Education Sector Presents Wishlist Ahead of Union Budget 2026
With the Union Budget just around the corner, education leaders across India are voicing their expectations. Schools, higher education institutions, skilling organizations, and edtech companies want policy measures that boost learning outcomes, improve employability, and prepare the workforce for future challenges.
This will be Finance Minister Nirmala Sitharaman's ninth consecutive Budget presentation. It marks the second full-fledged Budget of Prime Minister Narendra Modi's third term. Last year, the Ministry of Education received an allocation of Rs 1.28 lakh crore. Stakeholders now hope Budget 2026 will sharpen focus on several critical areas.
Artificial Intelligence and Digital Infrastructure Take Center Stage
Education leaders emphasize the need to continue momentum from previous budgets. Anil Kapasi, Managing Director and Co-Founder of Arihant Academy, points to last year's forward-looking approach. He specifically highlights the establishment of AI Centres.
"These initiatives created pathways for more personalized and adaptive education," Kapasi states. He recalls that Budget 2025 allocated Rs 1.28 lakh crore to education. This funded 50,000 Atal Tinkering Labs, skilling centers, and expanded IIT infrastructure.
Kapasi expects Budget 2026 to become the next building block for strengthening education. He calls for greater emphasis on skill-based education, digital literacy, and teacher empowerment. He also stresses continued support for schemes like Samagra Shiksha, PM-POSHAN, and PM SHRI to ensure balanced growth across India.
Nishant Chandra, Co-Founder of Newton School, observes a significant shift in education narrative. "India has made real progress on scale, but capacity and learning quality have not kept pace," Chandra notes.
He points out that higher education enrolment now exceeds 4.3 crore students. The Gross Enrolment Ratio has reached 28.4%. Yet employability remains a serious concern. Despite producing over 15 lakh engineers annually, only 50–55% of graduates are considered employable.
Chandra references the Rs 500 crore Centre of Excellence for AI in Education announced last year. He says the next phase must focus on execution. This includes modern labs, maker spaces, shared digital facilities, and faculty readiness through industry exposure.
Climate Education Emerges as Priority Area
Climate education gains substantial policy attention ahead of Budget 2026. Manav Subodh, Founder of 1M1B, argues India needs dedicated investment. "We must turn green intent into green jobs," Subodh asserts.
He calls for city- and district-level climate innovation labs. He also recommends open climate data platforms and shared access to testing facilities. "Without physical and digital climate infrastructure, skilling remains theoretical," Subodh explains.
Such investments would allow young people to work on live challenges. These include energy transition, waste systems, mobility, and climate resilience. Subodh proposes a national Climate Innovation Fund to scale a future-ready green economy.
Focus on Schools, Teachers, and Holistic Development
At the school education level, stakeholders stress teacher empowerment and holistic development. Shweta Sastri, Managing Director of Canadian International School in Bengaluru, believes sustained investment is essential.
"Empowering educators through continuous professional development must be a priority," Sastri observes. "Teachers are the cornerstone of any high-performing education system."
She says higher allocations would support new K–12 schools. They would also strengthen government school infrastructure and bridge the urban–rural education gap. Sastri highlights the importance of strengthening STEM education and application-based learning from early stages.
Lowering interest rates on education loans would ease financial pressures on families, she adds.
Niru Agarwal, Managing Trustee of Greenwood High International School, says the Budget must translate policy reforms into measurable outcomes. "This must address evolving needs of students and educators, especially in rural regions," Agarwal shares.
She emphasizes skill-based education and increased women's participation in STEM fields. Agarwal also calls for stronger blended learning ecosystems integrating digital tools and experiential learning. She highlights the role of public–private partnerships in expanding access and improving efficiency.
Digital Skilling and Certification Frameworks
From the edtech perspective, Abdul Ahad, General Manager for Global Expansion at N+, notes growing demand for AI and technology skills. This demand highlights gaps between education and employment.
"Investing in verified certification frameworks and hands-on learning programs can help close the gap," Ahad reflects. He says policy support for digital education platforms and AI literacy would help learners remain relevant in a technology-driven economy.
Apprenticeships as Workforce Strategy
Apprenticeships receive attention as a critical workforce strategy. Dr Nipun Sharma, CEO of TeamLease Degree Apprenticeship, says apprenticeships enable "learning by doing." They support socio-economic mobility by allowing young people to earn while they learn.
Sharma believes apprenticeships should become a core driver of India's workforce and economic growth strategy. He calls for targeted tax incentives to encourage MSMEs to engage apprentices. Additional incentives for women apprentices would improve workforce diversity.
He also stresses clearer alignment between NAPS and NATS frameworks. Greater transparency in apprenticeship engagement would support long-term workforce planning.
Institutional Reforms and Affordability Concerns
Rajiv Gowda, Chief Executive Officer of East Point Group of Institutions, expresses hope for meaningful reforms and increased investment. "We expect bold reforms that strengthen digital infrastructure and promote AI-enabled learning," Gowda states.
He highlights the need to reduce GST on education services to improve affordability for middle-class families. Continued support for teacher training, STEM initiatives, scholarships, and interest-free loans for economically weaker students remains crucial.
As Budget 2026 approaches, stakeholders across the education ecosystem unite in their call. They want policies that connect learning with climate action, technological change, and employment generation. Their demands underscore education's vital role in long-term national development.
