The Union Budget 2025 has placed significant emphasis on education and skilling, positioning them as key investment areas rather than mere expenditures. With a total allocation of ₹1.28 lakh crore, the budget aims to strengthen foundational learning, enhance digital infrastructure, and integrate artificial intelligence (AI) into education.

Amitabh Jhingan, Partner at EY-Parthenon India and EY Global Education Sector Leader, highlighted the budget’s transformative approach: “Budget 2025 has called out Education and Skilling as a key area of Investment rather than Expenditure which recognises the transformative potential of human capital in India. Announcements around strengthening the Anganwadi programme and Poshan 2.0, expanding capacity of IITs and Medical colleges, setting up world-class skilling centres and creating a centre of excellence for AI in Education provide a balanced approach towards transforming education in India.”
AI and Emerging Technologies in Education
The budget’s commitment to AI in education marks a crucial step towards modernising learning methodologies. The government has allocated ₹500 crore to establish a Centre of Excellence for AI in Education, ensuring students and teachers benefit from advanced technological tools.

Raj Ramachandran, Partner at JSA Advocates & Solicitors, remarked: “Education is the touchstone for development, and a blend with AI can transform information into knowledge. The budget proposes setting up a Centre of Excellence on AI in the education sector with an outlay of ₹500 crores. This timely move will significantly improve the quality of education and learning, allowing a more personalised approach instead of a one-size-fits-all model.”
Focus on Skilling and Job Readiness
Recognising the rapidly evolving job market, the government has introduced initiatives to enhance youth employability through skilling programmes. The establishment of five National Centres of Excellence for Skilling, with global expertise and partnerships, will prepare students for industry demands.

Nikhil Barshikar, Founder & CEO of Imarticus Learning, welcomed the move: “The Finance Minister has unveiled several initiatives to empower youth with skilling opportunities, working towards job creation. The establishment of five National Centres of Excellence for skilling will expand access to quality skilling programmes and equip our youth with the skills needed to meet evolving industry demands.”
Additionally, the BharatNet broadband expansion project will support digital skilling by improving internet access in rural areas, further strengthening digital literacy.
A Step Towards ‘Viksit Bharat’

The Union Budget 2025 reflects a comprehensive vision for a future-ready education system, addressing digital inclusion, AI-driven learning, and skilling initiatives. By aligning education policies with industry needs and technological advancements, India moves closer to realising the vision of ‘Viksit Bharat’—a knowledge-driven and globally competitive nation.
Jairam Balakrishnan, CEO of Globeducate India, summed it up: “The Union Budget 2025-26 reinforces the government’s commitment to a future-ready education system by expanding access, strengthening skilling initiatives, and integrating technology into learning. We look forward to supporting these initiatives and contributing to the vision of a knowledge-driven ‘Viksit Bharat’.”