Union Budget 2025-26: Transforming School Education in India

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Nirmala Sitharaman, India's Finance minister, during a news conference in New Delhi, India, on Tuesday, Feb. 1, 2022. The Reserve Bank of India will launch its digital currency in the year starting April 1, Finance Minister Nirmala Sitharaman said in her budget speech on Tuesday. Photographer: T. Narayan/Bloomberg via Getty Images

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, aims to reshape India’s education system with a strong emphasis on technology, skill development, and accessibility. With 50,000 Atal Tinkering Labs, broadband access for government schools, and a ₹500 crore Centre of Excellence in AI for Education, the budget focuses on digital transformation and inclusive learning.

Key Highlights for School Education

  • 50,000 Atal Tinkering Labs will be established in government schools over five years, fostering hands-on STEM learning and innovation.
  • High-speed internet connectivity for all government secondary and primary schools under the Bharat Net project to bridge the digital divide.
  • ₹500 crore allocation for AI Centres of Excellence, enhancing AI-driven learning and research in education.
  • Expansion of IIT infrastructure, creating 6,500 additional seats and boosting research opportunities.
  • 75,000 new medical seats over the next five years, addressing the need for skilled healthcare professionals.
  • Strengthening teacher training programs under the Pandit Madan Mohan Malviya National Mission on Teachers and Teaching.
  • Reduction in education loan interest rates and removal of TCS on education loan remittances up to ₹10 lakh, making higher education more affordable.

Digital Inclusion and AI-Driven Learning

The government’s focus on AI integration in education is expected to enhance learning experiences and technological fluency among students. With a dedicated ₹500 crore Centre of Excellence in AI, schools and universities will gain access to AI-driven tools and research opportunities. Experts believe this move will position India as a global leader in AI education.

Skilling India’s Workforce for the Future

The budget introduces five National Centres of Excellence for Skilling, designed to align education with industry needs. These centres, in collaboration with global institutions, will equip students with industry-relevant skills, preparing them for the evolving job market.

Strengthening Higher Education and Research

The PM Research Fellowship, offering 10,000 fellowships for research at IITs and IISc, aims to boost India’s knowledge economy. Additionally, the expansion of IITs and increased investment in research will drive innovation and technological advancements.

A Vision for Inclusive and Global Education

The removal of TCS on education loan remittances will ease financial constraints for students aspiring to study abroad. Additionally, the Bharatiya Bhasha Pustak Scheme, which promotes Indian language books in digital format, ensures access to diverse learning resources.

Conclusion

The Union Budget 2025-26 presents a holistic vision for education, prioritizing technology, skill development, and inclusivity. With major investments in STEM education, AI research, and digital infrastructure, the budget lays the groundwork for a future-ready education system. However, its success will depend on effective implementation and collaboration between policymakers, educators, and industry leaders.

With these initiatives, India moves closer to becoming a global knowledge hub, ensuring that its students and professionals are equipped for the challenges of the future.

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