The Union Budget for 2025-26, presented by Finance Minister Nirmala Sitharaman, focuses on education, skill development, and research to help India's youth prepare for future jobs.
The budget includes important investments in AI, digital literacy, and higher education infrastructure to improve India's competitiveness on the global stage.
AI and Digital Expansion
Rahul Subramaniam, Co-founder of Athena Education, praised the Rs 500 crore set aside for Centres of Excellence in Artificial Intelligence. He called it a "forward-thinking plan for education."
He also highlighted that the budget's focus on making education more accessible, developing skills, and using technology shows a strong commitment to preparing students for the future. Expanding IITs and medical colleges will improve both the quality and capacity of education, making it a key factor in India's growth.
"The 2025 Union Budget provides a clear plan for the education sector, focusing on making education more accessible, improving skills, and integrating technology. The Rs 500 crore for AI Centres of Excellence shows a commitment to giving students the skills they need for the future. Expanding IITs and medical colleges will improve both the quality and the reach of education, helping drive national progress," he said.
Building a skilled workforce for global jobs
The budget also plans to create five National Centres of Excellence for Skilling and expand IITs by 6,500 seats to close skill gaps and improve vocational training. Additionally, 10,000 scholarships under the PM Research Fellowship will help create a workforce skilled in technology, ready for global job markets.
Rs 500 crore for AI in education
The Rs 500 crore allocated for AI in education is India's first major step to bring generative AI into the education system. These efforts will make educational institutions hubs for research and development, rather than just degree-awarding bodies.
Ramani Dathi, Director of TeamLease HCM, said the budget focuses on bridging the gap between technology and workforce readiness through programmes like the National Digital Skill Development Mission and AI-powered education platforms.
"The government has set a clear focus on creating a skilled workforce ready for an AI-driven economy and the future of work. Through initiatives like the National Digital Skill Development Mission, AI education platforms, automation skill training, and private sector partnerships, the government aims to close the gap between technological progress and workforce readiness," he said.
Supporting global student mobility
Saurabh Arora, Founder & CEO of University Living, called the budget a game-changer for India’s students, especially with the changes to the Tax Collected at Source (TCS) under the Liberalised Remittance Scheme (LRS).
"The Union Budget 2025-26 is a transformative step for India’s student community, making it easier for them to study abroad. The changes to the TCS system will ease the financial burden on families. With over 1.3 million Indian students sending more than US$60 billion abroad, raising the TCS threshold from Rs 7 lakh to Rs 10 lakh is a recognition of the financial challenges families face. Removing the TCS on remittances funded by education loans will make world-class education more accessible," he said.
Piyush Kumar, Regional Director at IDP Education, also praised the removal of TCS on education-related remittances funded by loans, calling it a big step toward breaking down financial barriers for students wanting to study abroad.
"Removing TCS on education-related remittances funded by loans is a welcome move, making it easier for students to pursue education abroad. This will help India’s youth access the best opportunities both within the country and globally," he said.
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