Union Budget 2025: Digital, AI, and Funding Boost for Education
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Education comes in for a special mention in the Union Budget 2025-26 with substantial investments geared toward making school education, digital infrastructure, and skill development strongholds. Priority projects will see money flowing in for foundational learning, broadband access for rural schools, AI-based learning hubs, as well as enhanced support for research and innovation. Industry stalwarts and education experts embraced these moves, saying that they have the potential to bridge the digital divide, empower teachers, and provide access to quality education across India, Here’s what the Budget has to say about the impact on the education sector, according to them.
Sumeet Mehta, CEO and Co – Founder , LEAD Group
It’s heartening to see that 61% of the total education budget has been allocated to school education — a rare and commendable step towards strengthening foundational learning. The budget takes important strides in bridging the digital divide by prioritising broadband in rural areas, ensuring access to digital education for all. With a focus on digital initiatives like e-books and multilingual resources, it aims to create a more inclusive, future-ready education system. Furthermore, it recognises the need for upskilling teachers to integrate digital tools effectively. However, while government schools will see significant benefits, private schools may experience limited direct impact.
Joyshree Das Verma, National President, FICCI FLO
As we analyze the proposed measures in the Union Budget, we applaud the government’s focus on empowering the less-recognized segments of our society, particularly women and marginalized communities. The introduction of term loans for 5 lakh women from SC/ST communities is a commendable step toward financial inclusion, providing critical resources for entrepreneurship. The Saksham Anganwadi and Poshan 2.0 programs will significantly improve nutrition for vulnerable children, mothers, and adolescent girls, laying the foundation for healthier future generations. The scheme for first-time entrepreneurs, especially women, SC/STs, presents immense potential for fostering innovation and economic growth. This budget reflects the government’s commitment to building an inclusive, self-reliant India, and at FICCI FLO, we are eager to collaborate in turning these initiatives into impactful successes. The Budget also offers strong support for MSMEs, with enhanced credit availability, new credit cards for micro-enterprises, and schemes to foster growth and job creation in labor-intensive sectors like footwear, toys, and food processing.
Dr Prakash Lulla, Treasurer, Vivekanand Education Society
The Union Budget 2025 takes a big step towards reshaping India’s education sector. We’re excited to see key initiatives like broadband for all government schools and more seats in medical colleges. These moves will help make education more accessible and inclusive. We’re especially excited about the new ‘Centre of Excellence’ in Artificial Intelligence for education. AI has huge potential to change the way we learn, and it’s great to see this bold move. Removing TCS on overseas education payments will also make it easier for students to study abroad. We’re committed to supporting these initiatives and help shaping a brighter future for India’s students.”
Dr Venkat Rangan, Vice-Chancellor, Amrita Vishwa Vidyapeetham
The Union Budget announced by the FM takes a thoughtful and future-focused approach, prioritizing education, skilling, and innovation as key drivers of growth. The emphasis on expanding access to quality education, strengthening research capabilities, and fostering scientific thinking through initiatives like Atal Tinkering Labs, AI excellence centres, and national skilling hubs will play a transformative role in shaping India’s future. The addition of 75,000 undergraduate medical seats over the next five years will significantly strengthen healthcare education and accessibility. The Bharatiya Bhasha Pustak Scheme is a commendable step towards inclusive and accessible learning. At Amrita University, we welcome these progressive measures and look forward to aligning with the nation’s vision, working collaboratively with the government to drive impactful change in higher education, healthcare, and research and development.”
Preeti Bhandary, Co-Founder and Director Curriculum
The Union Budget 2025 presents exciting opportunities for the education and preschool sector, with a focus on expanding digital infrastructure and ensuring financial inclusion. The Rs 10.18 lakh crore capital expenditure allocation will help improve access to education, allowing platforms like Little Elly to extend our reach. The emphasis on digital learning tools and e-learning platforms will enhance early childhood education, making it more accessible across urban and rural areas.
The budget’s focus on mental and emotional well-being, inclusive education, and 50,000 new Atal Tinkering Labs aligns with Little Elly’s approach to nurturing both academic and emotional development in young children. With 80-100 new centres planned in cities like Bangalore, Chennai, and Pune, these initiatives will support our mission to foster holistic development. The government’s commitment to nutrition through Poshan 2.0 and expanded broadband connectivity will further strengthen our ability to deliver quality education to a wider audience.
Additionally, the focus on sustainability, eco-friendly practices, and green technologies aligns with our ‘Earth Lab’ initiative, which is aimed at fostering environmental responsibility. These measures will empower us to create responsible, mindful learners, preparing them for a future of success and sustainability.
Vaibhav Shastri, Co-Founder, eduXLL
Union Budget 2025’s historic allocation of Rs 1,28,650.05 crore for education, alongside the expansion of IITs and medical seats, opens up incredible opportunities for students across India. At eduXLL, we are excited about the government’s focus on enhancing digital learning and providing students with the tools they need to succeed in a fast-evolving world. This boost in funding for higher education will help shape a new era of innovation and skill development, enabling students to unlock their full potential through accessible online education.
P.K. Samal, Founder, K12 Schools & Eduglobal Tutions
As an advocate for digital learning, I am thrilled to see the Union Budget 2025’s strong push toward integrating AI, broadband connectivity, and multilingual resources in education. At K12 Schools & Eduglobal Tutions, we have always believed in the power of technology to break barriers and with these transformative steps, we are excited to be a part of India’s journey toward making quality education accessible to every learner, no matter where they are. Additionally, the government’s decision to increase the personal income tax threshold to Rs 12 lakh and introduce new tax brackets will provide significant relief to parents, enabling them to invest more in their children’s education and empower the next generation with the skills they need to succeed.
Bhawna Tandon, Academic Director, American Eduglobal School
The Union Budget 2025’s allocation of Rs 1,28,650.05 crore for education, a 6.65% increase from last year and the creation of 50,000 Atal Tinkering Labs marks a major step in strengthening India’s education system. At American Eduglobal School, we are excited about these advancements. This initiative aligns perfectly with our mission to offer students hands-on learning experiences that prepare them for global challenges. We look forward to contributing to the vision of a robust and forward-thinking education system.
