The Union Budget 2025-26 has given 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 Rs 46,482.35 crore in 2024-25 to Rs 50,077.95 crore in 2025-26, represents a significant 7.74 per cent rise. This increased investment will help give a further boost to the sector and support research and innovation. The announcement of 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. The Union Budget 2025-26 has allocated Rs 16,146.11 crore to central universities, a welcome increase from Rs 15,538.23 crore in the previous fiscal year.
“A substantial increase in funding for the Indian Knowledge System, rising from Rs 10 crore to Rs 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 and PG studies in 22 Indian languages. At the same time, the additional funding will empower these institutions to enhance their infrastructure, support research initiatives, and provide quality education to students nationwide.
The budget for the Centrally Sponsored Schemes has also increased to Rs 1,815 Crore, which will strengthen the PM-USHA and RUSA, ultimately benefitting students. The substantial increase in Student Financial Aid to Rs 2,160 crore in the Union Budget 2025-26 is commendable. This significant boost of over 68 per cent underscores the government's commitment to making higher education accessible to all, regardless of their financial background,” remarked M. Jagadesh Kumar, Chairman, the University Grants Commission.
Establishing five National Centers of Excellence for Skilling, equipped with global expertise, is being termed as 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 Rs 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 five 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 Rs 16 crore,” added Kumar.
The PM Research Fellowship scheme, providing 10,000 scholarships over the next five years, will significantly boost technological research in premier institutions like IITs and IISc and is also expected to promote a culture of innovation and research excellence. Plus the expansion of 50,000 Atal Tinkering Labs is also been keenly looked towards in promoting a scientific temper and nurturing the next generation of innovators from a young age.
“Budget 2025-26 is a crucial step towards advancing skill development and employability of Indian youth as it reiterated that Viksit Bharat encompasses 100 per cent skilled labour with meaningful employment. The proposal of establishing five National Centers of Excellence for Skilling with global expertise and partnerships is a transformative move to equip the youth with industry-relevant skills. The setting up of AI Centre of Excellence for education, coupled with the proposed DeepTech Fund of Funds, underscores the centre's commitment to staying at the forefront of the AI revolution and empowering entrepreneurs. We are particularly excited about the industry-academia collaboration opportunities the CoE initiatives will invite, paving the way for groundbreaking innovation and skill development. Aligning with the vision of making quality education financially inclusive, the proposal to remove Tax Collected at Source (TCS) on education loans up to Rs 10 lakhs will make higher education more accessible and affordable,” remarked Pravesh Dudani, Founder and Chancellor, Medhavi Skills University.
Stakeholders in the higher education field feel that the Budget 2025 reflects a progressive vision for strengthening India’s education, skilling, and research ecosystem and removing TCS on education loan remittances is a much-needed relief for students aspiring for global education.
“The government’s focus on expanding medical education with 10,000 additional seats this year and a target of 75,000 new seats in the next five years is a commendable step toward strengthening India’s healthcare sector. Investments in broadband connectivity for government schools, enhanced fellowships for technological research, and a strong push for skill development will significantly contribute to creating a future-ready workforce. We look forward to collaborative opportunities between public and private institutions to drive innovation, research, and skill-based learning that align with India’s long-term development goals,” observed B. Priestly Shan, Vice-Chancellor of Alliance University.
