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Significant decisions have been taken for the Education Sector in the Union Budget 2026-27. The government has allocated budgetary provisions for education, employment and skill development, prioritizing emerging technologies, artificial intelligence, skill development and medical education. Additionally, the opening of girls’ hostels in every district of the country has been announced.
The Modi government presented its 15th Union Budget, which is Finance Minister Nirmala Sitharaman’s ninth consecutive budget. In this budget, medical education has been recognized as a priority area. Alongside, a major announcement has been made to open girls’ hostels in every district. Provisions have also been made to establish corporate partnerships in Tier-2 and Tier-3 towns, providing professional institutions with better facilities and training.
Nirmala Sitharaman described this budget as a "Youth-Powered Budget." She added that this is the first budget prepared at the Kartavya Bhawan. Emphasizing the need for cutting-edge technology, the Finance Minister stated that artificial intelligence (AI) will help advance the country. She also highlighted that the government is working towards generating employment and enhancing productivity.
Major Announcements in Budget 2026:
- Girls’ hostels will be opened in every district.
- Three new Ayurveda colleges will be opened.
- A National Institute of Hospitality will be established.
- Three new pharmaceutical education institutes will be established.
- Five university townships will be set up near major industrial and logistics corridors.
- A plan will be launched to enhance the skills of 10,000 guides at 20 major tourist destinations.
- IIT Mumbai will assist in setting up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges.
Budget 2026: Major Steps in Education and Skill Development
Higher Education: Girls’ hostels will be set up in every district. Education and skill-based learning will be promoted in higher education institutions. The Krishnamurthy Tandon School of Artificial Intelligence will be established at IIM Ahmedabad. The budget 2026 emphasizes women’s empowerment, giving special focus to girls’ education and skill development.
Secondary and Skill Education: Skill development facilities will be provided in secondary schools to make youth employable. Students will be trained according to the needs of the service sector and industry.
Startups and Innovation: The India AI Impact Summit 2026 will provide a platform for startups for business networking and exhibitions. Innovation in media, entertainment and AI sectors will be promoted through WaveX and other national platforms.
Making several key announcements for academic development, Finance Minister Nirmala Sitharaman said that students and youth participation in AI, emerging technologies and digital education will be increased. Practical experience and research will be encouraged through collaboration between industry and academic institutions. The Finance Minister further added, “We will launch India Semiconductor Mission 2.0, and also focus on industry-led research and training centers to develop technology and a skilled workforce.”
