Union Budget 2025: A Tech Leap for Education and Skill Development

Experts from diverse educational and industrial backgrounds have hailed the budget’s focus on AI integration, hands-on learning, expansion of medical and engineering seats, and accessibility enhancements. However, while many welcome these measures, there are calls for deeper investments in primary and secondary education, teacher training, and infrastructure development.

Allocation to Education has seen a marginal increase of 6.65% in the Union Budget 2025 presented to the Parliament on February 1, 2025 by Finance Minister Nirmala Sitharaman. The total allocation for education has increased from ₹1.20 lakh crore last year to ₹1.28 lakh crore this year.

• School Education: The allocation has increased by 16.28% from the revised estimates of 2024-25, going from ₹73,008 crore to ₹78,572 crore.
• Higher Education: The allocation has risen by 5% from ₹47,619 crore last year to ₹50,077 crore this year.

Key Budget Announcements

1. AI in Education: Establishment of three Centres of Excellence in Artificial Intelligence (AI) with a total allocation of ₹500 crore.
2. Atal Tinkering Labs Expansion: 50,000 additional labs in government schools to boost STEM education.
3. Bharatiya Bhasha Pustak Scheme: Digital access to Indian language books to foster multilingual learning.
4. Higher Education Expansion: Increase in IIT seats by 6,500 and medical education expansion with 10,000 new seats in 2025, targeting 75,000 over five years.
5. Five National Centres of Excellence for Skilling: Focused on industry-relevant vocational training.
6. Broadband Connectivity: Nationwide expansion in government secondary schools to bridge the digital divide.
7. Tax Reforms: Adjustments in the personal income tax structure to stimulate economic growth and increase disposable income.

The highlights in the budget for education include a Centre of Excellence for AI in Education with an outlay of Rs 500 crore plans to expand infrastructure in five Indian Institutes of Technology (IITs) and add 10,000 new medical college seats. The budget proposes setting up 50,000 Atal Tinkering Labs in government schools to promote innovation and scientific temperament. Centre of Excellence in Artificial Intelligence for education is expected to address disparities and inefficiencies in the education system, ensuring equitable and high-quality education across the nation.

AI and Digital Learning

AI integration in education is a recurring theme in the budget. Vinay Singh, CEO of Thomson Digital and Q&I, highlights AI’s potential to bridge learning gaps and enhance student engagement. Neeraj Kansal, Founder & CEO of Crack Academy, sees AI Centers benefiting rural schools, while Shantanu Prakash, Founder of The Millennium Group of Schools, emphasizes that the government’s ₹500 crore allocation for AI in education aligns well with the future of AI-driven learning.

Many experts, including Dr. Venkat Rangan (VC, Amrita Vishwa Vidyapeetham) and Prof. Indranil Manna (VC, BIT Mesra), stress the need for research and development in AI. The DeepTech Fund and PM Research Fellowships are expected to foster innovation, while broadband expansion in government schools will bridge the digital divide.

The government will provide broadband connectivity to all government secondary schools and primary health centers in rural areas. Additionally, the Bharatiya Bhasha Pustak Scheme will offer digital Indian language books for schools and higher education.

The Union Budget 2025 has allocated funds for the expansion of infrastructure in five newer Indian Institutes of Technology (IITs) established after 2014. These IITs include IIT Palakkad, IIT Dharwad, IIT Jammu, IIT Bhilai, and IIT Tirupati2. The goal is to accommodate 6,500 additional students over the next five years. This expansion aims to enhance the quality of education and support the growing number of students in these institutions.

The budget proposes adding 10,000 new medical seats in the coming year, with a long-term goal of increasing the number of seats by 75,000 over the next five years. This move aims to address the shortage of healthcare professionals in the country. The government plans to expand infrastructure in medical colleges and hospitals to accommodate the additional seats

There is also support for Medical Tourism: The ‘Heal in India’ initiative will streamline visa processes for international patients, aiming to strengthen India’s position as a global medical hub.

The budget for the skill development ministry has increased from ₹3,241 crore in the revised estimates of 2024-25 to ₹6,017 crore in 2025-26. The budget allocates ₹3,000 crore for upgrading Industrial Training Institutes (ITIs) to provide vocational training and create a skilled workforce. Also, five new National Centres of Excellence will be established with global expertise and partnerships to equip youth with industry-relevant skills. A new internship program has received a substantial increase in funding, with ₹10,831 crore allocated to support corporate training and skill development.

Rural Prosperity Program: A comprehensive multi-sectoral rural prosperity and resilience program will be launched to address under-employment in agriculture through skilling, investment, and technology.

Challenges and Areas for Improvement

Despite the ambitious initiatives, some concerns remain. Ravichandran V, Chairperson and Trustee at eVidyaloka, argues that while education funding has increased, it is still insufficient to meet the country’s growing needs. Nidheesh Saxena, Senior Education Professional, believes that more infrastructure investment and tax relief for education loans are required to ease financial burdens on students and parents.

Experts such as Atul Temurnikar (Chairman & Co-Founder, Global Schools Foundation) and Niru Agarwal (Managing Trustee, Greenwood High International School) emphasize the importance of child nutrition, digital textbooks, and public-private partnerships to ensure holistic learning outcomes.

Practical Learning in Focus

Dr. Prof Anand Achari, Principal of VES College of Architecture, highlights how the budget emphasizes hands-on learning to bridge the gap between academia and industry. Atal Tinkering Labs (ATL) and AI Centres of Excellence are set to revolutionize learning methodologies by making education more experiential. Dr. Maithili Tambe (CEO, The Academy School, Pune) echoes this sentiment, stating that the introduction of 50,000 Atal Tinkering Labs will significantly enhance STEM education.

Skilling Initiatives and GCC Expansion

Anshuman Das, CEO of Careernet, points out that the promotion of Global Capability Centers (GCCs) in Tier-2 cities will create employment opportunities, reducing the urban-rural talent divide. The Electronics Sector Skills Council of India (ESSCI) supports this move, stating that strengthening India’s domestic electronics manufacturing ecosystem will not only create jobs but also foster innovation.

Shaheen Mistri, Founder & CEO of Teach For India, sees potential in AI-driven education and the Bharatiya Bhasha Pustak Scheme, which aims to enhance digital learning in regional languages. However, she underscores the need for greater investment in school leadership and infrastructure to ensure long-term success.

Medical and IIT Expansion

The budget has prioritized medical and engineering education by increasing the number of IIT and medical seats, a move welcomed by Kadwin Pillai, Managing Director of Transworld Educare and Chairman of Kings International Medical Academy. He believes that this initiative will position India as a global medical hub, boosting medical tourism and enhancing healthcare accessibility.

Dr. K.S. Nagabhushana, Director – Research at the Prayoga Institute of Education Research, appreciates the introduction of 10,000 fellowships under the PM Research Fellowship Scheme and Centers of Excellence in AI. However, he notes that more resources are needed for teacher training and curriculum development to maximize the impact of these initiatives.

Inclusive and Skilled India

. As India aims to position itself as a global leader in education and innovation, the success of these policies will depend on their implementation and long-term sustainability.

The education sector now stands at a pivotal juncture, and with the right execution, the reforms introduced in the budget have the potential to transform learning, empower students, and create a future-ready workforce. As industry leaders and educators work together, India’s journey towards becoming a knowledge-driven economy is well underway.

Challenges and Recommendations

Despite the ambitious reforms, effective execution remains a challenge.

1. Implementation of AI in Education: Ethical AI deployment, teacher training, and infrastructure readiness must be prioritized.
2. Vocational Training Alignment: Industry-academia collaboration is essential to ensure that skilling programs meet workforce demands.
3. Digital Divide & Connectivity: Rural infrastructure development is crucial to achieving universal digital access.
4. Inclusive Research Funding: Broadening research fellowships to more institutions beyond IITs and IISc could spur innovation at a national level.
5. Policy Follow-Through: Tax incentives and ease of access to education loans should be streamlined to maximize the impact of financial reforms.

 

Expert Analysis & Perspectives

Integration of AI in Education

Raj Singhal, Co-founder & CEO of Footprints Childcare, and Pankaj Jha, Managing Director, MAXHUB India, both emphasized the transformative role of AI in education. The ₹500 crore allocation for AI Centres of Excellence will enable personalized learning experiences, adaptive learning models, and research in EdTech. However, successful implementation will depend on faculty training, ethical considerations, and data privacy regulations.

STEM and Digital Education Boost

Anish Shah, CFO, Zee Learn Limited, highlighted the Atal Tinkering Labs initiative as a crucial step in fostering curiosity and innovation among students. Similarly, Waseem Javed, Founder & CEO of EduVib, pointed out that these labs will create a globally competitive talent pool.

Vinesh Menon, Director General & CEO, ARISE, also appreciated the emphasis on digital infrastructure, which aligns with India’s Viksit Bharat vision. Ensuring broadband connectivity in rural schools will democratize access to global learning resources, reducing educational disparities.

Higher Education & Vocational Training

Chandrashekhar Sripada, CEO, Clinical Professor (OB), ISB, and Anish Srikrishna, CEO, TimesPro, applauded the government’s commitment to vocational education. The five National Centres of Excellence for Skilling, coupled with 10,000 fellowships for technological research, indicate a clear roadmap toward strengthening India’s academic and research ecosystem.

However, Dr. Partha Chatterjee, Dean of Academics, Shiv Nadar University, raised concerns about the exclusivity of research fellowships being limited to IITs and IISc, suggesting that a broader inclusion of universities could drive innovation across multiple disciplines.

Inclusivity and Language-Based Learning

Sujatha Kshirsagar, President, Career Launcher, and Alison Barrett, MBE, Country Director India, British Council, praised the Bharatiya Bhasha Pustak Scheme for fostering inclusive learning. Providing digital access to regional language books will bridge the urban-rural educational divide and enhance subject comprehension.

Healthcare & Medical Education

The expansion of medical education, with a planned increase of 75,000 seats over five years, has been well received by industry experts, including Husien Dohadwalla, Co-CEO, Crimson Schools. This will not only address the shortage of healthcare professionals but also enhance India’s medical research capabilities.

Economic and Taxation Reforms Impacting Education

Abhishek Mohan Gupta, Founder of Shrewsbury International School India, emphasized the positive impact of income tax reductions on household spending and investment in private education. Similarly, Amit Goyal, Regional Managing Director, South Asia – PMI, noted that increased disposable income could drive higher participation in upskilling programs and professional certifications.

Quotes:

• Dr. Prof Anand Achari, Principal, VES College of Architecture: The budget emphasis on hands-on learning bridges the gap between academia and industry, ensuring students acquire real-world skills.
• Anshuman Das, CEO of Careernet: The budget promotes Global Capability Centers (GCCs) in Tier-2 cities, creating diverse employment opportunities and bridging the urban-rural talent gap.
• Dr. Anunaya Chaubey, Provost, Anant National University: The budget introduces significant initiatives for education, such as establishing National Centres of Excellence for Skilling and adding broadband connectivity in all government secondary schools. Creating a Centre of Excellence for AI encourages industry-HEI collaboration and provides practical knowledge.
• Ravichandran V, Chairperson and Trustee at eVidyaloka: Although education funding has been increasing, it remains insufficient given the country’s needs.
• Kadwin Pillai, Managing Director, Transworld Educare and Chairman, Kings International Medical Academy: A significant increase in medical education seats aims to create more qualified medical professionals, boosting India’s position as a medical hub and promoting medical tourism.
• Dr. K. S Nagabhushana, Director – Research, Prayoga Institute of Education Research: The budget promotes accessibility to education and innovation through 50,000 Atal Tinkering Labs and 10,000 fellowships under the PM Research Fellowship Scheme. Establishment of Centers of Excellence in AI and the Bharatiya Bhasha Pustak Scheme fosters better learning and growth in STEM education. However, more support for teacher training programs and resource development is needed.
• Electronics Sector Skills Council of India (ESSCI): Strengthening the domestic electronics manufacturing ecosystem and supporting GCCs in Tier-2 cities will boost job creation, skill development, and innovation. The introduction of the ‘Bharat Trade Net’ digital platform will streamline export documentation, enhancing global competitiveness. Establishment of National Centres of Excellence for Skilling will equip the workforce for advanced manufacturing.

Prashant Jain (CEO, Oswaal Books): AI, skilling, and medical education initiatives are promising. Stronger investment in primary and secondary education is essential for long-term national growth.

Niru Agarwal (Managing Trustee, Greenwood High International School, Bangalore) Focus on child nutrition and digital textbooks will improve learning outcomes. Atal Tinkering Labs and AI Centres will enhance practical learning and global job readiness.Broadband in secondary schools will improve education accessibility.

Nidheesh Saxena (Senior Education Professional) : Expansion of medical seats and Atal Tinkering Labs will boost STEM education. More infrastructure investment and tax relief for education loans are needed. The budget is positive but could have provided greater support.

Shweta Sastri (MD, Canadian International School, Bangalore): The budget strengthens education through Atal Tinkering Labs, AI Centres, and broadband expansion. Education loan interest rate reduction will ease financial strain.Increased IIT and medical seats will boost STEM education and global competitiveness.

Vinay Singh (CEO, Thomson Digital and Q&I) : AI will bridge learning gaps and enhance student engagement.

Neeraj Kansal (Founder & CEO, Crack Academy): AI Centres will integrate AI into education, benefiting rural schools. Bharatiya Bhasha Pustak Scheme will promote digital Indian language books.

Atul Temurnikar (Chairman & Co-Founder, Global Schools Foundation): Budget focuses on education infrastructure, medical and IIT seat expansion, and Atal Tinkering Labs.

Dr. Maithili Tambe (CEO, The Academy School, Pune): 50,000 Atal Tinkering Labs will enhance hands-on learning in STEM fields. Broadband in classrooms will bridge the digital divide and improve education accessibility.

Shaheen Mistri (Founder & CEO, Teach For India): Digital learning expansion and Bharatiya Bhasha Pustak plan will improve access to education. More investment in school leadership and infrastructure is needed for holistic education.

Ashish Kumar (Founder & Director, Tutela Prep): More policies needed to enhance global education access, scholarships, and study-abroad support.

Vaibhav Shastri (Co-Founder, eduXLL): Increased funding will drive digital learning and skill development.

P.K. Samal (Founder, K12 Schools & Eduglobal Tutions): AI, broadband, and multilingual education initiatives will improve accessibility. Tax relief for parents will support investment in children’s education.

Bhawna Tandon (Academic Director, American Eduglobal School): 50,000 Atal Tinkering Labs will enhance practical learning and innovation.

Sonali Chowdhry (CEO, Officenet): National Centres of Excellence in Skilling will boost workforce training. MSME support and gig worker protections strengthen economic growth.

Anshuman Das (CEO, Careernet): National framework for Global Capability Centers (GCCs) in Tier-2 cities will boost employment. Domestic electronics manufacturing will enhance India’s role as a global talent hub.

Arundhati Bhattacharya (Chairperson & CEO, Salesforce India): The budget advances AI, digital infrastructure, and workforce skilling, positioning India as a global tech leader. AI, deep-tech funding, and skilling initiatives will drive innovation and employment.

Shantanu Prakash (Founder, The Millennium Group of Schools): ₹500 crore allocated for AI in education aligns with the school’s focus on AI-driven learning.

Tarandeep Singh Sekhon (CBO, KidZania India): The budget strengthens experiential learning, skill development, and digital education. Public-private partnerships will expand edutainment, making learning more engaging.

• Naman Jain (Vice Chairman, Silverline Prestige School): 50,000 Atal Tinkering Labs foster innovation in government schools. Affordable digitization and teacher training programs will improve learning outcomes.
• Lina Ashar (Founder, Dreamtime Learning): Digital resources in Indian languages will make education more inclusive. The curriculum needs modernization to align with future workforce needs.
• Bharath Visweswariah (ED, British Asian Trust) Budget supports early learning, digital access, and skilling. Innovative financing is needed to ensure long-term impact.
• Kadwin Pillai (MD, Transworld Educare & Chairman, Kings International Medical Academy): More facilities for medical training will boost India’s role in global medical tourism.
• Srinivasa Addepalli (Founder & CEO, GlobalGyan Leadership Academy): Focus on skilling, MSMEs, and workforce development will drive employment and innovation. National Centres of Excellence in Skilling will ensure a future-ready workforce.
• Aarul Malaviya (Founder, Zamit): ₹20,000 crore for private-sector research will strengthen India’s innovation ecosystem. AI, edtech, and digital learning will benefit from new funding and research fellowships.

Monica Malhotra Kandhari (MD, Aasoka, MBD Group): The budget strengthens education with 50,000 Atal Tinkering Labs, broadband in schools, and AI integration. ₹20,000 crore for private research and ₹10,000 crore for startups will drive entrepreneurship and deep-tech.

Sujatha Kshirsagar (President, Career Launcher) AI-driven education, tinkering labs, and broadband expansion will enhance digital learning. AI adoption will bridge skill gaps, making students globally competitive.

Waseem Javed (Founder & CEO, EduVib): 50,000 Atal Tinkering Labs will foster innovation in government schools. AI Centres and digital language books will enhance India’s global education standing.

Veerasundar V (CFO, Simplilearn) : Five National Centres for Skilling will equip youth with industry-relevant skills. AI Centre of Excellence and IIT expansions will strengthen India’s global AI ecosystem.

Abhijit Zaveri (Founder & Director, Career Mosaic) Removing TCS on education loans will ease studying abroad. Global skilling partnerships will align education with job market demands.

Sripal Jain (Co-Founder, Simandhar Education)  Raising the tax-free slab to ₹12 lakh will help professionals invest in upskilling. AI and digital learning initiatives will build a globally competitive workforce.

Prof. V. Ramgopal Rao (VC, BITS Pilani): Budget expands IITs, AI Centres, and medical seats, strengthening R&D and skilling.

Dr. Raj Singh (Spokesperson, JAIN Online & VC, JAIN University) : DeepTech Fund, research fellowships, and skilling initiatives will enhance India’s innovation ecosystem.

Fr. Dr. K.S. Casimir: AI Centre of Excellence will boost digital learning and innovation.

Gaurav Shah (Co-founder, Indian School of Development Management): National Centres for Skilling will equip youth, but social sector involvement is key for accessibility.

Sachin Alug (CEO, NLB Services): Budget supports job creation, GCC growth, and AI-driven education, but vocational training needs more focus.

Dr. Venkat Rangan (VC, Amrita Vishwa Vidyapeetham): AI Centres, Atal Labs, and skilling initiatives will shape India’s education and healthcare future.

Sowjanya Kanuri (Director, ACT For Education): Investments in Atal Labs and AI Centres will enhance foundational skills.

Dr. Tom M Joseph (Co-founder, USDC Global): AI education and skilling initiatives will enhance workforce readiness.

Aditya Jangid (MD, AdCounty Media): DeepTech Fund and PM Research Fellowships will foster innovation and global research leadership.

Kanwal Jeet Jawa (President, DESDS, DJIME): Skilling partnerships and AI Centres will prepare India’s workforce for global industries.

Udit Yadav (Founder & Director, Satan Digital): budget supports AI in education and workforce skilling.

Sumit Kumar (Chief Strategy Officer, TeamLease Degree Apprenticeship): Budget boosts manufacturing, skilling, and education, ensuring global workforce readiness.

Chocko Valliappa (Vice Chairman, Sona College of Technology & CEO, Vee Technologies): AI Centres should focus on reskilling to offset job losses from AI adoption. Private institutions excelling in AI and tech should be granted autonomy to expand capacity faster than IITs.

Prof. Radhika Shrivastava (Executive Director, FIIB): AI Centres and global skilling partnerships will reshape management education.Expanding IITs and advanced learning environments will equip students for global careers.

Vinay Kumar Swamy (Country Head, Pearson India): AI-driven skilling and digital learning initiatives will prepare India’s workforce for global opportunities.Broadband expansion and multilingual digital content will make education more inclusive.

Dr. B. Priestly Shan (Vice-Chancellor, Alliance University): AI Centres, skilling hubs, and digital language books will boost education. Removing TCS on education loans eases studying abroad; medical seats expansion strengthens healthcare.

Md. Sajid Khan (Director-India, ACCA): AI and skilling Centres must integrate financial literacy and real-world skills. MSMEs need financial education to sustain growth in an AI-driven economy.

Rajeev Tiwari (Co-Founder, STEMROBO Technologies): 50,000 Atal Labs and broadband expansion will drive innovation and digital equity. AI Centres and MSME credit support will foster entrepreneurship in EdTech.

Kunal Vasudeva (Co-founder, Indian School of Hospitality): AI in education, skilling, and deep-tech funding will position India as a knowledge economy. Policy execution and institutional accountability are crucial for success.

Nipun Goenka (MD, GD Goenka Group): AI Centres, IIT expansion, and Atal Labs will democratize innovation and digital access. Holistic development initiatives like Poshan 2.0 and digital language books promote inclusive education.

Shishir Jaipuria (Chairman, Seth Anandram Jaipuria Group): AI, skilling, and research fellowships will drive educational innovation. Budget aligns with NEP 2020 and Viksit Bharat’s vision.

Anushika Jain (Founder & CEO, Global Shala & Globally Recruit): AI education and global skilling partnerships will enhance India’s talent competitiveness.Workforce resilience and adaptability are key to global job market success.

Tr. Chaitanya Dev Singh (National President, RTI): Atal Labs, broadband, and vernacular digital content will improve education quality. Expanding IIT/medical seats will provide more opportunities for students.

Kanak Gupta (Group Director, MR Jaipuria Group): AI Centres, Atal Labs, and digital language books will advance education accessibility and inclusivity.Tech-driven learning will make India a global education leader.

Tannay Jit Singh (Founder, Kladio):  50,000 Atal Labs, AI Centre, and IIT expansion will boost education.10,000 new medical seats and DeepTech Fund will drive research and innovation.TCS removal on education loans eases financial burden for students.

Preethi Rajeev Nair (Principal, Lancers Army School): Atal Labs, broadband, and AI Centres will enhance digital learning and STEM education.

Prof. Indranil Manna (VC, BIT Mesra):  AI Centre will drive research; IIT expansion strengthens tech education. More focus needed on private institutions to boost research capacity.

CA Bikram Agarwal (CFO, Seth Anandram Jaipuria Group) : GST burden on education institutions remains unaddressed.

Raj Singhal (Co-founder & CEO, Footprints Childcare) AI Centres will improve learning; tax cuts will boost disposable income and spending.

Anish Shah (CFO, Zee Learn Ltd.): Atal Labs, AI Centres, and broadband expansion will democratize education. K-12 education loans should be subsidized to support Viksit Bharat vision.

Vinesh Menon (DG & CEO, ARISE): Budget prioritizes quality education, digital infrastructure, and skill development.

Chandrashekhar Sripada (CEO & Professor, ISB): Skilling Centres must create jobs alongside automation to be effective.

Waseem Javed (Founder & CEO, EduVib): AI Centres and Atal Labs will boost EdTech and global learning opportunities.

Sujatha Kshirsagar (President, Career Launcher): AI-driven education and skilling will enhance India’s global competitiveness.

Amit Goyal (MD, PMI South Asia): AI Centres and PM Research Fellowships will strengthen India’s workforce. Infrastructure and sustainability initiatives align with self-reliance goals.

Abhishek Mohan Gupta (Founder, Shrewsbury International School India): AI Centres, skilling, and digital education will create future-ready graduates.

Dr. Partha Chatterjee (Dean, Shiv Nadar University): Budget boosts MSMEs, deep-tech, and research but lacks wider reforms.

Husien Dohadwalla (Co-CEO, Crimson Schools):  AI, skilling Centres, and medical seat expansion will improve STEM education.

Alison Barrett (Country Director, British Council): AI, IIT expansion, and regional language learning will strengthen India’s education system.

Anish Srikrishna (CEO, TimesPro): AI, skilling, and research fellowships will position India as a global education leader.

Pankaj Jha (MD, MAXHUB India): AI Centres will drive interactive and technology-driven learning.

Amit Bhalla (VP, Manav Rachna Educational Institutions): Budget should offer more tax incentives for startups and increase research funding.

Sukanta Parida (Director, Centurion University): Broadband expansion and AI Centres will modernize education and healthcare.