In a major push to higher education and skilling, Finance Minister Nirmala Sitharaman announced the expansion of five Indian Institutes of Technology (IITs) to accommodate 6,500 additional students. This move is part of the government’s broader initiative to strengthen India’s premier technical institutions and equip students with industry-relevant skills in emerging technologies.
The expansion will focus on AI-driven learning, quantum computing, and semiconductor research, with Rs 500 crore allocated to establish a Centre of Excellence in Artificial Intelligence (AI) for Education. IITs set up after 2015 will receive additional infrastructure, including expanded hostel facilities, particularly at IIT Patna.
To enhance youth employment opportunities, the government will establish five National Centres of Excellence for Skilling. These centres aim to equip students with global industry skills, making India a key player in international manufacturing and technology sectors.
“The extension of PM Research Fellowship to 10,000 fellowships for technological research in IITs and IISc should boost institutional research,” said Sohrab Bararia, Partner at Grant Thornton Bharat.
50,000 New Atal Tinkering Labs in Schools
The Atal Tinkering Lab (ATL) scheme, originally launched in January 2021, has played a vital role in promoting STEM (Science, Technology, Engineering, and Mathematics) education. Currently, there are 10,000 ATLs across 722 districts in India.
To further expand hands-on learning in AI, robotics, and coding, the government has announced a fivefold increase in ATLs, with 50,000 new labs to be set up in government schools over the next five years.
The budget allocation for ATLs has seen a massive 300% increase, rising from Rs 96.83 crore in the previous year to Rs 400 crore in the current budget. This increased funding aligns with the government’s focus on STEM education and preparing students for future tech-driven careers.
The Union Budget 2025 has allocated significant funds to enhance India’s education sector. School education has received a boost with Rs 78,572 crore, marking an increase from Rs 73,008 crore last year. Similarly, Rs 50,077 crore has been earmarked to strengthen educational institutions and infrastructure, up from Rs 47,619 crore in the previous year. These increased allocations reflect the government’s commitment to improving learning facilities and expanding access to quality education across the country.
The government is also taking significant steps towards strengthening research and infrastructure. A Rs 1.5 lakh crore fund has been allocated for 50-year interest-free loans to states, specifically for infrastructure enhancement. This initiative is expected to modernise academic institutions, upgrade research facilities, and create a more conducive learning environment.
Additionally, an asset monetisation plan worth Rs 10 lakh crore will be launched for the 2025-30 period, which will help generate capital for new education and research projects. This financial support will not only strengthen India’s higher education sector but also fuel advancements in science, technology, and innovation.
The budget also emphasises urban sector reforms, with incentives focused on governance, urban land management, and planning. These reforms will facilitate better infrastructure in educational hubs and research centers, ensuring a sustainable and well-organised urban education system.
To improve the basic infrastructure in schools and research institutions, the government has increased funding for the Jal Jeevan Mission. The enhanced budget aims to ensure 100 per cent water coverage in educational institutions, addressing a critical need for improved sanitation and hygiene in schools and universities.
The University Grants Commission (UGC) will introduce higher education courses in 22 Indian languages. This initiative is designed to eliminate language barriers, allowing students from diverse linguistic backgrounds to access quality education in their native languages. By integrating regional languages into higher education, the government aims to increase accessibility, improve learning outcomes, and promote linguistic diversity in academic institutions across the country.
India’s Push for AI, Quantum Computing, and Semiconductor Research
With India emerging as a global hub for AI and semiconductor development, the expansion of five IITs will focus on:
- Artificial Intelligence & Machine Learning
- Quantum Computing
- Semiconductor Research & Manufacturing
- Robotics & Automation
- Next-Generation Digital Infrastructure
These initiatives are expected to bridge the skill gap and create a workforce equipped to handle future technological challenges.
The Education Budget 2025 reflects the Modi government’s vision to create a world-class education system with high-tech infrastructure, AI-driven learning, and global skilling opportunities. By expanding IITs, boosting research funding, and launching large-scale skilling initiatives, India is set to become a global leader in education and innovation.
