AICTE Chairman Lauds the Union Budget 2025: A Vision for Inclusive Growth and Innovation

The Union Budget 2025, presented by FM Nirmala Sitharaman, has earmarked ₹1.28 lakh crore for education sector, School education saw an increase of ₹5,564.10 crore, reaching ₹78,572.10 crore, higher education rose by ₹2,458.95 crore to ₹50,077.95 cr. 

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has earmarked ₹1.28 lakh crore for the education secto. School education saw an increase of ₹5,564.10 crore, reaching ₹78,572.10 crore, while higher education rose by ₹2,458.95 crore to ₹50,077.95 crore. Notably, IITs and NITs received an additional ₹1,370 crore, whereas IIMs faced a drastic 50% funding cut. Funding reductions for IISERs and Central Universities could impact pure science research. Meanwhile, a major digital transformation push in school education includes 50,000 new Atal Tinkering Labs and broadband expansion for secondary schools.

The Union Interim Budget 2025, presented by Union Finance Minister Nirmala Sitharaman, is a testament to the government's unwavering commitment to holistic development. With a sharp focus on Garib (poor), Youth, Annadata (farmers), and Nari (women), the budget lays a robust foundation for a progressive and inclusive India.

The journey of development is powered by four critical engines—agriculture, MSMEs, investments, and exports. The initiatives in Budget 2025 reinforce the government's efforts to accelerate economic growth, promote inclusive development, boost private sector investments, uplift household sentiments, and enhance the spending power of India’s burgeoning middle class. By prioritizing these sectors, the budget ensures that growth reaches every segment of society, creating a balanced and sustainable economic environment.

One of the most significant aspects of the budget is its emphasis on empowering MSMEs, the backbone of India’s economy. The enhancement of investment and turnover limits by 2.5 times will provide much-needed financial stability to small businesses, encouraging them to expand and innovate. Furthermore, the credit guarantee cover has been doubled, ensuring that MSMEs and startups have the financial backing necessary to thrive. Startups, in particular, will benefit immensely as the credit guarantee cover has been increased from ₹10 crore to ₹20 crore across 27 focus centers. The introduction of a new scheme for 5 lakh SC/ST women entrepreneurs is a commendable step toward fostering inclusive entrepreneurship. Providing term loans of up to ₹2 crore over five years, this scheme builds upon the success of the Stand-Up India initiative, ensuring that marginalized communities gain access to essential financial resources.

50,000 Atal Tinkering Labs

Investment in human capital and digital infrastructure remains a key focus area in this budget. The announcement of 50,000 Atal Tinkering Labs in government schools over the next five years is a visionary move aimed at fostering curiosity, innovation, and scientific temper in young minds. This initiative will provide students with access to cutting-edge technology, equipping them with skills necessary for the jobs of the future. The Bharatiya Bhasha Pustak Scheme, which will provide digital books in Indian languages for school and higher education, ensures that students can pursue their studies in their native languages, promoting linguistic inclusivity and better comprehension. The expansion of IITs, with additional infrastructure to accommodate 6,500 more students, including a significant expansion at IIT Patna, further strengthens India’s position as a global education hub. Additionally, the establishment of a Centre of Excellence in AI for Education, with a budget of ₹500 crore, will foster research and development in artificial intelligence, ensuring that India remains at the forefront of technological advancements.

10,000 MBBS seats in medical colleges

Recognizing the significance of healthcare, the budget has allocated resources for the addition of 10,000 seats in medical colleges and hospitals next year, with a goal of adding 75,000 seats over the next five years. This substantial increase in medical education capacity will help address the growing demand for healthcare professionals, ultimately improving India’s healthcare system and making quality medical education more accessible.

₹20,000 crore for Research & Development

The budget also strengthens India's research and development ecosystem, with ₹20,000 crore allocated for a private-sector-driven Research, Development, and Innovation initiative. The Deep Tech Fund of Funds will further catalyze next-generation startups, ensuring that India continues to lead in technological advancements. Under the PM Research Fellowship, announcement of 10,000 fellowships for technological research in IITs and IISc over five years, highlights the government’s commitment to nurturing intellectual talent. Additionally, the Gyan Bharatam Mission, aimed at surveying, documenting, and conserving over one crore manuscripts, will preserve India’s rich academic and cultural heritage. The establishment of a National Digital Repository of Indian Knowledge Systems further ensures systematic knowledge sharing, enabling future generations to access India’s traditional wisdom.

One of the most impactful announcements in the budget is the increase in the income tax exemption limit to ₹12 lakh for salaried class. This bold decision provides significant relief to middle-class taxpayers, enhancing their disposable income and boosting consumer spending. By leaving more money in the hands of citizens, the government has taken a crucial step toward strengthening the economy and uplifting household sentiments.

The Union Interim Budget 2025 is a forward-looking blueprint that balances economic acceleration with social equity. It strengthens the pillars of education, research, innovation, and entrepreneurship while ensuring inclusive growth. AICTE stands firmly in support of these visionary initiatives, which will empower youth, bolster the economy, and make India a global knowledge hub. As we step into a new era of development, this budget provides the impetus needed to transform India into a self-reliant, technologically advanced, and socially inclusive nation.