Budget 2025 Focuses On Digital, AI-Driven Education, Skilling For Global Workforce

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, focuses on education, skill development, and research to prepare India's youth for the future job market. With strategic investments in AI, digital literacy, and higher education infrastructure, the budget aims to enhance global competitiveness.

AI Integration And Digital Expansion

Rahul Subramaniam, Co-founder of Athena Education, commended the Rs 500 crore allocation for Centres of Excellence in Artificial Intelligence, describing it as a "forward-thinking roadmap for education." 

He further emphasised that the budget's focus on accessibility, skill development, and technological integration demonstrates a commitment to equipping students with future-ready skills. Expanding IITs and medical colleges will enhance both quality and capacity, positioning education as a key driver of national progress.

"The 2025 Union Budget presents a forward-thinking roadmap for India's education sector, emphasizing accessibility, skill development, and technological integration. A Rs 500 crore allocation towards Centres of Excellence in Artificial Intelligence underscores the commitment to equipping students with future-ready skills. Expanding IITs and medical colleges aims to enhance both quality and capacity, ensuring that education remains a powerful driver of national progress," he said.

Building A Skilled Workforce For Global Opportunities

The creation of five National Centres of Excellence for Skilling, along with a 6,500-seat expansion in IITs, aims to bridge skill gaps and raise vocational training standards. Additionally, the 10,000 scholarships under the PM Research Fellowship will cultivate a tech-savvy workforce aligned with global demands.

Rs 500 Crore allocation For AI In Education

The budget's Rs 500 crore allocation for AI in education is India's first major step to integrate generative AI into its learning ecosystem. These initiatives position educational institutions as hubs for research and development, moving beyond traditional degree providers.

Ramani Dathi, Director of TeamLease HCM, noted that the budget aims to bridge the gap between technological advancements and workforce readiness through initiatives like the National Digital Skill Development Mission and AI-driven education platforms.

"Through the union budget 2025-26, the government has emphasised strategic focus on skilled workforce capable of thriving in an AI-driven economy and world of work. It is aiming to bridge the gap between technological advancements and the readiness of workforce through National Digital Skill Development Mission, AI driven education platforms, automation skill training and incentives for private sector partnerships," he said.

Empowering Global Student Mobility

Saurabh Arora, Founder & CEO of University Living, described the budget as transformative for India's student community, particularly the revisions to the Tax Collected at Source (TCS) under the Liberalised Remittance Scheme (LRS). 

"The Union Budget 2025-26 is a transformative step toward empowering India's student community and enhancing global student mobility. The government's revisions to the Tax Collected at Source (TCS) system under the Liberalized Remittance Scheme (LRS) will significantly ease the financial burden on families. With over 1.3 million Indian students contributing more than US$60 billion in outward remittances, the increase in the TCS threshold from Rs 7 lakh to Rs 10 lakh is a clear recognition of the financial challenges families face. The removal of TCS on remittances funded through education loans is a welcome move, ensuring financial constraints no longer hinder access to world-class education".

Piyush Kumar, Regional Director at IDP Education, also praised the removal of TCS on education-related remittances funded through loans, calling it a significant step in easing financial barriers for students aspiring to study abroad.

"The removal of TCS, on education-related remittances funded through loans is a particularly commendable step, easing financial barriers for students aspiring to study abroad. This forward-thinking approach ensures that India's youth have access to the best opportunities, both within the country and globally," he said.