| In the Union Budget 2025, Finance Minister of India, Nirmala Sitharaman made an allocation of ₹1.28 lakh crore for the education sector. IIMs are now budgeting the half of what they used to , as there is 50% cut in budget allocation for IIMs, while IITs got their funding increased significantly. This change in allocation is causing debates across the education sector. Important changes and updates will follow, stay tuned. |
Union Budget 2025: In the 2025-26 Budget, a remarkable shift in funding is witnessed as IITs and NITs gel ₹1,370 crore more, while IIMs witnessed a substantial 50% budget cut. At the same time, school education gets a great boost with a emphasis on digital learning and improved infrastructure. This move reflects the government's new priorities in education.
Union Minister of Finance, Nirmala Sitharaman, whilst presenting her 8th consecutive budget in Parliament, elaborated on measures the government intends to adopt towards establishing a fortification of the education sector in India. She reiterated the incumbent government's signifier and pledge to furnish for ‘Viksit Bharat’ by eradicating poverty and establishing quality education and easy access to health care.
In her address in Parliament, Nirmala Sitharaman brought forth inspiring words and quotes from a great Telugu literary writer, Gudrudda Appa Rao: "Desamante Matti Kaadoi, Desamante Manushuloi". This means'' A country isn't just land and borders. It is the people who make up its real heart and soul. The real substance of a nation resides in the lives and stories of its people.
The important details from the Union Budget 2025 are tabulated below:
Major Announcement | Highlights | Insightful Takeaways |
More Seats at Medical Colleges | By next year, there will be 10,000 more seats in hospitals and medical schools; by the next five years, there will be 75,000 more. | Medical education in India and healthcare have been stressed upon, consequently, growth is anticipated in substantial terms. |
IITs' Infrastructure Boost | 5 IITs will have more infrastructure that were established after 2014. Infrastructure and the hostel at IIT Patna will be improved. | Prepares a solid foundation for strengthening IITs with a emphasis on development of infrastructure , notably at IIT Patna. |
Growth in the Enrollment of IIT Students | Over the past ten years, the overall enrollment in 23 IITs has increased from 65,000 to 1.35 lakh. | The increase in the enrollment of students in the IITs is an indicator of greater access to world-class education. |
Technology Research Fellowships | 10,000 fellowships for tech studies at IITs and IISc over the next 5 years. | A great boost for technological and research talent developing new ideas and growth. |
Setting Up of Atal Tinkering Labs | In the coming five years, 50,000 Atal Tinkering Labs will be set up to ignite scientific temperament and creativity in young minds. | These laboratories will allow the students to explore science and technology and explore possibilities for future ideas. |
Broadband Connectivity for Schools and Healthcare | Broadband connectivity will be expanded to all government secondary schools and primary healthcare centers. | Connectivity has been expanded, therefore, will lead to remarkable infrastructure growth in education and healthcare. |
Bharatiya Bhasha Pushtak Scheme | Introduction of a project which is aimed to offer e-books in Indian languages to schools and higher education students. | Indian languages, other than Hindi and English, are focused on developing and introducing courses to facilitate the inclusion of Indian language e-books in e-stores. |
Centre of Excellence in Artificial Intelligence (AI) | Rs 500 crore allocation for setting up a Centre of Excellence in AI for education. | Hi-tech educational development investments in AI to improve technology and education quality. It complements the vision of being in the reckoning for current trends while embedding AI into learning objectives. |
| National Centres of Excellence for Skilling | 5 National Centres of Excellence for Skilling will be established to hone the skills of youths. | This goes well with the vision of Make in India, Make in the world, From creating a framework for the course curriculum to quality training, and from certifications to reviews, everything seems quite well programmed. |
Viksit Bharat Vision | Complete eradication of poverty, quality and value addition in education and healthcare accessibility. | Visionary approach towards the eradication of poverty and improvement of healthcare dovetailing with the "Developed India". |
Meaningful Observations From Union Education Budget 2025
The insights from the table above are numbered below:
- Paradigm shift, especially in education budget of India 2025. ₹1.28 lakh crore for the education sector in Union Budget 2025 solidifies government's decision of providing quality education.
- The budget for school education shows the growth from ₹73,008 crore in 2024-25 to ₹78,572.10 crore in 2025-26, signifying an increase of ₹5,564.10 crore.
- Opposite of that, the allocation for higher education witnessed a mediocre increase, going from ₹47,619 crore to ₹50,077.95 crore, a growth of ₹2,458.95 crore.
- Education in engineering and technical field has been prioritized as IITs and NITs get an additional ₹1,370 crore.
- IIMs witness a substantial reduction in with 50% budget cut.
- IISERs and Central Universities also witness reductions that will greatly influence research in pure sciences.
- National Institute of Food Technology to be set up in Bihar.
- School education has been given a great forward leap with 50,000 new Atal Tinkering Labs and broadband expansion for secondary schools.
- PM Research Fellowship budget grows from Rs 350 crore to Rs 600 crore, adding 10,000 new fellowships for research at IITs and IISERs.
Comparative Study of Union Budget 2025-26 With Union Budget 2024-25
The table below compares the 2024-25 budget allocation with 2025-26 budget allocation for different categories in engineering institutes, management institutes and research institutes.
There is a paradigm shift in funding for school education and higher education. The table below presents this:
Funding Distribution in Schools and Higher Education Institutions | |||
Impact Analysis of Union Education Budget 2025-26
The major points of implications to take into account are:
- There many be decrease in dropout rates, promoting distance learning opportunities, and enhancing the learning rate in schools.
- The small rise in funding for higher education may have mixed consequences as the government moves toward higher complementary education.
- The higher emphasis and faith placement Indian technical institutions could lead to the creation of world-class research facilities and expanded advanced programs in artificial intelligence, robotics, and biotechnology.
- Future implications could include diminished capacity on the part of the IIMs to grant scholarships, fund faculty research, and provide proper infrastructure facilities.
- Funding cuts for IISERs and Central Universities could lead to reduced scientific research activities, poor research output, and declining credibility among other scientific communities; hence, India may fall down on the global scientific ladder.
- The development of a skilled workforce in Bihar would be able to contribute to food processing, food waste recovery management, and improved food production techniques.
- Modern school education technology implementation with the incubation of innovative and entrepreneurial skills.
- Raising the PM Research Fellowship Budget could open up various channels for intelligent researchers to engage in advanced studies, collaborate with global partners, and contribute to research outputs in India.
