropriately.

- 50,000 Atal Tinkering Labs will be set up in Government schools in next 5 years to cultivate the spirit of curiosity and innovation, and foster a scientific temper among young minds.

- Broadband connectivity will be provided to all Government secondary schools and primary health centres in rural areas under the Bharatnet project.

- Implement a Bharatiya Bhasha Pustak Scheme to provide digital-form Indian language books for school and higher education. This aims to help students understand their subjects better.

- Building on the initiative announced in the July 2024 Budget, five National Centres of Excellence for skilling will be set up with global expertise and partnerships to equip our youth with the skills required for “Make for India, Make for the World” manufacturing. The partnerships will cover curriculum design, training of trainers, a skills certification framework, and periodic reviews.

- Total number of students in 23 IITs has increased 100 per cent from 65,000 to 1.35 lakh in the past 10 years. Additional infrastructure will be created in the 5 IITs started after 2014 to facilitate education for 6,500 more students. Hostel and other infrastructure capacity at IIT Patna will also be expanded.

- A Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of Rs 500 crore.

- Government has added almost 1.1 lakh UG and PG medical education seats in ten years, an increase of 130 per cent. In the next year, 10,000 additional seats will be added in medical colleges and hospitals, towards the goal of adding 75,000 seats in the next 5 years.

- Facilitate setting up of daycare cancer centres in all district hospitals over the next three years and 200 of these will be established in 2025-26

- Gig workers will be provided healthcare facilities under the PM Jan Aarogya Yojana (PM-JAY). Likely to assist nearly 1 crore workers.

- 10,000 additional seats will be added in medical colleges and hospitals towards the goal of adding 75,000 seats in the next five years

- Facilitate setting up of daycare cancer centres in all district hospitals in the next three years. 200 centres will be established in 2025-26 itself

- Broadband connectivity will be provided to all government secondary schools and primary healthcare centres

- In the next year, 10,000 additional seats will be added in medical colleges and hospitals towards the goal of adding 75,000 seats in the next five years

Government exempts TCS for remittances for education purposes in cases where education loan is taken from specified financial institutions.

The 2025-26 Budget extends the period of incorporation by 5 years for Startups to avail tax benefits.

No income tax payable for annual income upto Rs 12 lakh.

https://twitter.com/PIB_India/status/1885571339647623381

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The FM also announced day care centres in all district hospitals in the next 3 years. As many as 200 such centres will be set up in 2025-26.

https://twitter.com/PIB_India/status/1885574370481102930

We are unsure if increasing of seats in the existing IITs shall do major good to the country; instead, the Government should focus in improving the quality and outcome of education in the existing engineering colleges of the country and make them sustainable. That would set up the tone for higher private investments in higher education.

- Shantanu Rooj, Founder and CEO, TeamLease Edtech

In the next 5 years, the FM announced in her budget, as many as 10,000 fellowships for tech research in the IIT and IISc will be provided.

Next year 10,000 seats will be added in medical colleges and hospitals, the FM announced, adding that as many as 75,000 seats will be added in next five years.

Presenting the Union Budget 2025, Union Finance Minister Nirmala Sitharaman announced broadband connectivity will be provided to all government secondary schools and primary healthcare centres.

FM Sitharaman announces setting up of five national centres for skilling with global expertise.

Government will launch a Bharartiya Bhasha Pushtak scheme to provide digital form of Indian language books for schools and higher education, the Finance Minister announced.

Government will be creating additional infrastructure in five IITs started after 2014 and expand IIT Patna, the FM announced.

The Finance Minister in her eighth consecutive budget announced the set up of 50,000 Atal Tinkering Labs in the next 5 years to cultivate scientific temper in young minds.

Govt to establish national institute of food technology, entreprenuership and management in Bihar, the Finance Minister announced.

Government to launch rural prosperity, resilience programme focussing on youth, women and farmers, says Finance Minister.

Presenting the Union Budget 2025, Union Finance Minister Nirmala Sitharaman said that this will be a “journey to unlock our potential for greater prosperity."

"Indian economy is fastest growing among all developing economies. We see the next five years as unique opportunity to stimulate growth,” she added.

Viksit Bharat will have zero poverty, quality education, high-quality, affordable and comprehensive healthcare, says FM Sitharaman.

The Union Finance Minister Nirmala Sitharaman is now presenting the Budget 2025-26 on the Parliament.

The Budget Session is unfolding in two phases — the first running between February 1 and February 13, and the second scheduled from March 10 to April 4. On January 31, the Finance Minister Nirmala Sitharaman also tabled the Economic Survey 2024-25 in the Parliament.

President Draupadi Murmu offered 'dahi-cheeni' (curd-sugar) to FM Nirmala Sitharaman before presenting the Budget 2025.

According to the Economic Survey 2024-25, school dropout rates14 have steadily declined in recent years, standing at 1.9 per cent for primary, 5.2 per cent for upper primary, and 14.1 per cent for secondary levels.

India’s employment and HRTech sectors will grow and this will be driven by emerging technologies. We feel there will be a 20% increase in the job market because of fields like AI, machine learning, and cybersecurity, alongside sector-specific hiring opportunities. Skills-based hiring is the need of the hour and this is why programs like Skill India Digital will play a crucial role in preparing the youth for the digital economy. What is also important is aligning the student’s skills with the requirements of the industry. We hope there will be a continued support for entrepreneurship, through increased investment in sectors like AI and IoT and the simplification of regulatory processes, will create a more conducive environment for startups, encouraging innovation and job creation.

There’s a strong possibility that more funds will be allocated to skilling initiatives, building on the government's previous efforts for 41 million individuals and the Rs 4520 crore allocated to the Ministry of Skill Development and Entrepreneurship. We anticipate an increase in this year’s allocation to further boost skill development and job creation, with a greater focus on state-wise distribution of funds.

The key trends we see in 2025 will be AI driven recruitment and workforce planning along with AI tools streamlining hiring, reducing biases, and enhancing HR functions through predictive analytics and task automation. Skills based hiring will take the spotlight as employers will prioritize skills over traditional qualifications.

- Ankit Aggarwal, Founder & CEO of Unstop, talent attraction, assessment and hiring platform for Gen Zs

In Union Budget 2025 we hope for continued emphasis on STEM education, AI-driven learning, and the implementation of NEP objectives. The past year’s budget announcements laid a strong foundation with initiatives like increased focus on digital education and skill development. Building on this momentum, we anticipate more targeted investments in advanced STEM research, AI adoption in higher education, and micro-credential programs. These measures will not only enhance employability but also position India as a global leader in education and innovation.

- Dr Ashok Kumar Mittal, Chancellor, Lovely Professional University

With 10 million graduates and 12 million entering the workforce annually, India faces the dual challenge of job creation and employability. With a GER of 28.4% in higher education, bridging the skill gap is crucial. The PM Internship Scheme (PMIS), launched in the previous budget, is a game-changer in enhancing employability. Its first phase saw 6.5 lakh applications for 1.3 lakh internships across 280 companies. The second phase, launched in January, aims to expand corporate participation to 500 companies, boosting applications by 60-70% and intake by 30%.

PMIS is also expected to drive a 10-15% increase in CSR spending on skilling. The government plans to further expand the initiative, fostering industry-academia collaboration and equipping youth with practical skills. By emphasizing internships, apprenticeships, and skilling, PMIS strengthens India's workforce, enhances productivity, and supports economic growth, positioning itself as a key driver of sustainable development.

- Dhriti Prasanna Mahanta, Vice President & Business Head at TeamLease Degree Apprenticeship

Social sector policies need to consider the complex interplay of multiple factors which eventually determine their success. For example, a policy to improve school education may not be very effective without policies related to healthcare, food and nutritional security, access to transport facilities, and household income playing as the contributing factors to a child continuing school.

- Economic Survey 2024-25

As we anticipate the upcoming budget, our hope is that the government prioritizes strategic investments in human capital, recognizing its pivotal role in driving sustainable and inclusive economic growth. This entails a multi-pronged approach encompassing robust support for skill development initiatives that align with evolving industry demands, fostering a thriving research and innovation ecosystem through enhanced funding and industry-academia partnerships, and ensuring equitable access to quality education at all levels. We believe that a budget focused on empowering our youth with relevant skills, fostering a culture of innovation, and promoting inclusive education will not only enhance employability and drive economic progress but also lay the foundation for a more prosperous and equitable future for India.

Fr. Dr. K.S. Casimir, Director of XLRI Delhi-NCR

Foreign university partners play a crucial role in advancing India’s 2025 development goals by strengthening education, skilling, research, and innovation.

1. Industry-Academia Collaboration: Facilitate joint R&D in AI, sustainability, healthcare, and manufacturing; enhance curriculum alignment with global industry needs.

2. Skilling & Workforce Development: Support India’s skilling mission through world-class training, centers of excellence in digital fields, and industry-led apprenticeships.

3. Digital & AI-Integrated Learning: Expand virtual labs, AI-driven education, and digital inclusion initiatives to enhance accessibility.

4. Internationalisation of Higher Education: Promote joint degrees, student/faculty exchanges, and offshore campuses to position India as a global education hub.

5. Research & Innovation: Align projects with sustainability, clean energy, healthcare, and indigenous technology development under ‘Make in India.’

6. Policy Advisory & Capacity Building: Aid NEP 2020 implementation, faculty training, and policy development for skill-based education.

With India's 2025 focus on digital learning, AI, and research, foreign university collaborations are key to building a globally competitive workforce and advancing India's knowledge economy.

- Ravneet Pawha, Vice President (Global Engagement) and CEO (South Asia), Deakin University

The 2025 budget is expected to introduce forward-looking reforms that enhance digital learning, expand access, and strengthen industry-academia collaborations. Some of the anticipated priorities include:

- Increased funding for digital infrastructure, including virtual labs and the Digital University initiative.

- Greater integration of AI, machine learning, and data sciences into curricula.

- Targeted investments to bridge the digital divide in rural areas.

- Expansion of skill-based education with a focus on hands-on training and internships.

- Reduction or elimination of GST on educational services and digital learning tools to make education more affordable.

These initiatives will ensure that students are equipped with the skills necessary for a rapidly evolving job market.

Ravneet Pawha, Vice President (Global Engagement) and CEO (South Asia), Deakin University

The upcoming Union Budget is expected to prioritize the modernization and inclusivity of India’s education sector, aligning with the National Education Policy (NEP) 2020 and India’s aspirations to become a global knowledge hub.

One key focus area could be digital education. The digital divide has widened post-pandemic, especially in rural and underserved areas. The government will likely allocate substantial resources to bridge this gap by improving internet connectivity, providing devices, and investing in digital tools for schools and colleges. Expanding access to platforms like DIKSHA and strengthening the digital learning ecosystem will be critical.

Another area of emphasis could be skill development and vocational training. Programs designed to enhance employability for youth, particularly in Tier-2 and Tier-3 cities, may see increased funding. This aligns with India’s push toward industrial growth, especially in high-demand sectors like IT, hospitality, and green energy.

Additionally, higher education may be boosted through incentives for international collaborations, research funding, and promoting India as a global education destination. Scholarships for economically weaker students and support for private institutions driving excellence might also feature. The budget will likely focus on accessibility, employability, and global competitiveness, reflecting a roadmap for bridging economic and educational disparities across India.

- Kunal Vasudeva, Co-founder & Managing Director of the Indian School of Hospitality

The 2024 budget allocated Rs 1.48 lakh crore to education, employment and skilling, reflecting the government’s commitment to building a future-ready workforce. Key measures included strengthening the skilling and apprenticeship ecosystem, creating internship opportunities for 1 crore youth, and employment-linked incentives for first-time employees. Significant financial support was also introduced, including Model Skill Loans up to Rs 7.5 lakh for 25,000 students annually and education loans up to Rs 10 lakh with a 3 per cent interest subvention for domestic higher education. These initiatives have laid a strong foundation for the education sector’s growth.

“As the Union Budget 2025 draws near, ICAI remains optimistic about the government’s vision for shaping an inclusive and progressive India. We look forward to reforms that can empower the education and promote ease of doing business, both of which are critical to the nation’s growth story.

We hope for measures that simplify compliance for professionals, rationalise taxation for start-ups, and incentivise ESG-led initiatives through tax benefits. Aligning tax provisions with global benchmarks and supporting innovation will accelerate India’s journey to becoming a global economic leader.

We are confident that a forward-looking budget will enable ICAI and the larger professional community to contribute even more significantly to the nation’s sustainable and inclusive development. Together, we can build a robust framework that uplifts every segment of society and drives India’s aspirations to new heights.

- CA Ranjeet Kumar Agarwal, President, ICAI

As we look ahead to the Union Budget 2025, it is essential that we move beyond incremental measures and take transformative steps to bridge the widening gap between education, skilling, and employability. While last year’s focus on employment-linked skilling schemes and financial support for education loans was encouraging, the true challenge lies in driving systemic change that integrates skilling into the DNA of higher education. We urge the government to strengthen the Model Skilling Loan Scheme, ensuring it includes targeted funding for industry-aligned, short-term certifications that enhance employability in dynamic sectors like marketing, technology, and digital innovation. Additionally, the salary eligibility cap for employment incentives should be revised upwards to reflect the rising aspirations and realities of India’s knowledge economy. Educational institutions must be incentivized—and held accountable—to embed experiential learning, internships, and mentorships as a core part of their programmes. The burden of making students workforce-ready cannot rest solely on companies. At the same time, investments in AI hubs, EdTech regulatory frameworks, and a nationwide push toward digital-first classrooms are non-negotiable if we want to future-proof our workforce. We hope this budget delivers not just on numbers but also on systems and accountability. India’s youth need more than degrees; they need a cohesive ecosystem that empowers them to become industry leaders from day one.

- Varun satia, Founder & CEO, Kraftshala

In Union Budget 2025 we hope for continued emphasis on STEM education, AI-driven learning, and the implementation of NEP objectives. The past year’s budget announcements laid a strong foundation with initiatives like increased focus on digital education and skill development. Building on this momentum, we anticipate more targeted investments in advanced STEM research, AI adoption in higher education, and micro-credential programs. These measures will not only enhance employability but also position India as a global leader in education and innovation.

- Dr Ashok Kumar Mittal, Chancellor, Lovely Professional University

As we approach the upcoming Union Budget 2025, I am very much optimistic about the government's continued focus on fostering innovation, entrepreneurship, and skill development. Policies supporting incubation centers, small startups, and the creation of globally recognized Indian brands will be more significant in driving economic growth, promoting innovation and empowering the next generation of entrepreneurs, which should be the focus area for government also.

We also look forward to such empowering initiatives, promoting international collaborations and partnerships as that is the only way through which the Indian education system can compete globally. Enabling international dual-degree programs, joint research endeavors, and student exchange programs with global universities, alongside working closely with international NGOs and aligning with Sustainable Development Goal 17, will be instrumental in enhancing India’s global standing in education and research.

At IIM Sambalpur, we believe such measures will not only strengthen the innovation ecosystem but also position India as a hub for academic excellence and sustainable development in the global arena.

- Prof Mahadeo Jaiswal, IIM Sambalpur Director

The government must focus more on vocational skills to prepare people for real-world jobs. Vocational education is not just an option anymore; it is essential for helping students gain future-ready skills and improving employability. By creating special funds for industry-academia collaboration, programs like research internships and technology partnerships can grow. These will help students learn practical skills and make education more relevant to job market needs.

To achieve the goal of increasing the Gross Enrolment Ratio (GER) in higher education, we must invest in infrastructure and resources. This means building more classrooms, upgrading facilities, and including vocational education as a core part of the system. Recruiting and training teachers should also be a priority to ensure better education quality.

India can also improve its global standing in education by collaborating with international universities and encouraging private and EdTech partnerships. This will help attract more foreign students and strengthen the education system.

An increase in the education budget is a strong and positive step. However, we must ensure that the money is used effectively. The focus should be on building infrastructure and investing in teachers and students. A skilled workforce, inclusive education system, and global competitiveness are the key to making India a leader in education and development in the 21st century."

- Er. Koneru Lakshman Havish, Vice President, KL Deemed to Be University

The government is expected to offer tax relief for corporate grants to educational institutions, thereby encouraging collaborations to improve infrastructure and research initiatives.

Additionally, Public-Private Partnerships (PPP) are likely to be prioritized in the upcoming budget to address infrastructure gaps and resource constraints in disadvantaged areas, fostering holistic growth. To achieve the objectives out in the National Education Policy (NEP), the budget is expected to prioritize expanding access to education in underserved regions, enhancing digital infrastructure, and advancing research in educational technology and pedagogy.

- Nipun Goenka, Managing Director, GD Goenka Group

Considering the 2025 budget is around the corner, the emphasis on skill development in India has never been higher. With an outlay of Rs 1.20 lakh crore for education and skill development programs in the previous budget, this upcoming budget seems likely to make education an even more highlighted sector. This investment is very important to bridge the skill gap and to equip the workforce for a dynamic job market.

To accelerate job creation, we suggest that the incentives be directed toward labour-intensive industries such as textiles and food processing, sectors that have a remarkable multiplier effect on the rural economy. Also, investing resources in technology innovation improves the quality of blue-collar jobs and standardizes the economy. Financial and other support to employers and workers is needed to enable skill acquisition, incentivizing cross-sectoral partnerships between education and industry to develop job-prepared curricula.

The current increase in the Labour Force Participation Rate (LFPR) reveals a positive trend, with men at 74.7% and women at 25.2%. Increase in LFPR has been good for men, but increasing for women should be a key priority. At the same time, as we tap into this demographic dividend, creating a unified database that matches market needs with available skills is essential; mainly, using the professional certification of blue-collar occupations is not less critical.

These actions, in the end, aim at making employment better and at triggering economic activity on both sides of the demand economy and the supply, in order to create a more skilled talent that will help to drive the Indian economy.

- Vikram Kumar, head of partnership & communication, NIIT Foundation

On the announcement of the Economic Survey 2025, I believe the future of education will be shaped by the integration of AI and digital technologies. AI can make a big difference in the way teachers work, automating tasks like lesson planning, assessments, and personalized teaching. This will free up time for educators to focus more on mentoring and helping students think critically. AI-powered tutors will also provide tailored learning experiences for students, offering guidance based on their individual needs, as well as career advice and problem-solving support.

The government's efforts to push digital education through initiatives like PM eVidya, DIKSHA, and SWAYAM are key steps in this direction. By adding AI and machine learning to these platforms, we can provide quality education to a larger number of students. Additionally, partnerships between industries and universities are essential for equipping students with the skills they need in the real world. Programs like Apprenticeship Embedded Degrees and the National Credit Framework (NCrF) are great ways to link academic learning with practical experience.

Building AI-powered learning labs, especially in fields like robotics, cybersecurity, and blockchain, will give students hands-on experience in emerging technologies. With initiatives like Frontier Technology Labs (FTLs), students will be better prepared for the digital future. As education continues to evolve, leveraging AI and digital tools will be key to making learning more accessible, inclusive, and future-ready.

- Anurag Gupta, Co-Founder of STEMROBO

As we approach the Union Budget 2025-26, we anticipate measures that will further strengthen India’s education landscape and position the country as a global leader in talent mobility. Expanding financial support for students pursuing international education, such as reducing tax collection at source (TCS) rates and increasing subsidies, can empower students to access world-class learning opportunities abroad. At the same time, streamlining regulatory frameworks to attract foreign universities to establish campuses in India will create globally competitive, affordable education options domestically.

Additionally, fostering robust international collaborations and enhancing access to financial aid are crucial steps to bridge existing gaps and ensure that Indian students and institutions can thrive on a global stage. By prioritizing education funding and accessibility, the government has the potential to create a transformative ecosystem that aligns with India’s aspirations of becoming a knowledge economy and a preferred destination for international academic partnerships.

- Aritra Ghosal, Founder & Director, OneStep Global

Looking ahead to the Union Budget 2025-26, I am hopeful that we will continue to see a concerted focus on embedding career guidance within the fabric of India’s education system to achieve our vision of Viksit Bharat 2047. This should include equipping educators with the tools to guide students in making informed career decisions, thus enhancing their academic performance and mental well-being. By integrating career guidance into the educational experience, we can ensure that students receive a stress-free environment that prioritizes their holistic development, preparing them to navigate their futures successfully, and contributing to the development of a skilled, confident, and future-ready workforce for the country.

- Ganesh Kohli, Founder of IC3 Movement

Initiatives to upskill faculty, revamp curriculums, and bolster infrastructure will be crucial to shaping globally competitive graduates. It’s time to prioritize innovation in pedagogy and policies that make India a global knowledge hub.

- Vaidyanathan V, CFO at Great Lakes Institute of Management, Chennai

Funding to bridge the urban-rural divide and easing regulations for private institutions are vital for promoting innovation and academic excellence.

- Prof. Swapnil Sahoo, Assistant Professor-Strategy and Entrepreneurship, Great Lakes Institute of Management, Gurgaon

Union Finance Minister Nirmala Sitharaman will present Budget 2025-26 today, February 1.

The government should allocate a significant budget for improving infrastructure and learning practices to close the current gaps in the educational sector. The government's measures need to encourage students to enroll in higher education by lowering loan interest rates and allowing them longer due dates to relieve financial stress from students and families. Also, there is a need to add AI as a necessary learning model or subject in every college since industry has shifted dramatically in the last few years making AI a necessity in mostly all sectors. This will help India to become a global knowledge hub in a few years. At last, the budget allocation must be more aligned towards student loans and funding the fee for students for their skill development. The grants for National Education Policy (NEP) must focus on the implementation of multidisciplinary institutions with flexibility. Also, the government must allocate some more funds to research and development (R&D), encouraging partnerships between businesses and universities. To provide creative solutions to the education sector, public-private partnerships (PPPs) ought to be promoted. Working together with commercial organizations can make it easier to share technology, resources, and knowledge, improving the nation's overall educational quality.

- Dr Devesh Kumar Singh, Chairman of Noida International University

The educational industry should prioritize international relationships with worldwide universities for a variety of programs. More scholarship measures, including decreased interest rates on school loans and STEM course subsidies, must be implemented. Skill development projects might focus on globally recognized vocational qualifications, and the government can provide assistance to returnees in finding jobs. Streamlined visa and application support could be implemented through government-backed platforms, streamlining processes and facilitating post-study employment options.

Investments in digital learning platforms and research funding could help Indian students gain access to worldwide courses while also encouraging innovation. Regional education hubs with top-tier infrastructure may entice international students and faculty. Centralized databases for tracking educational trends, as well as specialized grievance channels for Indian students studying abroad, could be developed. These policies seek to increase access, affordability, and opportunities for Indian students while presenting India as a global education leader.

- Jyotee Naair, Founder of CareerVversity

A significant increase in education funding is essential to bridge infrastructure gaps and promote skill development. More scholarships, streamlined remittance procedures, and lower GST on education loans will help families and give more students access to international study-abroad opportunities. The rising costs of international education demand proactive measures. Introducing tax benefits on education loans and subsidizing overseas education counseling services could be transformative. These steps would not only make studying abroad more accessible but also strengthen India’s soft power by fostering a globally competitive workforce. Digital transformation is another priority. Expanding digital infrastructure and subsidizing edtech platforms can ensure affordable and inclusive hybrid learning models, which are vital to preparing students for a globalized world. Studying abroad has immense potential to contribute to India’s socio-economic growth.

- Ritika Gupta, CEO, Aaera Consultants

The NEP 2020 aims for a 100 per cent Gross Enrolment Ratio (GER) by 2030. The government has been striving to achieve the objectives of NEP 2020 through a range of programmes and schemes, including the Samagra Shiksha Abhiyan (along with its sub-schemes such as NISHTHA, Vidya Pravesh, District Institutes of Education and Training (DIETs), Kasturba Gandhi Balika Vidyalaya (KGBV), etc.), DIKSHA17, STARS18, PARAKH19, PM SHRI20, ULLAS21, and PM POSHAN22, among others, according to the Economic Survey 2023-24.

The Union Budget 2025 can transform higher education by prioritizing Public-Private Partnerships, digital learning, and skill-based education. Investments in AI, robotics, micro-credentialing, and industry-academia collaboration are vital for preparing students for future industries. Additionally, a STEAM-focused curriculum and teacher training will equip students with critical 21st-century skills. Enhanced funding for research and global collaborations will position India as a leader in innovation and world-class education.

- Neelima Kamrah, Principal of KIIT World School, Gurugram

Percentage of schools with basic facilities out of total according to the Economic Survey 2024-25.

The previous budget had put adequate focus on enhancing higher education and skill development in India. The Skill India for instance was reported to have already trained more than 1.4 crore youth while upskilling and reskilling over 54 lakh others. The budget also mentioned about setting up new higher educational institutions, including IITs, IIITs, IIMs, AIIMS etc. We expect the coming budget to lay further emphasis on upgrading skill education across existing universities and institutions. A dedicated budget allocation to facilitate increased industry-academia partnership is the need of the hour. While it will encourage more institutions to integrate action & experiential learning in their education delivery model, it will enable the creation of valuable industry-ready workforce, which would be well acquainted with the requirements and challenges of respective industries by the time the curriculum is completed.Education is a fundamental pillar of nation building and thus, we expect the Union Budget to announce the highest ever allocation for the education sector, especially in the wake of India’s young population.

- Prof Supriya Pattanayak, Vice Chancellor, Centurion University, Odisha

The EdTech segment has been a crucial enabler in bridging the skill gap and enabling employment creation, as reflected in initiatives contained in the budget for last year. The push toward digital infrastructure development along with the introduction of technology in education was a foundational driver. For the 2025 budget, we have optimism that more reforms for GST will be in place and possibly reduce the steep 18% slab on online education services, making quality education achievable for all. Increased skilling program allocation under the Digital India initiative and incentives for EdTech companies driving innovation will be critical. Policies promoting collaboration between EdTech players and traditional educational institutions can also help scale the impact of digital education in India. A focused investment in last-mile connectivity and affordability this year will determine how effectively technology transforms learning outcomes across the nation.

- Beas Dev Ralhan, CEO, Next Education, SaaS-based EdTech company in India serving more than 18000 schools and 12 million students

We hope the upcoming budget prioritises strategic measures such as GST rationalisation for EdTech services and increased funding for skilling programs under the Digital India initiative. These initiatives will enhance the accessibility of online education, empowering young learners with essential life skills to thrive in a globalised, skills-driven world. Furthermore, we anticipate tax incentives and policy support to foster innovation in the EdTech sector, ensuring that platforms like ours can play a pivotal role in shaping India’s future-ready workforce.

- Kunal Malik, co-founder of PlanetSpark, a K12 skilling EdTech company dedicated to transforming communication skills for young learners

The Union Budget should address the challenges of educational loans to make education more accessible and affordable for students, especially those from weaker economic backgrounds. Despite the considerable allocation to the education sector, more investment should be considered to meet workforce requirements as per global standards. This also includes funding for STEM (Science, Technology, Engineering, and Mathematics) research, digital learning, and industry-focused skills like AI and IoT. Public-Private Partnerships (PPP) and subsidies for international students can further improve India's educational ecosystem, with the aim of making it a global education hub in the coming years.

- Kuldip Sarma, pro-chancellor and co-founder, Medhavi Skills University

India’s education landscape stands at a critical juncture. The Budget 2025 should not only bridge existing funding gaps but also propel us into the future by integrating next-generation technologies like AI, IoT, and robotics into mainstream curricula. By substantially increasing public spending on education and fostering robust industry-academia partnerships, we can build a globally competitive, job-ready workforce—one that will drive inclusive growth and bolster India’s standing as a leading knowledge economy.

- Pravesh Dudani, Founder and Chancellor, Medhavi Skills University

“As India aspires to establish itself as a global leader in education, sports, and innovation, the forthcoming Union Budget represents a pivotal opportunity to accelerate transformative progress across these critical sectors. Foremost, a significant allocation toward the development of world-class sporting infrastructure at universities is essential. This strategic investment will not only enhance India's preparedness to host the Youth Olympics 2030 and the Olympics 2036 but also foster a culture of fitness and athletic excellence among the nation's youth. By enabling students to pursue sports alongside academics, such initiatives align seamlessly with the vision of a healthier, more competitive India.

Furthermore, augmented funding through the Department of Science and Technology (DST) is indispensable for establishing Centers of Excellence in advanced domains such as Artificial Intelligence, Aerospace, and Innovation. These centres will serve as catalysts for groundbreaking research, stimulate an ecosystem conducive to start-up growth, and cement India’s leadership in technological innovation on the global stage.

Equally vital is the introduction of incentives for existing universities and educational institutions to create Distinguished Skill Universities. These institutions will address the critical skill gap by equipping the next generation with industry-relevant expertise, thereby driving employment opportunities and enhancing India's competitiveness in the international arena. A visionary budget that prioritizes these initiatives will serve as a cornerstone for India’s emergence as an economic and educational superpower in the 21st century."

- Abhay G Chebbi, Pro-Chancellor, Alliance University

A major concern for schools is the 18% GST on affiliation and accreditation services, which adds financial strain and limits resources for core functions. A review of this policy will help alleviate costs for schools. Besides, dedicated funds for skill-based learning and micro-credential courses are needed to materialize Education 4.0 by leveraging technologies like AI and robotics. Strengthening public-private partnerships (PPP) to create robust digital infrastructure and bridge the skills gap in school education should also be considered. The Centre’s focus on higher education, which now accounts for 40% of the education budget, must be complemented with increased investments in school education. Spending on research and innovation has surged, with IITs receiving 21.7% of higher education allocations in FY25. Similar attention to schools is necessary to ensure equitable progress across all educational levels.

- Vishal Goel, co-founder, Crimson Schools

According to the Economic Survey presented today, the school dropout rates have steadily declined in recent years, standing at 1.9 per cent for primary, 5.2 per cent for upper primary, and 14.1 per cent for secondary levels.

However, challenges persist, with retention rates at 85.4 per cent for primary (class 1 to 5), 78 per cent for elementary (classes 1 to 8), 63.8 per cent for secondary (classes 1 to 10), and 45.6 per cent for higher secondary (classes 1 to 12).

Improvements in basic facilities and infrastructure, including medical check-ups, sanitation, and information and communication technologies (ICT) availability, have been notable, reflecting a positive trend in school infrastructure development.

The NEP 2020 aims for a 100 per cent Gross Enrolment Ratio (GER) by 2030. The GER is near-universal at the primary (93 per cent) and the efforts are underway to bridge the gaps at the secondary (77.4 per cent) and higher secondary level (56.2 per cent), driving the nation closer to its vision of inclusive and equitable education for all, the Economic Survey stated.

A day before the Budget 2025, the Union finance minister tabled the Economic Survey 2024-25 in the Parliament, which stated that India’s school education system serves 24.8 crore students across 14.72 lakh schools with 98 lakh teachers (UDISE+ 2023-24). Government schools make up 69 per cent of the total, enrolling 50 per cent of students and employing 51 per cent of teachers, while private schools account for 22.5 per cent, enrolling 32.6 per cent of students and employing 38 per cent of teachers.

Union Finance Minister Nirmala Sitharaman will present Budget 2025-26 on February 1, 2025.