Union Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025 on February 1, with the education sector expecting substantial policy support and funding increases. Key priorities include higher budget allocations for school and higher education, a stronger emphasis on digital learning, skill development, and infrastructural improvements.
Increased Budget Allocation for Education
India currently spends about 4.5% of its GDP on education, while developed countries allocate between 6-14%. Experts argue that bridging this gap is essential for educational growth. Dr. Jones, Principal of the Great Lakes Institute of Management, highlights that UGC funding was reduced by 61% in the 2024-25 budget, signaling the need for a more substantial investment in higher education.
Ajitesh Basani, Executive Director at Acharya Bangalore B-School, advocates for a 20-25% increase in higher education and research funding. A dedicated ₹10,000 crore for emerging technology skill development is also expected.
Focus on Digital Learning and AI Integration
The National Education Policy (NEP) 2020 emphasizes digital learning, foundational literacy, and numeracy. According to Anish Shah, CFO of Zee Learn Limited, the integration of AI in education will personalize learning experiences and improve teaching methodologies. The government is expected to allocate more funds for digital infrastructure, making technology-driven education accessible nationwide.
Early Childhood Education Investments
Raj Singhal, CEO of Footprints Childcare, stresses the importance of increased funding for preschool infrastructure, particularly in underserved areas. Subsidies, tax benefits, and affordability measures for families are recommended to ease financial burdens. Additionally, integrating early childhood education with the Skill India Mission could enhance educator training and improve pedagogical approaches.
Strengthening Industry-Academia Collaboration
Veerasundar V., CFO of Simplilearn, suggests that industry-academia partnerships should align courses with market needs, focusing on hybrid learning and skill programs in AI and IoT. Strengthening mid-career upskilling programs and fostering global certifications will help prepare India’s workforce for a technology-driven economy.
Affordable Education Loans and Financial Support
With rising education costs, Vinesh Menon, CEO of ARISE, calls for reforms in education loans, including lowering interest rates to below 6%. He also advocates for extending tax benefits on interest payments and implementing scholarship programs to support students from economically weaker backgrounds.
Vocational and Skill-Based Learning
Jai Decosta, CEO of K12 Techno Services, emphasizes the importance of vocational training and application-based learning in K-12 education. Increased funding for digital learning and IT infrastructure integration will further boost employability-focused skills.
Boosting Research and Development
Anand Jacob Verghese, Chairman of Hindustan Group of Institutions, expects policies that enhance India’s global education standing. Establishing special economic zones for education, fostering industry-academia collaboration, and supporting research initiatives will help create a globally competitive workforce.
Support for Ed-Tech Growth
Diwakar Chittora, CEO of Intellipaat, highlights the need for GST reductions and tax incentives for ed-tech companies. With digital education playing a key role in upskilling India’s workforce, policy reforms can enhance accessibility, especially in rural and underserved regions.
Conclusion
The 2025 budget presents an opportunity to strengthen India’s education sector by prioritizing increased funding, digital transformation, and skill development. Addressing affordability, technological integration, and research growth will ensure a future-ready workforce, aligning with India’s long-term economic vision.
