Education Sector's Surge
The education sector received a substantial boost in the 2026 budget, with an allocation of Rs 1,39,285.95 crore, an 8.27% increase from the previous year.
This allocation for 2025-26 was Rs 1,28,650.05 crore, demonstrating a commitment to strengthening educational infrastructure and resources. The Department of School Education and Literacy's funding rose to Rs 83,561.41 crore, a 6.35% increase from Rs 78,572 crore. Higher Education also benefited, with an allocation of Rs 55,724.54 crore, marking an approximate 11.28% growth from Rs 50,078 crore. These investments are intended to drive educational excellence at all levels.
Boosting Healthcare & Research
Several initiatives were announced to bolster healthcare and research capabilities. Four telescope infrastructure facilities will be established or upgraded to promote astrophysics and astronomy, fostering scientific advancements. The government is also setting up three new National Institutes of Pharmaceutical Education and Research and upgrading seven existing institutions to make India a global hub for biopharmaceutical manufacturing. Ayurveda received a push through the establishment of three new All India Institutes of Ayurveda. AYUSH pharmacies will be upgraded to improve medicine quality and availability. New veterinary and para-veterinary colleges will be established, with government financial assistance, to increase the number of veterinary professionals to 20,000.
Skills and Entrepreneurship
The budget emphasizes skill development and entrepreneurship. Corporate Mitras will be created with the help of professional institutions to develop short-term modules and practical tools. The Finance Minister announced the creation of Content Creator Labs in 15,000 secondary schools and 500 colleges to boost the animation, visual effects, gaming, and comics (AVGC) sector. Furthermore, an SME Development Fund of Rs 10,000 crore was allocated to support young entrepreneurs, helping them establish and grow their ventures. The National Council for Hotel Management will be upgraded to the National Institute of Hospitality to train youth to industry standards, ensuring a skilled workforce.
Infrastructure and Expansion
To support comprehensive development, the budget includes plans for establishing five university townships near industrial and logistics corridors, with central government backing. These townships will incorporate multiple colleges, universities, research institutes, skill centers, and residential complexes. A girls’ hostel will be opened in every district to enhance educational access. In addition, the Finance Minister announced that 10,000 tourist guides will be trained for 20,000 iconic sites across the country, supported by IIMs, receiving specialized training through short-term courses.
Focus on Employment
The government proposed the creation of an Education to Employment and Enterprise Standing Committee, tasked with driving India's development by improving factors related to employment and exports. The budget also emphasizes the importance of understanding the impact of AI on employment and required skills. Furthermore, the Finance Minister allocated Rs 10,000 crore over five years to the biopharma sector. This allocation aims to lower medicine costs for serious diseases and position the nation as a key biopharma hub. The budget also announced the establishment of three new AIIMS.
