In a significant push for higher education, the Union Budget 2025-26 has allocated Rs 50,077.95 crore for the sector, reflecting a 7.74% increase from the previous year’s Rs 46,482.35 crore. University Grants Commission (UGC) Chairman, Prof. M. Jagadesh Kumar, emphasised that this investment will enhance education quality, drive research and innovation, and ensure greater accessibility to learning opportunities.
Prof. Kumar, a noted academic and education policymaker, highlighted that the government’s focus is not just on increasing funding but also on strategic investments in emerging fields, technological advancements, and language inclusivity. These measures align with the broader objectives of the National Education Policy (NEP) 2020, which envisions a holistic transformation of India’s higher education landscape.
One of the key highlights of the budget is the increase in funding for Central Universities, which has now reached Rs 16,146.11 crore, compared to Rs 15,538.23 crore last year. This rise will enable universities to upgrade infrastructure, support research initiatives, and provide quality education to students across the country. Additionally, the budget for Centrally Sponsored Schemes has been increased to Rs 1,815 crore, which will directly strengthen initiatives such as PM-USHA & RUSA, ultimately benefiting students from diverse socio-economic backgrounds.
Prof. Kumar underscored that these financial allocations demonstrate the government’s commitment to expanding higher education access while maintaining global standards. He stated, “Investing in our universities is crucial for building a knowledge-driven economy. By strengthening our educational institutions, we are preparing a generation of skilled professionals and researchers who will contribute to India’s growth on a global scale.”
A major initiative receiving increased financial support is the Bharatiya Bhasha Pustak Scheme, designed to promote learning in Indian languages and enhance digital access to educational resources. The funding for the Indian Knowledge System (IKS) has been increased from Rs 10 crore to Rs 50 crore, allowing researchers and institutions to explore, document, and disseminate India’s intellectual heritage.
According to education experts, this initiative will not only preserve traditional knowledge but also help students engage with academic content in their native languages, making learning more inclusive. The UGC is preparing 22,000 textbooks in 22 Indian languages for undergraduate and postgraduate studies to further support this effort.
Recognizing the importance of technological advancements in education, the government has allocated Rs 3,500 crore to establish a Center of Excellence for Artificial Intelligence (AI) in Education. This center will focus on integrating AI into the learning process, developing intelligent tutoring systems, and creating AI-driven research opportunities.
Experts believe that this initiative underscores the growing role of AI in shaping the future of education, from personalised learning experiences to automated assessment tools. Prof. Kumar emphasised, “AI is transforming every sector, and education is no exception. By investing in AI-driven education models, we are ensuring that India remains at the forefront of global technological innovation.”
In addition to AI, the budget also provides for the establishment of five National Centers of Excellence for Skilling, aimed at equipping students with industry-relevant skills. These centers will collaborate with global experts to enhance the employability of Indian graduates.
The budget includes provisions for expanding infrastructure in five IITs and creating 5,000 additional seats. This initiative is designed to increase accessibility to high-quality technical education and accommodate the growing number of aspirants seeking admission into these premier institutions.
Additionally, the budget for digitising academic credentials through the Academic Bank of Credits (ABC) has been increased to Rs 16 crore. This move is expected to streamline student records and enable seamless access to academic achievements. Experts have hailed this as a step toward building a digitally integrated education ecosystem, ensuring greater transparency and efficiency in academic record management.
One of the standout announcements in the budget is the expansion of 50,000 Atal Tinkering Labs (ATLs). These labs serve as innovation hubs for young students, allowing them to experiment with new ideas and develop problem-solving skills.
Prof. Kumar stated, “By providing students with access to state-of-the-art facilities, we are nurturing the next generation of innovators and entrepreneurs.” Educational analysts believe that ATLs will play a crucial role in promoting STEM (Science, Technology, Engineering, and Mathematics) education among school and college students, bridging the gap between theoretical knowledge and practical application.
To boost high-quality research in premier institutions like IITs and IISc, the PM Research Fellowship Scheme will offer 10,000 scholarships over the next five years. This initiative is expected to encourage more students to pursue research careers and contribute to cutting-edge advancements in science and technology.
Dr. Ramesh Chandra, a senior academic researcher at IISc, welcomed this move, saying, “India has immense research potential, but financial constraints often deter bright minds from pursuing doctoral studies. This scholarship program will provide much-needed support to young researchers and drive innovation in key scientific domains.”
Prof. Kumar reaffirmed UGC’s commitment and stated that,”Education is the backbone of a developed nation. Through continued investment in research, innovation, and infrastructure, we are laying the foundation for a future-ready education ecosystem.”
The Union Budget 2025-26 marks a significant step toward strengthening India’s higher education sector, with a focus on accessibility, quality, research, and skill development. By investing in emerging technologies, expanding research opportunities, and promoting inclusivity, the government is paving the way for a knowledge-driven economy.
As India aspires to become a global leader in education and innovation, these budgetary provisions will play a crucial role in shaping the future of learning and research. With initiatives such as AI in education, Atal Tinkering Labs, and research fellowships, the country is well-positioned to equip its youth with the tools necessary to drive progress and compete on the global stage.
Prof. Kumar concluded by saying, “Our youth today are being empowered with knowledge, skills, and opportunities to shape a better tomorrow. This budget reinforces our vision of ‘Viksit Bharat’ – a nation that thrives on education, innovation, and excellence.”
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