Education Budget 2025 LIVE: From more medical seats to increased infra for IITs, what FM proposed for education sector

'The Union Budget 2025-26 presents a forward-thinking vision for higher education, focusing on skill development, innovation, and inclusivity.

The substantial increase in the budget allocation for higher education, from ₹46,482.35 crore in 2024-25 to ₹50,077.95 crore in 2025-26, represents a significant 7.74% rise. This increased investment will enable us to enhance further the quality of education, support research and innovation, and expand access to higher learning opportunities for all.

The Bharatiya Bhasha Pustak scheme is a welcome initiative to ensure access to digital learning resources in Indian languages, promoting inclusivity and enriching the educational experience. A substantial increase in funding for the Indian Knowledge System, rising from ₹10 crore to ₹50 crore in the 2025-26 budget, will empower researchers and institutions to explore further, document, and disseminate India's invaluable intellectual contributions. This move will significantly boost UGC's efforts to prepare 22,000 textbooks for UG & PG studies in 22 Indian languages.

The Union Budget 2025-26 has allocated ₹16,146.11 crore to Central Universities, a welcome increase from ₹15,538.23 crore in the previous fiscal year. This additional funding will empower these institutions to enhance their infrastructure further, support research initiatives, and provide quality education to students nationwide. The budget for the Centrally Sponsored Schemes has also increased to ₹1815 Crore, which will strengthen the PM-USHA & RUSA, ultimately benefitting students. The substantial increase in Student Financial Aid to ₹2160 crore in the Union Budget 2025-26 is commendable. This significant boost of over 68% underscores the government's commitment to making higher education accessible to all, regardless of their financial background.

Establishing 5 National Centers of Excellence for Skilling, equipped with global expertise, is a significant step towards empowering our youth with industry-relevant skills and enhancing their employability. The creation of a Centre of Excellence for AI in education, with an outlay of ₹500 crore, underscores the government's recognition of AI's transformative potential and its importance in shaping the future of learning. Expanding and adding new infrastructure for 5 IITs and creating 5,000 additional seats will boost access to quality higher education for all. The budget for digitising the storage system for the academic credits through the Academic Bank of Credits has also increased to ₹16 Crore.

The PM Research Fellowship scheme, providing 10,000 scholarships over the next 5 years, will significantly boost technological research in premier institutions like IITs and IISc, promoting a culture of innovation and research excellence.

The expansion of 50,000 Atal Tinkering Labs demonstrates a commitment to promoting a scientific temper and nurturing the next generation of innovators from a young age.

These initiatives and continued support for research, innovation, and infrastructure development in higher education will undoubtedly contribute to building a robust and future-ready education ecosystem.

UGC is committed to working closely with all stakeholders to ensure these initiatives' effective implementation and realise the vision of the National Education Policy 2020. UGC, being one of the leading implementation agencies of the NEP 2020, is confident that together, we will build a future where education empowers innovation thrives. Our youth lead the way towards a brighter tomorrow. The budget reinforces the spirit of Viksit Bharat.'

Prof. M. Jagadesh Kumar, Chairman, University Grants Commission

The plan to set up CoE in AI for Education will support the development of Indian education sector. AI applications in areas like personalised learning, assessments, curriculum design, effective pedagogy approaches and faculty feedback and development will make analytics based support to policy making in these areas. - Kamlesh Vyas, Partner, Deloitte India

"It is a welcome move to see the focus on innovation via more Atal Tinkering labs and additional infrastructure for STEM learning especially for AI. We are at the dawn of the AI epoch and the only way for our country to become a developed nation is to stay in lockstep with the new technologies whether it is AI or quantum computing. This budget has made some important contributions towards that goal by encouraging innovation and increasing the outlay for capacity building in these vital areas."

Praneet Mungali - Educationist and Trustee, Sanskriti Group of Schools

The government proposed to remove Tax Collected at Source (TCS) on remittances for educational purposes where such remittances are out of loans taken from specified financial institutions.

PM Research Fellowship Scheme: We will provide 10,000 fellowships for technological research in IITs and the IISc with enhanced financial support, says FM

In the next one year, 10,000 additional seats will be added in Medical colleges and hospitals, with the goal of adding 75,000 seats in the next five years.

Expansion of capacities in IITs- Total number of students in 23 IITs have increased 100% in the past 10 years. Additional infrastrcture will be added in the 5 IIT's started after 2014 to facilitate education for 6500 more students. Hostel and other infrastructure facilities will be improved at IIT Patna.

5 National centers of excellence for skilling will be set up with global expertise and partnerships to equip the youth with skills required.

Broadband connectivity to be provided to all government secondary schools and primary healthcare centres, says Finance Minister

50,000 Atal Tinkering Labs will be set up in next 5 years to cultivate scientific temper in young minds

We will establish a National Institute of Food Technology, Entrepreneurship and Management in Bihar…this will result in enhanced income for farmers through value addition to their produce and skilling entrepreneurship and employment opportunities for the youth.

For us, VIkashit Bharat encompasses zero poverty, 100 per cent quality, good school education, access to high quality, affordable and comprehensive healthcare, 100 per cent skilled labour with meaningful employment, 70 per cent women in economic activities and farmers making a country the food basket of the world, said FM in her budget speech.

Comprehensive multi sectoral rural prosperity and resilience program to be launched in partnership with states to create ample opportunities in rural areas through skilling and development

Presenting the much-awaited Union Budget 2025 in Parliament on Saturday, Finance Minister Nirmala Sitharaman said that the focus of the Budget is to accelerate growth.

“As one of the leading players in early childhood education, we hope the upcoming budget places a strong emphasis on increased funding for preschool infrastructure and accessibility, particularly in underserved areas. Early childhood education is the foundation of a nation’s future workforce, and targeted investments in this sector can unlock immense potential for long-term economic growth."

"Given the rising costs of education and the impact of declining household spending, we urge the government to introduce measures such as subsidies, tax benefits, and initiatives to make quality education more affordable for families across socio-economic strata. Furthermore, integrating early childhood education into the Skill India Mission would be a game-changer. By aligning educator training and child development programs with skills development, the government can ensure that teachers are equipped with modern pedagogical tools, creating a ripple effect that benefits children during their most formative years. Such a move would not only elevate the preschool sector but also enable it to contribute significantly to India’s long-term skill development goals.”

- Raj Singhal, Co-founder & CEO of Footprints Childcare

"The Union Budget 2025-26 presents a critical opportunity to strengthen India's financial education landscape through strategic edu-fintech partnerships. We anticipate dedicated initiatives supporting digital financial literacy, including tax incentives for platforms delivering specialized financial education and skill development programs.

We expect policy makers to focus on industry-academia collaboration and professional development grants. These measures will be crucial in creating a financially literate workforce equipped with contemporary skills in fintech, banking, and investment management."

Pratham Barot, CEO and Co founder, Zell Education

"Last year’s budget was a mixed bag for higher education. Support for world-class institutions increased by about INR 400 crores, but education access was severely curtailed for the less privileged by the ending of scholarships and student aid programs. Allocation for interest subsidy on student loans was missing. Funding for scholarships for higher education students was also absent. A stagnation in total budgetary allocation fails to compensate for rising inflation. It also affects the expansion of suitable infrastructure.

India spends about 4.5% of the national GDP on education, while developed countries spend anywhere between 6-14%. There is a stark gap there. The UGC’s funding in the 2024-25 budget was reduced by a staggering 61% compared to the immediate previous year. Needless to say, a lot more can be done in the 2025-26 budget for higher education.

In the 2025-26 budget, it is expected that more emphasis will be placed on digital learning, skills development, technical and professional education, and teacher upskilling by greater fund allocations. On the lines of building world-class institutions, it is expected that there will be more thrust on internationalisation initiatives and support, as well as developing educator infrastructure. R&D is expected to continue to receive more attention in the new budget.

A nation that educates its citizens has a longer chance of global success."

-Dr. Jones, Principal and Head of the Institute of Management, Great Lakes Institute of Management, Gurgaon.

"We hope the Union Budget 2025 builds on earlier provisions, particularly the financial support for loans of up to ₹10 lakh for higher education in domestic institutions, making it more accessible to students. Additionally, we look forward to this budget advancing support for education, employment, and skills through supportive schemes.

Another key focus should be increasing access to quality education and technology, especially in rural and underserved areas. Investments in expanding connectivity, modernising classrooms and creating accessible online learning platforms are essential to bridging the digital divide and making education more accessible to all.

As the world evolves, the demand for skilled professionals across various sectors will grow. Meeting this need requires laying the groundwork at the school level. Strengthening industry-academia connections will better prepare students to navigate dynamic challenges, particularly in technology-disrupted environments. Easing GST on higher education institutes, coupled with tax benefits for students and professionals availing education loans for self, could provide significant relief to both institutions and students."

Anunaya Chaubey, Provost, Anant National University

Finance Minister Nirmala Sitharaman will present the much-awaited Union Budget 2025 in Parliament today. The education sector is hoping that Sitharaman will provide the much needed boost to this sector.