Union Budget 2026 expectations: Education stakeholders push for AI infrastructure, skill-based learning and more

As the Union Budget approaches, education stakeholders across schools, higher education, skilling and edtech are outlining expectations for policy measures that strengthen outcomes, employability and workforce readiness. Leaders say the next phase of education reform must prioritise execution, infrastructure and alignment with emerging economic and technological needs, including artificial intelligence and climate action.

This will be the ninth consecutive Budget presented by Finance Minister Nirmala Sitharaman and the second full-fledged Budget of the third term of the Prime Minister Narendra Modi-led government. With Rs 1.28 lakh crore allocated to the Ministry of Education last year, stakeholders now expect Budget 2026 to sharpen focus on AI-led learning, climate education infrastructure, skill-based education, teacher capacity-building and stronger industry–academia collaboration.




AI-led learning and infrastructure continuity

Several education leaders said the momentum created by the previous Budget must be carried forward. Anil Kapasi, Managing Director and Co-Founder of Arihant Academy, said last year’s Budget reflected “a clear, forward-looking approach to education, with a strong emphasis on AI-led learning through the establishment of AI Centres”. Kapasi added that these initiatives paved the way for “more personalised, adaptive, and efficient education outcomes”.

Kapasi noted that the Union Budget 2025 allocated Rs 1.28 lakh crore to the Ministry of Education, with focused investments across school and higher education, including 50,000 Atal Tinkering Labs, skilling centres and expanded IIT infrastructure. Looking ahead, he said Budget 2026 is expected to be “the next building block in strengthening the education ecosystem”, with greater emphasis on skill-based education, digital literacy and teacher empowerment. He also highlighted the need to continue support for schemes such as Samagra Shiksha, PM-POSHAN and PM SHRI to ensure balanced growth across rural and urban India.

Nishant Chandra, Co-Founder of Newton School, said the education narrative is shifting from access to outcomes. “India has made real progress on scale, but capacity and learning quality have not kept pace,” Chandra observed. He pointed out that higher education enrolment has crossed 4.3 crore students and the Gross Enrolment Ratio has reached 28.4%, yet employability remains a concern.

Chandra noted that despite producing over 15 lakh engineers annually, only 50–55% of graduates are considered employable. Referring to the Rs 500 crore Centre of Excellence for AI in Education announced last year, he said the next phase must focus on execution, including modern labs, maker spaces, shared digital and computer facilities, and faculty readiness through industry exposure.

Climate education and green jobs gain policy attention

Climate education emerged as a key area of focus ahead of Budget 2026. Manav Subodh, Founder of 1M1B, said India needs “dedicated investment in climate education and climate infrastructure to turn green intent into green jobs”. In an email interaction with TOI Education, Subodh called for city- and district-level climate innovation labs, open climate data platforms and shared access to testing and prototyping facilities.

“Without physical and digital climate infrastructure, skilling remains theoretical,” Subodh said, adding that such investments would allow young people to work on live challenges in energy transition, waste systems, mobility and climate resilience. He also proposed a national Climate Innovation Fund to help scale a future-ready, job-creating green economy.

Schools, teachers and holistic learning outcomes

At the school education level, stakeholders stressed teacher empowerment and holistic development. Shweta Sastri, Managing Director of Canadian International School, Bengaluru is of the opinion that sustained investment in teaching quality and infrastructure is essential. “Empowering educators through continuous professional development and digital upskilling must be a priority, as teachers are the cornerstone of any high-performing education system,” she observed.

Sastri also said higher allocations would support the establishment of new K–12 schools, strengthen government school infrastructure and bridge the urban–rural education gap. She highlighted the importance of strengthening STEM education and application-based learning from an early stage, adding that lowering interest rates on education loans would ease financial pressures on families.

Niru Agarwal, Managing Trustee of Greenwood High International School, said the Budget must now focus on translating policy reforms into measurable outcomes. “This must address the evolving needs of students and educators, especially in rural and underserved regions,” Agarwal shared. She emphasised skill-based education, increased women’s participation in STEM fields and stronger blended learning ecosystems integrating digital tools, physical infrastructure and experiential learning. Agarwal also highlighted the role of public–private partnerships in expanding access and improving system efficiency.

Digital skilling and certification frameworks

From the edtech perspective, Abdul Ahad, General Manager for Global Expansion at N+, said the growing demand for AI and technology skills has highlighted gaps between education and employment. “Investing money into verified certification frameworks, scalable online infrastructure, and hands-on learning programs can help close the gap between education and getting a job,” Ahad reflected.

Ahad added that policy support for digital education platforms, AI literacy and skill development programmes aligned with industry needs would help learners remain relevant in a technology-driven economy, particularly in underserved regions.

Apprenticeships and workforce readiness

Apprenticeships were highlighted as a critical workforce strategy. Dr Nipun Sharma, CEO of TeamLease Degree Apprenticeship, said apprenticeships enable “learning by doing” and support socio-economic mobility by allowing young people to earn while they learn. Sharma said apprenticeships should be positioned as a core driver of India’s workforce and economic growth strategy.

Sharma called for targeted tax incentives to encourage MSMEs to engage apprentices and additional incentives for women apprentices to improve workforce diversity. He also stressed the need for clearer alignment between the NAPS and NATS frameworks and greater transparency in apprenticeship engagement to support long-term workforce planning.

Institutional reforms and affordability

Rajiv Gowda, Chief Executive Officer of East Point Group of Institutions, said education institutions are hopeful for meaningful reforms and increased investment. “We expect bold reforms that strengthen digital infrastructure, promote AI-enabled learning and encourage industry–academia collaboration,” Gowda said in his response shared with TOI Education.

He also highlighted the need to reduce GST on education services to improve affordability for middle-class families, along with continued support for teacher training, STEM initiatives, scholarships and interest-free loans for economically weaker students.

As Budget 2026 approaches, stakeholders across the education ecosystem are aligned in their call for policies that connect learning with climate action, technological change and employment generation, underscoring education’s role in long-term national development.
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