The Union Budget 2025 has placed a strong emphasis on Artificial Intelligence (AI) in education, marking a pivotal shift in India’s learning ecosystem. A major highlight is the establishment of a Centre of Excellence in Artificial Intelligence for Education, with an allocation of ₹500 crore. This initiative aims to personalise learning, bridge accessibility gaps, and create new opportunities for skill-based training.

Mr. Deepak Ravindran, Co-founder & CEO of KiranaPro, hailed this move, stating: “We wholeheartedly welcome the government’s initiative to establish a Centre of Excellence in AI for Education. This is a significant step toward positioning India as a global leader in AI-driven learning and skill development. With India’s vast student population and growing digital infrastructure, leveraging AI in education can enhance learning outcomes at scale and prepare the workforce for the jobs of the future.”
Strengthening Research and Innovation
The budget has earmarked ₹20,000 crore for private-sector-driven R&D, along with a Deep Tech Fund of Funds, to accelerate innovation. Additionally, the government is setting up five National Centres of Excellence for skilling, ensuring that education aligns with industry needs and future job demands.

Speaking on the broader implications of these initiatives, Ram Ramalingam, Founder & CMO of GeniusMentor, stated: “Budget 2025 presents a promising roadmap for India’s economic and technological future. However, challenges lie in execution—past initiatives have faced delays and inefficiencies. The success of AI-driven education and startup funding will depend on regulatory clarity and seamless disbursement.”
Boosting Digital Connectivity in Education
Recognising the need for enhanced digital infrastructure, the government has prioritised broadband connectivity in rural schools and Primary Healthcare Centres (PHCs). This measure aims to improve digital inclusivity and ensure equitable access to quality education and healthcare services.
Supporting Startups and Inclusive Entrepreneurship
To further boost entrepreneurship, Budget 2025 introduces a startup credit ecosystem, providing financial support to first-time entrepreneurs, particularly women and individuals from marginalised communities. A key provision is the ₹2 crore loan initiative for women entrepreneurs, designed to promote new ventures and diversify the education sector.

Commenting on this, Mridu Andotra, Founder & CEO of GeniusMentor, noted: “The expansion of IITs and the creation of a Centre of Excellence in AI for education reflect a vision aimed at equipping students with cutting-edge skills. The ₹2 crore loan initiative for women entrepreneurs promises to encourage new ventures and diversify the education sector. While these initiatives hold great potential, their success hinges on efficient fund allocation and effective execution.”
The Road Ahead
With technology, education, and entrepreneurship at the heart of Budget 2025, the government has laid a strong foundation for India’s transition into a global knowledge and innovation hub. However, the effectiveness of these policies will depend on their seamless implementation and timely execution.