New Delhi: The Union Budget 2026, scheduled for February 1, 2026, has raised expectations in the education sector across India. Experts are analyzing how much India currently spends on education, why the 2026 budget could be a game-changer for the sector, and what reforms and investments are anticipated.
Education Budget 2026: Focus on Skills
According to experts, education can no longer be limited to textbook knowledge alone. In today’s rapidly evolving job market, skill development has become crucial. The 2026 budget is expected to promote new skill-based courses, modern laboratories, and updated infrastructure to align education with industry needs. Experts also emphasize the importance of improving resources such as faculty, study materials, and institutional infrastructure for promoting education in regional languages.
Expert Opinions
“Global demand for Indian talent is increasing. The government is focusing on reforms through the Higher Education Commission Bill to strengthen collaborations between Indian and foreign institutions. Joint research initiatives between domestic and international students are also encouraged. The 2026 budget is likely to be a turning point for significant reforms in the education sector,” said Professor KK Agrawal, President, South Asian University.
Current Education Expenditure in India
Experts note that many developed countries allocate 6–10% of their GDP to education, whereas India currently spends 4–5% of its GDP. Increasing investment is critical for India to become a global hub for education. The budget may also outline measures to increase school and university enrollment and reduce dropout rates.
Education Budget Trends in Recent Years
| Year | Budget Allocation (₹ Crore) |
|---|---|
| 2025 | School Education: 78,572; Higher Education: 50,077; Total: 1,28,649 |
| 2024 | School Education & Literacy: 73,498; Higher Education: 47,619.77; Total: 1,21,118 |
| 2023 | Ministry of Education: 1,12,899.47; School Education & Literacy: 68,804.85; Higher Education: 44,094.62 |
Expanding Seats and Industry-Linked Courses
Experts stress that institutions like IITs and IIMs must increase their intake to accommodate rising applications. There is also a growing demand for Industry 4.0 courses, including AI, Machine Learning, Cloud Computing, Data Analytics, Advanced Manufacturing, Smart Agriculture (Agriculture 2.0), Robotics, Automation, Blockchain, Cybersecurity, MCA, MBA, personality development, soft skills, and financial management. Budget allocations are expected to support vocational training, internships, and corporate collaboration for skill development.
Linking Education to Employment
Educationist SK Gupta emphasizes that the current government aims to link education directly with employment. To achieve this, increased funding is essential. Investments in smart classrooms, AI-enabled learning platforms, digital libraries, and modern laboratories are likely to accelerate under the 2026 budget.
As the nation awaits the February 1 budget announcement, education experts, policymakers, and institutions are keenly watching for increased allocations and reforms that can transform India into a global educational hub.
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