India Budget 2026 Education Expectations: Affordable Learning, Skills Training & Industry Partnerships

As India prepares for Union Budget 2026, education experts urge the government to move beyond infrastructure and enrolment numbers. They want policies focused on quality teaching, skills-based higher education, industry partnerships, and affordability, especially for youth in smaller towns and rural areas. The goal: transform India’s demographic dividend into a future-ready workforce.

Education Sector Wants from Budget 2026: Quality, Skills, and Jobs

Shift Focus from Scale to Quality

Sandeep Rai, Founder of The Circle, emphasizes that Budget 2026 should be seen as a long-term investment in India’s future, not just an expense.

• “The 2026 national education budget is an opportunity to continue shaping the future of India and unlocking our demographic dividend,” Rai says.

• He stresses that India needs to move away from merely expanding infrastructure and enrolment and instead invest in initiatives that drive quality educational outcomes.

• Rai highlights three priorities:

  1. Better teacher recruitment and training

  2. Public–private partnerships for model schools

  3. Stronger industry–school links

“We have to see this year’s budget as a strategic investment in the future of India’s youth, not merely a cost,” he adds.

Skills-Based Higher Education in Focus

Supriya Pattanayak, Vice Chancellor of Centurion University, Odisha, urges the government to prioritize skills-embedded higher education in Budget 2026.

• “To fully capitalise on India’s demographic advantage and become the global skills capital, Budget 2026 must make skills-embedded higher education the foundation of nation building,” she says.

• Pattanayak calls for a 20% increase in funding, or at least ₹10,000 crore, to set up AI-powered, industry-linked labs in 500 Tier 2 and Tier 3 institutions.

• These labs would help universities expand hands-on training in areas like deep technology, climate-resilient agriculture, and health sciences.

• She also recommends stronger industry–academia partnerships, suggesting tax incentives and a simpler CSR route, which could free up about ₹5,000 crore annually for structured apprenticeships, especially benefiting rural and first-generation learners.

Making Education Affordable and Future-Ready

Ashish Munjal, Co-founder and CEO of SUNSTONE, sees Budget 2026 as an opportunity to prepare India’s youth for future jobs.

• He emphasizes higher spending on project-based programs in emerging technologies such as AI, data science, and digital learning platforms.

• Affordability remains a major concern for millions of students in Tier 2 and Tier 3 cities. Munjal suggests interest-free or subsidized education loans and a larger scholarship pool.

• He also recommends treating learning like a long-term necessity, akin to health insurance.

“We need to provide incentives through employer-sponsored learning credits,” Munjal says, adding that it would improve employability and support lifelong learning.

Key Takeaways from the Education Sector

The education sector wants Budget 2026 policies that:

• Improve teacher quality

• Build practical skills in students

• Support innovation and industry collaboration

• Make education more affordable and accessible

If implemented well, these steps can close skill gaps, boost employment, and strengthen India’s economy, turning the country’s youth advantage into a long-term growth engine.