
NEW DELHI: From a major push to Artificial Intelligence to the expansion of five new IITs, which will accommodate 6,500 more students and focus on quality school education and innovation, the education sector saw a hike of over six per cent in the Union Budget 2025 from the previous budget.
The Education Ministry was allocated Rs. 1,28,650.05 crore, an increase of 6.65%. This figure exceeds the revised estimate of Rs 1.14 lakh crore in 2024-25.
While the Higher Education department has been allocated Rs 50,077 crore, the school education department has received Rs 78,572 crore to strengthen school education and support various initiatives to improve the quality of schooling across the country.
Taking to X, formerly Twitter, Union Education Minister Dharmendra Pradhan said, “highest-ever allocation of Rs 1,28,650 crore for the education sector in #ViksitBharatBudget2025 with several new-age initiatives.”
“With a focus on quality school education, skill development, innovation, research and entrepreneurship, Bharatiya Bhasha, this budget is a generational blueprint to cater to the wholesome requirements of our children and youth - key drivers who will lead from the front in realising the Viksit Bharat agenda in 2047 and beyond.”
Describing the budget as a forward-thinking vision for higher education that focuses on skill development, innovation, and inclusivity, University Grants Commission (UGC) Chairman Prof. M. Jagadesh Kumar said the substantial increase in the budget allocation for higher education, from Rs. 46,482.35 crore in 2024-25 to Rs. 50,077.95 crore in 2025-26, represents a significant 7.74% rise.
“This increased investment will enable us to further enhance the quality of education, support research and innovation, and expand access to higher learning opportunities for all.”
In her budget speech, Union Finance Minister Nirmala Sitharaman said in 2023, she had announced three Centres of Excellence in Artificial Intelligence for agriculture, health, and sustainable cities. “Now a Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of Rs. 500 crore.”
Highlighting the expansion of the Indian Institutes of Technology (IITs), a network of engineering and technology institutions in India, which were first established in 1950, she said the total number of students in 23 IITs had increased 100 percent from 65,000 to 1.35 lakh in the past 10 years.
“Additional infrastructure will be created in the five IITs started after 2014 to facilitate education for 6,500 more students.” Hostel and other infrastructure capacity at IIT, Patna will also be expanded, she announced for poll-bound Bihar.
The IITs have been allocated Rs. 11349.00 crore, against Rs. 10324.50 crore in 2024-25, which is Rs. 1024.50 crore more - marking a 9.92% increase.
Sitharaman also proposed implementing a Bharatiya Bhasha Pustak Scheme to provide digital-form Indian language books for school and higher education. The aim is to help students understand their subjects better.
The Indian Knowledge System (IKS) also saw a substantial funding increase - from Rs. 10 crore to Rs. 50 crore in the 2025-26 budget.
She also announced the setting up of 50 000 Atal Tinkering Labs in government schools across the country. “Fifty thousand Atal Tinkering Labs will be set up in government schools in the next five years to cultivate the spirit of curiosity and innovation and foster a scientific temper among young minds,” she said.
Regarding school education, she announced that government secondary schools and public health centres will be provided with broadband connectivity. “Broadband connectivity will be provided to all government secondary schools and primary health centres in rural areas under the Bharatnet project,” she said.
In school education, the highest-ever budget allocation may be seen in an autonomous body like Kendriya Vidyalaya Sangathan (KVS) at Rs. 9,503 crore, which has increased by Rs. 201.17 crore compared to the budget allocation of the previous year.
Building on the initiative announced in the July 2024 Budget, she announced the setting up of five National Centres of Excellence for skilling. These centres will be established with global expertise and partnerships to equip the youth with the skills required for “Make for India, Make for the World” manufacturing.
“The partnerships will cover curriculum design, training of trainers, a skills certification framework, and periodic reviews,” she said.
The UGC chairman said establishing five National Centers of Excellence for Skilling, equipped with global expertise, is a significant step towards empowering our youth with industry-relevant skills and enhancing their employability.
“The creation of a Centre of Excellence for AI in education, with an outlay of Rs. 500 crore, underscores the government’s recognition of AI’s transformative potential and its importance in shaping the future of learning. Expanding and adding new infrastructure for 5 IITs and creating 5,000 additional seats will boost access to quality higher education for all."
He added that the PM Research Fellowship scheme, providing 10,000 scholarships over the next five years, will significantly boost technological research in premier institutions like IITs and IISc, promoting a culture of innovation and research excellence.