Practical Learning in Focus
Dr. Prof Anand Achari, Principal of VES College of Architecture, highlights how the budget emphasizes hands-on learning to bridge the gap between academia and industry. Atal Tinkering Labs (ATL) and AI Centres of Excellence are set to revolutionize learning methodologies by making education more experiential. Dr. Maithili Tambe (CEO, The Academy School, Pune) echoes this sentiment, stating that the introduction of 50,000 Atal Tinkering Labs will significantly enhance STEM education.
- Dr. Prof Anand Achari, Principal, VES College of Architecture: The budget emphasis on hands-on learning bridges the gap between academia and industry, ensuring students acquire real-world skills.
Union Budget 2025: A Tech Leap for Education and Skill Development
Experts from diverse educational and industrial backgrounds have hailed the budget’s focus on AI integration, hands-on learning, expansion of medical and engineering seats, and accessibility enhancements. However, while many welcome these measures, there are calls for deeper investments in primary and secondary education, teacher training, and infrastructure development.
Allocation to Education has seen a marginal increase of 6.65% in the Union Budget 2025 presented to the Parliament on February 1, 2025 by Finance Minister Nirmala Sitharaman. The total allocation for education has increased from ₹1.20 lakh crore last year to ₹1.28 lakh crore this year.
- School Education: The allocation has increased by 16.28% from the revised estimates of 2024-25, going from ₹73,008 crore to ₹78,572 crore.
- Higher Education: The allocation has risen by 5% from ₹47,619 crore last year to ₹50,077 crore this year.
Key Budget Announcements
- AI in Education: Establishment of three Centres of Excellence in Artificial Intelligence (AI) with a total allocation of ₹500 crore.
- Atal Tinkering Labs Expansion: 50,000 additional labs in government schools to boost STEM education.
- Bharatiya Bhasha Pustak Scheme: Digital access to Indian language books to foster multilingual learning.
- Higher Education Expansion: Increase in IIT seats by 6,500 and medical education expansion with 10,000 new seats in 2025, targeting 75,000 over five years.
- Five National Centres of Excellence for Skilling: Focused on industry-relevant vocational training.
- Broadband Connectivity: Nationwide expansion in government secondary schools to bridge the digital divide.
- Tax Reforms: Adjustments in the personal income tax structure to stimulate economic growth and increase disposable income.
The highlights in the budget for education include a Centre of Excellence for AI in Education with an outlay of Rs 500 crore, plans to expand infrastructure in five Indian Institutes of Technology (IITs) and add 10,000 new medical college seats. The budget proposes setting up 50,000 Atal Tinkering Labs in government schools to promote innovation and scientific temperament. Centre of Excellence in Artificial Intelligence for education is expected to address disparities and inefficiencies in the education system, ensuring equitable and high-quality education across the nation.
AI and Digital Learning
AI integration in education is a recurring theme in the budget. Vinay Singh, CEO of Thomson Digital and Q&I, highlights AI’s potential to bridge learning gaps and enhance student engagement. Neeraj Kansal, Founder & CEO of Crack Academy, sees AI Centers benefiting rural schools, while Shantanu Prakash, Founder of The Millennium Group of Schools, emphasizes that the government’s ₹500 crore allocation for AI in education aligns well with the future of AI-driven learning.
Many experts, including Dr. Venkat Rangan (VC, Amrita Vishwa Vidyapeetham) and Prof. Indranil Manna (VC, BIT Mesra), stress the need for research and development in AI. The DeepTech Fund and PM Research Fellowships are expected to foster innovation, while broadband expansion in government schools will bridge the digital divide.
The government will provide broadband connectivity to all government secondary schools and primary health centers in rural areas. Additionally, the Bharatiya Bhasha Pustak Scheme will offer digital Indian language books for schools and higher education.
The Union Budget 2025 has allocated funds for the expansion of infrastructure in five newer Indian Institutes of Technology (IITs) established after 2014. These IITs include IIT Palakkad, IIT Dharwad, IIT Jammu, IIT Bhilai, and IIT Tirupati2. The goal is to accommodate 6,500 additional students over the next five years. This expansion aims to enhance the quality of education and support the growing number of students in these institutions.
The budget proposes adding 10,000 new medical seats in the coming year, with a long-term goal of increasing the number of seats by 75,000 over the next five years. This move aims to address the shortage of healthcare professionals in the country. The government plans to expand infrastructure in medical colleges and hospitals to accommodate the additional seats
There is also support for Medical Tourism: The ‘Heal in India’ initiative will streamline visa processes for international patients, aiming to strengthen India’s position as a global medical hub.
The budget for the skill development ministry has increased from ₹3,241 crore in the revised estimates of 2024-25 to ₹6,017 crore in 2025-26. The budget allocates ₹3,000 crore for upgrading Industrial Training Institutes (ITIs) to provide vocational training and create a skilled workforce. Also, five new National Centres of Excellence will be established with global expertise and partnerships to equip youth with industry-relevant skills. A new internship program has received a substantial increase in funding, with ₹10,831 crore allocated to support corporate training and skill development.
Rural Prosperity Program: A comprehensive multi-sectoral rural prosperity and resilience program will be launched to address under-employment in agriculture through skilling, investment, and technology.
Challenges and Areas for Improvement
Despite the ambitious initiatives, some concerns remain. Ravichandran V, Chairperson and Trustee at eVidyaloka, argues that while education funding has increased, it is still insufficient to meet the country’s growing needs. Nidheesh Saxena, Senior Education Professional, believes that more infrastructure investment and tax relief for education loans are required to ease financial burdens on students and parents.
Experts such as Atul Temurnikar (Chairman & Co-Founder, Global Schools Foundation) and Niru Agarwal (Managing Trustee, Greenwood High International School) emphasize the importance of child nutrition, digital textbooks, and public-private partnerships to ensure holistic learning outcomes.
Practical Learning in Focus
Dr. Prof Anand Achari, Principal of VES College of Architecture, highlights how the budget emphasizes hands-on learning to bridge the gap between academia and industry. Atal Tinkering Labs (ATL) and AI Centres of Excellence are set to revolutionize learning methodologies by making education more experiential. Dr. Maithili Tambe (CEO, The Academy School, Pune) echoes this sentiment, stating that the introduction of 50,000 Atal Tinkering Labs will significantly enhance STEM education.
Skilling Initiatives and GCC Expansion
Anshuman Das, CEO of Careernet, points out that the promotion of Global Capability Centers (GCCs) in Tier-2 cities will create employment opportunities, reducing the urban-rural talent divide. The Electronics Sector Skills Council of India (ESSCI) supports this move, stating that strengthening India’s domestic electronics manufacturing ecosystem will not only create jobs but also foster innovation.
Shaheen Mistri, Founder & CEO of Teach For India, sees potential in AI-driven education and the Bharatiya Bhasha Pustak Scheme, which aims to enhance digital learning in regional languages. However, she underscores the need for greater investment in school leadership and infrastructure to ensure long-term success.
Medical and IIT Expansion
The budget has prioritized medical and engineering education by increasing the number of IIT and medical seats, a move welcomed by Kadwin Pillai, Managing Director of Transworld Educare and Chairman of Kings International Medical Academy. He believes that this initiative will position India as a global medical hub, boosting medical tourism and enhancing healthcare accessibility.
Dr. K.S. Nagabhushana, Director – Research at the Prayoga Institute of Education Research, appreciates the introduction of 10,000 fellowships under the PM Research Fellowship Scheme and Centers of Excellence in AI. However, he notes that more resources are needed for teacher training and curriculum development to maximize the impact of these initiatives.
Inclusive and Skilled India
. As India aims to position itself as a global leader in education and innovation, the success of these policies will depend on their implementation and long-term sustainability.
The education sector now stands at a pivotal juncture, and with the right execution, the reforms introduced in the budget have the potential to transform learning, empower students, and create a future-ready workforce. As industry leaders and educators work together, India’s journey towards becoming a knowledge-driven economy is well underway.
Challenges and Recommendations
Despite the ambitious reforms, effective execution remains a challenge.
- Implementation of AI in Education: Ethical AI deployment, teacher training, and infrastructure readiness must be prioritized.
- Vocational Training Alignment: Industry-academia collaboration is essential to ensure that skilling programs meet workforce demands.
- Digital Divide & Connectivity: Rural infrastructure development is crucial to achieving universal digital access.
- Inclusive Research Funding: Broadening research fellowships to more institutions beyond IITs and IISc could spur innovation at a national level.
- Policy Follow-Through: Tax incentives and ease of access to education loans should be streamlined to maximize the impact of financial reforms.
Expert Analysis & Perspectives
Integration of AI in Education
Raj Singhal, Co-founder & CEO of Footprints Childcare, and Pankaj Jha, Managing Director, MAXHUB India, both emphasized the transformative role of AI in education. The ₹500 crore allocation for AI Centres of Excellence will enable personalized learning experiences, adaptive learning models, and research in EdTech. However, successful implementation will depend on faculty training, ethical considerations, and data privacy regulations.
STEM and Digital Education Boost
Anish Shah, CFO, Zee Learn Limited, highlighted the Atal Tinkering Labs initiative as a crucial step in fostering curiosity and innovation among students. Similarly, Waseem Javed, Founder & CEO of EduVib, pointed out that these labs will create a globally competitive talent pool.
Vinesh Menon, Director General & CEO, ARISE, also appreciated the emphasis on digital infrastructure, which aligns with India’s Viksit Bharat vision. Ensuring broadband connectivity in rural schools will democratize access to global learning resources, reducing educational disparities.
Higher Education & Vocational Training
Chandrashekhar Sripada, CEO, Clinical Professor (OB), ISB, and Anish Srikrishna, CEO, TimesPro, applauded the government’s commitment to vocational education. The five National Centres of Excellence for Skilling, coupled with 10,000 fellowships for technological research, indicate a clear roadmap toward strengthening India’s academic and research ecosystem.
However, Dr. Partha Chatterjee, Dean of Academics, Shiv Nadar University, raised concerns about the exclusivity of research fellowships being limited to IITs and IISc, suggesting that a broader inclusion of universities could drive innovation across multiple disciplines.
Inclusivity and Language-Based Learning
Sujatha Kshirsagar, President, Career Launcher, and Alison Barrett, MBE, Country Director India, British Council, praised the Bharatiya Bhasha Pustak Scheme for fostering inclusive learning. Providing digital access to regional language books will bridge the urban-rural educational divide and enhance subject comprehension.
Healthcare & Medical Education
The expansion of medical education, with a planned increase of 75,000 seats over five years, has been well received by industry experts, including Husien Dohadwalla, Co-CEO, Crimson Schools. This will not only address the shortage of healthcare professionals but also enhance India’s medical research capabilities.
Economic and Taxation Reforms Impacting Education
Abhishek Mohan Gupta, Founder of Shrewsbury International School India, emphasized the positive impact of income tax reductions on household spending and investment in private education. Similarly, Amit Goyal, Regional Managing Director, South Asia – PMI, noted that increased disposable income could drive higher participation in upskilling programs and professional certifications.
- Dr. Prof Anand Achari, Principal, VES College of Architecture: The budget emphasis on hands-on learning bridges the gap between academia and industry, ensuring students acquire real-world skills.
Quote on Post-Budget 2025 by Dr. Prof Anand Achari, Principal, VES College of Architecture
New Delhi, February 03, 2025: The recent budget takes a significant step toward shaping the future of architecture and design in India. With cities expanding and infrastructure projects on the rise, the demand for skilled architects and urban planners has never been greater. To support this, the government has allocated ₹1.2 lakh crore to education, focusing on digital infrastructure, skill development, and improving learning outcomes—laying the groundwork for a more capable and future-ready workforce.
One of the standout aspects of this budget is its emphasis on bridging the gap between academia and industry. By encouraging hands-on, experiential learning, it ensures that students graduate with the skills needed to thrive in the real world. Increased investment in higher education, especially in research and development, aligns with the broader vision of “Viksit Bharat,” driving sustainable growth through education. The push for AI-driven learning, skilling, and entrepreneurship will further empower students, helping them navigate the evolving world of architecture and urban development with confidence.
Post-Budget Quote By Dr. Prof Anand Achari, Principal, VES College of Architecture
The recent budget takes a significant step toward shaping the future of architecture and design in India. With cities expanding and infrastructure projects on the rise, the demand for skilled architects and urban planners has never been greater. To support this, the government has allocated ₹1.2 lakh crore to education, focusing on digital infrastructure, skill development, and improving learning outcomes—laying the groundwork for a more capable and future-ready workforce.
One of the standout aspects of this budget is its emphasis on bridging the gap between academia and industry. By encouraging hands-on, experiential learning, it ensures that students graduate with the skills needed to thrive in the real world. Increased investment in higher education, especially in research and development, aligns with the broader vision of “Viksit Bharat,” driving sustainable growth through education. The push for AI-driven learning, skilling, and entrepreneurship will further empower students, helping them navigate the evolving world of architecture and urban development with confidence.
Union Budget 2025-26 Reactions: Education Sector Applauds AI, Skilling Initiatives but Flags Funding Gaps
India’s education sector leaders have responded to the Union Budget 2025-26 with optimism and concern. While the budget introduces key measures such as 50,000 new Atal Tinkering Labs, AI-focused Centres of Excellence, and broadband expansion in government schools, some experts argue that the ₹1.28 lakh crore allocation may not be sufficient to meet growing educational demands.
Dr. Prof Anand Achari, Principal, VES College of Architecture
The recent budget takes a significant step toward shaping the future of architecture and design in India. With cities expanding and infrastructure projects on the rise, the demand for skilled architects and urban planners has never been greater. To support this, the government has allocated ₹1.2 lakh crore to education, focusing on digital infrastructure, skill development, and improving learning outcomes—laying the groundwork for a more capable and future-ready workforce.
One of the standout aspects of this budget is its emphasis on bridging the gap between academia and industry. Encouraging hands-on, experiential learning, ensures that students graduate with the skills needed to thrive in the real world. Increased investment in higher education, especially in research and development, aligns with the broader vision of “Viksit Bharat,” driving sustainable growth through education. The push for AI-driven learning, skilling, and entrepreneurship will further empower students, helping them navigate the evolving world of architecture and urban development with confidence.