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The recent Union Budget for 2025-26 brings in some major changes to India's education system through a boost in funding and innovative initiatives. With a total allocation of INR 128,650 crore, the government is showing a clear focus on enhancing infrastructure, digitalization, skill development, research, and linguistic diversity to establish a competitive education landscape on a global scale.
The Ministry of Education has received a total budget of INR 128, 650 crore, which is clearly 6.22% higher than the previous year. The Department of School Education and Literacy has been allocated a record high of INR 78,572 crore, while The Department of Higher Education received INR 50, 077.95 crore, with a 5.16% rise in allocation.
In an advent to improve school education further, the government has announced the establishment of 50,000 Atal Tinkering Labs over the next five years. Broadband connectivity will be extended to all government secondary schools under the BharatNet initiative within three years. And, the Bharatiya Bhasha Pustak Scheme will offer digital Indian language books for schools and higher education.
In terms of strengthening higher education and research IITs established post–2014 will benefit from additional infrastructure to accommodate more than 6,500 students. 10,000 fellowships for technological research in IITs and IISc will be provided under the PM Research Fellowship Scheme. A fund of INR 20,000 crore is set aside for research, development, and innovation driven by the private sector. Above all these, there’s also a dedicated fund of INR 500 crore for the establishment of the Centre of Excellence in Artificial Intelligence for Education to move ahead with India’s AI vision.
Applauding these intiatives Mohan Subrahmanya, Country Leader- India, Insight Enterprises said, "The Union Budget 2025 presents a bold vision for a future-ready workforce and a thriving digital economy, reinforcing India’s position as a global tech hub. The ₹500 crore Centre of Excellence in AI for education, along with 10,000 tech research fellowships at IITs and IISc, will drive innovation and talent development."
Skill development and Innovation were also another focus area in the union budget. Under this, the government has planned five National Centres of Excellence for Skilling which will prepare youths for the manufacturing sector, promoting the ‘Make for India, Make for the World’ vision. The National Digital Repository of Indian Knowledge Systems will also be launched for knowledge sharing. And, the Gyan Bharatam Mission will work towards conserving over 1 crore manuscripts.
These measures are aimed at boosting research, innovation, and technology integration in education to position India as a global leader in knowledge and skills. Students, teachers, researchers, entrepreneurs, startups, and rural communities are among the beneficiaries. Implementation will happen gradually over the next five years, with key initiatives commencing in 2025.
The Union budget 2025-26 is a landmark towards India's development goals by 2047, focusing on skills, research, and AI-driven education to pave the way for a knowledgeable future generation.
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