Union Budget 2025: Focus on AI to be a big booster for education and skill development

The AI Centres of Excellence are touted as a crucial step towards modernising education

Union Budget People watch the presentation of Union Budget 2025-26 on television screens at a showroom, in Gurugram, Saturday, Feb. 1, 2025 | PTI

The Union Budget 2025 has strongly focused on AI in education and other related fields and announcement around AI has touched upon pivotal aspects to push the next wave of growth in India. The announcement of the Centre of Excellence for AI in education, to be established with an outlay of Rs 500 crore. Many have welcomed this move and have said that the Union Budget’s emphasis on expanding digital access and fostering scientific through AI will help nurture innovation, critical thinking, and problem-solving skills in students. Overall focus on AI is expected to help different sectors in the country.

“The move to have Deeptech Fund of Funds and establish five new IITs after 2015, is another significant move, directed at boosting innovation in the space of AI and technology. We commend the budget for its forward-looking measures and look forward to contributing towards India’s emergence as a global leader in the space of AI, Tech, and innovation,” remarked Sarvagya Mishra, Founder and Director at Superbot.

It is also expected that with regard to the earlier Centers of Excellence, along with Krishi Dhan Dhanya program will bring the best of AI practices to the agriculture-tech startups ecosystem and breed further innovation. “Such a move requires large patient capital, but aligns us with the renaissance and renewed interest in nuclear energy that is happening all over the world, led by the US. Definitely opens the sector to private investors. Push for data centres consuming huge powers will need nuclear power which will further fuel our AI aspirations,” said Mayuresh Raut, Managing Partner, Seafund.

Various stakeholders have said that the AI Centres of Excellence is a crucial step towards modernising education. These initiatives will help nurture innovation, critical thinking, and problem-solving skills, ensuring that students are better prepared for a rapidly evolving digital-first world. “Strengthening medical education and AI-skill development through the National Centres of Excellence is also a welcome step in building a more capable and future-ready workforce. However, while these advancements lay a strong foundation, we had hoped for a more structured approach to teacher training, ensuring that educators are equipped to effectively implement these programs. Additionally, fostering grassroots transformation through targeted support for educational startups could further enhance accessibility and inclusivity. A well-rounded approach that bridges technology, teacher empowerment, and strong infrastructure will be key to shaping the next generation of innovators and problem solvers,” pointed out Nischal Narayanam, Founder and Mentor, nischals.

The Union Budget 2025 makes important moves to strengthen India's education and skilling system. The establishment of a Center of Excellence in AI for education, the expansion of Atal Tinkering Labs, and the creation of five National Centers of Excellence for Skilling under the 'Make for India, Make for the World' initiative all show a strong commitment to innovation and practical skills.

“While using AI in education has great potential, its benefits will be best realized when combined with good mentorship, hands-on learning, and real-world experience. This budget sets a solid foundation, but its success depends on effective implementation. Moving forward, sustained collaboration among academia, industry, and policymakers will be key to creating a dynamic, future-ready workforce,” pointed out Varun Satia, Founder and CEO, Kraftshala.

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