In a significant boost to the education sector, the Union Budget 2026-27 allocates ₹1,39,285.95 crore, surpassing last year's allocation of ₹1,28,650.05 crore. This increased investment signals the government's commitment to strengthening foundational learning, expanding access to education, and improving the quality of higher education institutions.
The budget earmarks ₹83,562.26 crore for school education and literacy, and ₹55,727.22 crore for the Department of Higher Education. This substantial outlay for school education aims to support the implementation of the National Education Policy (NEP), strengthen the Samagra Shiksha Abhiyan, improve digital infrastructure in government schools, and enhance foundational learning outcomes.
Several key announcements were made by Finance Minister Nirmala Sitharaman during her budget presentation. A significant initiative is the establishment of five university townships near major industrial and logistics hubs across the country. This move is designed to foster stronger industry-academia collaborations and cultivate skilled talent in emerging growth sectors. Further, to promote women's education and safety, the government plans to establish at least one girls' hostel in every district. To boost creative, digital, and media-related skills among students, the budget proposes support for the Indian Institute of Creative Technologies (IICT), Mumbai, to set up content labs in 15,000 secondary schools.
The budget emphasizes skill development and employability through various initiatives. A new committee will be formed to connect education with jobs and businesses, with a focus on integrating artificial intelligence into learning. Furthermore, the Finance Minister proposed setting up three new National Institutes of Pharmaceutical Education and Research (NIPER) and upgrading seven existing ones. The government will also create a network of 1,000 accredited India clinical trials sites. To strengthen skill-career pathways, particularly in healthcare, selected higher education institutions will receive support to train one lakh allied health professionals.
In higher education, the budget reflects a mixed funding trend. While the Indian Institutes of Technology (IITs) have received an increased allocation of ₹12,123 crore, up from ₹11,349 crore in 2025-26, some institutions like the Indian Institute of Science (IISc) and Indian Institutes of Information Technology (IIITs) have seen reduced allocations. Central Universities have been allocated ₹17,740 crore, compared to ₹16,691 crore last year. The Indian Institutes of Management (IIMs) have received ₹292 crore.
Other notable proposals in the budget include establishing new Ayurveda institutes and NIMHANS 2. The Finance Minister also announced the launch of Biopharma SHAKTI, with an allocation of ₹10,000 crore over the next five years, to boost research, innovation, and skill development in India's biopharmaceutical sector. To promote environmentally sustainable movement of cargo, several measures are proposed.
Overall, the Education Budget 2026 demonstrates the government's commitment to transforming the education sector and aligning it with the needs of a rapidly evolving economy. The budget prioritizes enhanced access, improved quality, and greater emphasis on skills and innovation to empower India's youth and drive future growth.