Today, India’s education ecosystem is clearly at a turning point. Over the last year, the government allocated close to Rs 1.28 lakh crore to education, and with the Gross Enrolment Ratio touching 28.4 per cent, access has steadily improved.
Broadly, there are expectations such as proper implementation of the NEP 2020, prioritising digital access to students, stress on faculty and institutional capacity-building, improving industry-academia collaboration, and initiatives towards developing future-ready skills in the age of AI. Many stakeholders in the education sector also feel that steps should be taken to further enhance the quality of education in the country.
“A young country like India cannot afford a mismatch between degrees and employable skills. Ahead of Budget 2026, the sector needs a deeper investment in higher education infrastructure, research ecosystems, faculty development, and industry-linked skilling programmes. Strengthening universities, upgrading labs, and embedding emerging technologies into curricula will determine whether our demographic dividend truly delivers. We expect the reforms to move beyond capacity building and focus on outcome-driven learning, where students graduate with future-ready skills and global competitiveness,” remarked Neeraj Kansal, CEO and Founder, Crack Academy.
India’s education sector is now at an important juncture, with nearly 50 per cent of the country’s 1.4 billion population under the age of 25. This demographic dividend calls for sustained and strategic investment in the sector. The target of increasing the Gross Enrolment Ratio from 28.4 per cent to 50 per cent by 2035 reflects a commitment to expanding access.
“Continued progress will depend on faster implementation of NEP 2020, supported by teacher training, institutional capacity building, and outcome-driven reforms. It will also require universal digital infrastructure to bridge the urban-rural divide, deeper collaboration between industry and academia, and sustained investment in skills development and research. Together, these measures can strengthen India’s human capital and support the transition towards a knowledge-driven economy, contributing to the goal of Atmanirbhar Bharat,” said Arti Dawar, CEO, Shiv Nadar School.
Many stakeholders in the field feel that India’s education budget should recognise learning as economic infrastructure. “The focus must shift to preparing students for evolving jobs through flexible curricula, industry-linked programs, and regional skill ecosystems. Funding choices should reflect India’s scale and diversity, ensuring quality education reaches beyond metros without widening inequality,” said Debashis Sanyal, Director, Great Lakes Institute of Management, Chennai.
However, there is a concern that while the India Skills Report 2026 shows graduate employability has risen to 56.35 per cent, the gap between academia and industry remains stark. With Rs 500 crore already allocated for AI Centres of Excellence, Budget 2026 must now incentivise ‘Last-Mile Skilling’. We need a tax holiday for EdTech firms that specifically bridge the deficit in the 16 per cent of our workforce entering the gig economy, ensuring degrees translate into dignity.
However, the most important expectation that the budget should have is to try to solve India’s employment challenge by focusing on many skill-based courses. “With nearly 70 per cent of skills expected to change by 2030, driven by rapid advances in AI and automation, the gap between industry demand and workforce preparedness has become structural. This gap is most visible in applied digital skills, problem-solving, critical thinking and the ability to work effectively alongside AI systems. Equally important is moving skills and technology integration from intent to execution. Bridging the industry-academia gap must become non-negotiable, with employer-led training programmes, mandatory industry immersion, faculty development in emerging technologies and industry-validated certifications that reflect real market needs. Skills development policy must transition from volume-based training to outcome-based capability building, supported by apprenticeships and modular learning models that allow professionals to upskill without exiting the workforce,” said Aditya Narayan Mishra, the MD and CEO of CIEL HR.
