With the Union Budget 2026 set to be unveiled on February 1st, the Indian education sector is eagerly anticipating a significant boost, particularly for EdTech and skill development initiatives. Industry leaders are advocating for increased investment in digital learning infrastructure, AI-enabled education platforms, and outcome-based skilling programs aligned with emerging technologies.
Stakeholders emphasize the need to treat education as a critical economic infrastructure, rather than simply a social expenditure, to unlock India's human capital potential and drive the nation towards its "Viksit Bharat 2047" vision. This entails bridging the gap between education and employability, ensuring quality learning opportunities reach both urban and rural areas.
A key expectation is a substantial increase in public spending on education, potentially reaching 6% of GDP, to align with the New Education Policy (NEP) 2020 recommendations. While the previous budget allocated ₹1.28 lakh crore to education, a 6.22% increase from the preceding year, it still fell short of the 6% target. Experts are calling for this to be rectified in the upcoming budget, alongside a focus on improving the quality of education, strengthening infrastructure, and aligning learning with future skill requirements.
EdTech companies are seeking specific incentives to encourage digital learning adoption. These include tax exemptions, innovation-linked incentives, and public-private partnerships. A reduction in the Goods and Services Tax (GST) on educational services, digital tools, infrastructure, and content is also highly anticipated. Furthermore, simplified access to education loans, interest subsidies, and tax benefits for students and parents are deemed crucial for making quality higher education more accessible.
The importance of skilling and vocational training is another prominent theme. With the India Skills Report 2026 indicating that only 56.35% of graduates are employable, there's a recognized need to invest in industry-aligned curricula, micro-credentials, apprenticeships, and job-linked skilling programs. Emphasis is being placed on incorporating AI into teaching to enhance critical thinking and problem-solving skills. Experts suggest that apprenticeships should be treated as mainstream education pathways, and public funding should reward sustained employment, wage growth, and employer satisfaction, rather than just certification counts.
Several voices within the education sector are advocating for stronger industry-academia collaborations through structured career pathways to improve students' job readiness. This includes building future-ready universities with a focus on India-centric research and development. Additionally, there are calls for incentives to create regional-language content to bridge the linguistic divide and ensure that quality education reaches every learner, regardless of their location.
Initiatives such as tax incentives, funding for skill-building, and infrastructure support for digital education are seen as vital for fostering a supportive environment for growth. By prioritizing inclusion and recognizing EdTech's role in enhancing access, quality, and learner outcomes, the Budget 2026 can reinforce confidence in India's human capital and pave the way for sustained productivity, innovation, and global competitiveness.
