Union Budget 2026 backs PMRC scheme: What it means for India’s higher education, research ecosystem

With a dedicated budgetary allocation in the Union Budget 2026, the proposed Prime Minister Research Chair (PMRC) scheme is being seen within government and academic circles as a potential inflection point for India’s higher education and research ecosystem, long constrained by talent outmigration and uneven research capacity.

The PMRC proposal envisages engaging 120 Indian-origin researchers and scientists over five years across three tiers—Young Research Fellows, Senior Research Fellows, and Research Chairs.

What distinguishes the scheme from earlier fellowship initiatives is not just its scale, but the fact that it now comes with assured funding of Rs 200 crore, signalling policy certainty and long-term intent.

Moving from intent to institutional capacity

For years, India’s higher education sector has struggled with weak research depth at universities. By directly funding senior research chairs and well-supported fellows, the PMRC scheme aims to strengthen institutional research capacity from within, rather than relying solely on incremental faculty hiring.

The focus on 14 nationally significant sectors—including semiconductors, artificial intelligence, clean energy, and advanced materials—also aligns higher education with national priorities.

This is expected to push universities and IITs beyond teaching-centric models toward mission-oriented research, where faculty, doctoral students and postdoctoral researchers work within structured, long-term projects.

Minister of Education Dharmendra Pradhan said:

“Under Semiconductor Mission 2.0, Rs 40,000 crore has been allocated for infrastructure. This initiative is closely linked to our universities and campuses and will play a critical role in creating high-quality jobs and positioning India as a global technology hub.”

Making academia competitive again

A major constraint in India’s education sector has been its limited ability to attract and retain top researchers, particularly from the diaspora.

While many Indian-origin scientists occupy senior positions in universities abroad, returning to India often entails sharp pay cuts, administrative hurdles and uncertain funding. By providing assured financial support through the Budget, the PMRC Scheme attempts to directly address these deterrents.

Such models, education policymakers believe, can make Indian institutions more globally competitive without requiring immediate, across-the-board structural overhauls.

In practical terms, even a limited number of globally trained researchers embedded within Indian campuses can raise teaching standards, modernise curricula, and expose students to frontier research methodologies.

On increase in budget allocation for education sector

“In our journey towards a developed India, this year’s Union Budget clearly reflects the Prime Minister’s long-term vision and the strong financial planning led by Finance Minister Nirmala Sitharaman. The education budget has been increased from Rs 1,28,650 crore last year to Rs 1,39,289 crore this year, an increase of 8.27 per cent which underlines the government’s unwavering priority towards education,” noted Pradhan.

“Education today stands among the top six priority sectors in the Union Budget. This is a clear recognition of the fact that human capital is the most critical driver of India’s future growth and global competitiveness," he added.

Pravesh Dudani, founder and chancellor, Medhavi Skills University said:

“This Budget moves the focus from building campuses to building outcomes. By embedding skills, healthcare training, and NSQF-aligned pathways into higher education, it strengthens livelihoods, not just degrees.”

On STEM education for girls

“I am proud to state that girls in India are today among the best performers in STEM education globally. To further strengthen this progress, the government, in partnership with state governments, has decided to build modern girls' hostels in every district of the country, ensuring access, safety and continuity of education," Pradhan pointed out.

Shishir Jaipuria, Chairman, Jaipuria Group of educational institutions said:

"Budget 2026 marks a shift from education as an end to education as an enabler of employment. University towns, STEM focus, and stronger industry alignment clearly link learning with enterprise and jobs.”