Last Updated on February 11, 2025
The series of ₹500 crore has been earmarked by Union Budget 2025 to set up a Centre of Excellence for AI in Education to bridge the gap between education and emerging technologies. For this aim, the drive is to incorporate AI-powered learning tools that increase students’ technological fluency and problem-solving abilities and allow them to become more technologically pragmatic in a world that is becoming more and more digital.
A Visionary Budget for Education and Research
Union Finance Minister Nirmala Sitharaman, in her eighth budget presentation, announced a total allocation of ₹1.28 lakh crore for the education sector. In 2025-26, the budget for school education increased by ₹5, 564.10 crore to ₹78,572.10 crore from ₹73,008 crore in 2024-25. However, Higher Education was funded at ₹47,619 crore, which increased to ₹50,077.95 crore, the difference being at ₹ 2,458.95 crore.
Technical Education Takes Center Stage
Technical education takes a key highlight in the budget, where IITs and NITs are given an additional ₹1,370 crore to expand the infrastructure as well as research capacity. However, funding cuts to IIMs, IISERs, and Central Universities suggest a shift to the funding of engineering and technology-based institutions. In conducting early STEM education and grassroots innovation, the government is reaffirming its commitment by introducing 50,000 new Atal Tinkering Labs and broadband connectivity for secondary schools.
Skilling, AI, and Research Initiatives
The budget outlines some transformative initiatives on skilling and AI literacy to prepare students for future job markets. Five National Centers for Excellence in Skilling and a crore hundred rupees AI Center of Excellence are to be set up that will help India position itself as a key global technology hub..
“These initiatives will further improve India’s AI expertise as well as the global employability of Indian students through fostering interdisciplinary collaboration among Indians and Indian institutions,” said Dr. Somak Raychaudhury, the Vice Chancellor of Ashoka University. He also mentioned the Bharatiya Bhasha Pustak scheme that reduces the urban-rural gap in the educational process.
Expanding Opportunities for Global Education and Innovation
It also includes a budget to support the Indian students seeking global opportunity through National Centres of Excellence in AI, scholarships, and funding for research.
“Training and cutting-edge technology are the two major reasons India is in sync with the vision of ‘Make for India, Make for the World,” stated Dr. Yajulu Medury, Vice Chancellor of Mahindra University. “With these measures not only research and innovation will be boosted, but the doors will be opened to international collaborations.”
Strengthening India’s Innovation Ecosystem
This budget has also introduced higher education reforms such as the DeepTech Fund of Funds, 10,000 new PM Research Fellowships at IITs and IISc, and policy changes to ease the financing of students.
“The DeepTech Fund will help India’s research in frontier technologies, and the rise in research scholarships will help STEM students study in India,” said Dr Raj Singh, Vice Chancellor of JAIN (Deemed to be University). “Financial reforms, including the removal of TCS limits on bank-financed education, will also allow clarity and much-needed relief to the students.”
Transforming Education Through Skilling and Research
Also, the budget pitches heavily into healthcare education, with the announcement of 75,000 new undergraduate medical seats in the next five years.
Amrita Vishwa Vidyapeetham Vice Chancellor Dr. Venkat Rangan commended, “Quality education, research, investments in AI and skilling will determine the future workforce of India. Initiatives like AI excellence centers and national skilling hubs will lend impetus to India’s presence in international education.”
Conclusion: A Future-Ready Education System
The Union Budget 2025 has signaled a plan for AI skilling and research-based education, which will contribute a lot towards India’s ambition of being a global leader in the area of technology and innovation. Despite funding cuts to some institutions, the emphasis on digital learning, scholarships, and skill development ensures students are ready for future global challenges, regardless of the destination chosen by the student.
The budget, according to experts across top universities, has been tailored with forward-thinking policies that will push India into the forefront of education, research, and technology.
Bhaskarjyoti Paul is a seasoned content writer with over three years of experience within the ed-tech space. Specialising in study abroad and academic content, Bhaskarjyoti excels at creating SEO-optimized articles that drive traffic and engagement and blog and website content that engages and informs readers. Bhaskarjyoti handles social media content for Admissify, designs compelling narratives and spearheads engagement across multiple platforms. With a desire to help students and a keen eye for detail, Bhaskarjyoti brings a wealth of knowledge to every project.
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