The release of the Union Budget 2025 by the Minister of Finance Nirmala Sitharaman unveiled that ₹ 1,28 crore has been allocated to the education ministry. Read further to know the reactions of education experts to Union Budget 2025-26
Experts react to Union Budget 2025 allocation for Department of School Education & Literacy
Union Budget 2025 for Education: Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025 in Parliament on February 1, 2025, unveiling a substantial allocation of ₹ 1,28,650.05 crore for the education sector. This marks a significant step forward in the government's focus on reshaping India's educational landscape. With the total allocation split between the Department of School Education and Literacy (₹ 78,572.10 crore) and the Department of Higher Education (₹ 50,077.95 crore), the Budget aims to provide a boost to both primary and higher education while addressing pressing needs in infrastructure, skill development, and innovation.
The focus of the 2025 education budget lies in expanding opportunities for students, incorporating cutting-edge technologies, and ensuring equitable access to quality education. Key initiatives include a commitment to broadband connectivity for government secondary schools, the establishment of 50,000 Atal Tinkering Labs, and enhanced funding for the growing demand for AI-driven education.
Increased Funding for School and Higher Education
The allocation for school education saw an increase of ₹5,564.10 crore, from ₹73,008 crore in 2024-25 to ₹78,572.10 crore in 2025-26. The higher education sector received a more modest increase, rising from ₹47,619 crore to ₹50,077.95 crore.
Major Expenditure Heads under the Department of School Education and Literacy
The Department of School Education and Literacy has several key initiatives and expenditure heads under which the funds will be allocated. While an increase has been seen in the total budget allocation for schools. However, fundings for Navodaya Vidyalaya Samiti (NVS) have been decreased from ₹5800 Crore to ₹5305.23 Crore. Below are the key figures for the financial year 2024-25:
| Expenditure Head | 2024-25 Allocation (₹ Crore) | 2025-26 Allocation (₹ Crore) |
|---|---|---|
| Samagra Shiksha | 37,500 | 41,249.98 |
| Autonomous Bodies (including KVS and NVS) | 15,638.67 | 15,430.58 |
| Total Centrally Sponsored Schemes (including PM POSHAN) | 57,427.39 | 62,660.00 |
While the increases in both sectors are seen as positive, experts note that the challenges in India’s education system remain vast, especially in improving quality at the grassroots level and expanding opportunities for skill-based education in schools.
Industry Experts Weigh In
Neelima Kamrah, Principal of KIIT World School, Gurugram, praised the Budget’s focus on fostering a "Viksit Bharat" with initiatives such as the introduction of 50,000 Atal Tinkering Labs. She emphasized that these labs will help students develop scientific temper and innovation skills. Additionally, the provision of broadband connectivity to all government secondary schools will be pivotal in bridging the digital divide. Kamrah also highlighted the positive impact of establishing five National Centers of Excellence for skilling, which will align Indian youth with global opportunities.
Dr. Silpi Sahoo, Chairperson of SAI International Education Group, welcomed the transformative steps in AI and digital inclusion, particularly the establishment of a Centre of Excellence for Artificial Intelligence in Education. With a ₹500 crore allocation, this initiative aims to integrate AI into the education system, further driving technological innovation and access to education. She also pointed to the expansion of IITs and the introduction of PM Research fellowships as critical moves to support research and innovation at the highest levels.
Praneet Mungali, Trustee and Secretary of Sanskriti Group of Schools, lauded the government's focus on strengthening the STEM ecosystem through investments in new infrastructure for IITs and the creation of AI Centres of Excellence. These initiatives, he believes, will help position India as a global leader in emerging technologies. He particularly noted the expansion of Atal Tinkering Labs as a significant step toward cultivating innovation in young students across the nation.
Sanamdeep Chadha, Education Reformist and Director at Genesis Global School, Noida, echoed the general appreciation for the enhanced focus on higher education and skill development but raised concerns about the need for more attention on upgrading school education. Chadha suggested that while initiatives like AI Centres and fellowships are vital for higher education, the foundational stages of education—where skill-based learning can be integrated early—are crucial to preparing students for future job markets.
Shishir Jaipuria, Chairman of Seth Anandram Jaipuria Group of Educational Institutions, took a balanced approach, praising the government's holistic view on education. He highlighted the inclusion of 50,000 Atal Tinkering Labs and the broadband push for government schools, which he believes will lay the foundation for a more equitable education system. Jaipuria also commended the creation of the Centre of Excellence for AI, calling it a vital step for India to catch up in the global AI race and build a culture of technological research.
Future-Ready Education and Skill Development
The 2025 education budget places significant emphasis on skill development, with the establishment of five National Centers of Excellence for skilling and the creation of the PM Research fellowship at IITs and IISc. These initiatives aim to equip the youth with the necessary skills to excel in a rapidly evolving job market, while the expansion of IITs and the establishment of Centres for AI-driven learning could propel India’s position as a global innovation hub.
However, as several experts pointed out, while these steps are essential, there remains an urgent need to focus on the foundational aspects of school education. Upgrading teaching methods and incorporating skill-based learning at the school level will be crucial to ensuring that students are equipped with the right tools for the future.
A Balanced Step Towards Educational Transformation
The Union Budget 2025 has made bold strides in terms of funding and policy direction, setting the stage for a more inclusive and future-ready education system in India. The focus on AI, skill development, and innovation is commendable, but experts agree that continuous effort is needed to address the challenges at the grassroots level. As the government rolls out these initiatives, it will be important to ensure that the benefits reach every corner of the country, enabling all students to thrive in an increasingly digital and skill-oriented world.
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