Union Budget 2026 Expectations | Education sector calls for skill and infrastructure development

While presenting the Union Budget in 2025, Nirmala Sitharaman announced Rs 1.28 lakh crore for education, a 6.22 per cent increase from 2024.

However, the figure was not up to the 6 per cent of GDP recommended by the New Education Policy 2020.

Of the Rs 1.28 lakh crore, Rs 50,077.95 crore was allocated to higher education. Additionally, Rs 500 crore was set aside for an AI Centre of Excellence for education.

Further, ambitious projects including broadband connectivity for schools, the expansion of five third-generation IITs, and increased funding for Indian knowledge systems were also announced. It also placed a special focus on internship programmes for the youth.

Skilling is the need of the hour

As we approach another budget, the education sector demands fresh focus on skilling.

“The upcoming Union Budget must place skilling firmly at the centre of India’s growth agenda. In an AI-led era, one of the most pressing challenges industries continue to face is the shortage of talent equipped with future-ready, applied skills," said Abhimanyu Saxena, Co-Founder of Scaler.

"Ongoing shifts in workforce requirements have underscored the importance of continuous upskilling, making employability today less about static roles and more about sustained relevance. Addressing this skills gap is not just an industry concern but a strategic national imperative," he added.

There are also calls to instill future-ready skills in children from a young age.

"There is a timely opportunity to strengthen STEM education and skill-oriented, application-based learning from an early stage, helping students develop and strengthen future-ready skills," said Shweta Sastri, Managing Director, Canadian International School, Bangalore.

At a time when the corporate world faces mass layoffs and hiring freeze, it is imperative that the educators are also well equipped and updated with the demadns of the job market.

"Empowering educators through continuous professional development and digital upskilling must be a priority, as teachers are the cornerstone of any high-performing education system," Sastri said

Infrastructure development

The number of government schools across the country has declined over the last six years.

Further, the UDISE+ 2023-24 data released by the Ministry of Education shows a dip in government school enrolment by 88 lakh in 2023-24 compared to the previous year.

On the positive side, however, Gross Enrolment Ratio for higher education increased from 23.7 per cent to 28.4 per cent.

With the number students increasing for higher education, institutions require adequate infrastructure to support the growing needs.

“We look forward to seeing a meaningful increase in this year’s budget to strengthen skilling, accelerate digital transformation, and invest in infrastructure to improve learning outcomes, particularly in underdeveloped and rural regions," Ravin Nair, Managing Director, QS I-GAUGE said.

Adding to the view Sastri said there also needs to be an improvement in the teaching quality apart from infrastructure.

"As the Union Budget approaches, we look ahead with optimism that education will continue to receive focused, future-oriented attention. Nurturing well-rounded learners requires strengthening teaching quality, infrastructure, and innovation, with holistic development remaining central," Sastri said.

"Sustained investment in teacher training, modern learning spaces, and technology-enabled classrooms is essential to fostering inclusion, curiosity, and critical thinking," she added.