Budget 2025: What the Education Sector Got and Where It’s Headed

Union Finance Minister Nirmala Sitharaman presented the Union Budget for 2025-26 on February 1, announcing a total allocation of INR 1,28,650.05 crore for the education sector.
Education Budget Breakdown 2025
The Department of School Education and Literacy has been allocated INR 78,572.10 crore, accounting for 61% of the total education budget. This funding will be directed toward strengthening school education and supporting initiatives to enhance learning quality.
Meanwhile, the Department of Higher Education has received INR 50,077.95 crore, comprising 39% of the education budget. This will support the expansion and development of higher education institutions across the country.
The budget emphasises enhancing digital access, skill development, and infrastructure growth in educational institutions to prepare students for evolving job markets.
Key Announcements in Education
1. Broadband Connectivity for Rural Schools
Under the BharatNet project, all government secondary schools in rural areas will receive broadband connectivity, ensuring better access to digital learning resources and reducing the digital divide.
2. Bharatiya Bhasha Pustak Scheme for Digital Learning
The Bharatiya Bhasha Pustak Scheme aims to provide Indian language books in digital formats for school and higher education students, making educational content more accessible and enhancing comprehension.
3. National Centres of Excellence for Skilling
Building on previous initiatives, five new National Centres of Excellence for Skilling will be set up. These institutions will collaborate with global experts to develop curricula, train instructors, create a skills certification framework, and conduct periodic assessments.
4. Expansion of Atal Tinkering Labs
The government plans to establish 50,000 Atal Tinkering Labs in government schools over the next five years. These labs aim to foster innovation, scientific curiosity, and problem-solving skills among students.
5. IIT Infrastructure Expansion
The number of students enrolled in IITs has doubled over the past decade, increasing from 65,000 to 1.35 lakh. To support this growth, five IITs established after 2014 will receive additional infrastructure, creating space for 6,500 more students. IIT Patna will also undergo an infrastructure expansion, including new hostel and campus facilities.
6. Expansion of Medical Education
To address the rising demand for medical professionals, 10,000 new medical seats will be added next year, contributing to the government’s target of 75,000 additional seats over five years.
7. Centre of Excellence in AI for Education
A Centre of Excellence in Artificial Intelligence (AI) for education will be established with a INR 500 crore investment. This initiative follows similar AI research centres set up for agriculture, healthcare, and smart cities.
8. Investment in Research and Innovation
The government has earmarked INR 20,000 crore for a private-sector-driven Research, Development, and Innovation initiative, announced in the July 2024 Budget, to boost scientific research.
9. PM Research Fellowship Expansion
To support advanced research in IITs and IISc, 10,000 fellowships will be awarded under the PM Research Fellowship programme over the next five years, along with increased financial assistance for researchers.