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Budget 2026 Expectations: How AI, vocational training, creative arts can transform India’s education sector

Ahead of Budget 2026, education leaders urge stronger support for AI, digital learning, vocational training and creative arts. Experts are looking forward to bridge the employability gap and modernise curricula. Investments in skill development and cultural education is crucial for India's future workforce and global competitiveness.

Education budget 2026 expectation. (Image: Wong Yu Liang/Moment/Getty Images)
Education budget 2026 expectation. (Image: Wong Yu Liang/Moment/Getty Images)
| Updated on: Jan 27, 2026 | 06:54 PM
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New Delhi: As Budget 2026 approaches, educators and industry leaders expect increased funding for AI, digital learning tools, virtual labs and creative technology programmes. Experts stress that integrating innovation-focused courses in schools and higher education will prepare students for future careers, reduce skill gaps and make India a global hub for tech and creative talent. Alongside tech, there is a push to strengthen arts and cultural education to ensure students receive a well-rounded foundation.

Experts are also urging the government to focus on employability and skill development. With millions of graduates entering the workforce annually, there is a need for vocational training, industry partnerships and hands-on learning programmes to make students job-ready. Overall, the industry leaders are in the hope that budget will balance innovation, skill development and cultural education to boost India’s economic growth and global influence.Chaitanya Chinchlikar – Vice President and Chief Technology Officer of Whistling Woods International- 'The Media and Entertainment education sector looks forward to continued governmental support as elucidated in the Hon. PM’s repeated mentions of the ‘Create in India’ mission and the Orange Economy. Incentives for educational institutions investing in cutting-edge technology infrastructure, particularly in emerging fields like AI, Virtual Production and immersive media would significantly strengthen India’s position as a global hub for techno-creative talent. Deepening foundational education in Creative & Performing Arts in high school needs a strong as solid push as well to ensure well-rounded education of our school students and their immersion in Bharatiya traditional art forms. Investments in the creative sector today will yield dividends in cultural soft power and economic growth for decades to come.'

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Roy Aniruddha, Founder and Chairman of TechnoStruct Academy- 'Union Budget 2025–26’s ₹1.28 lakh crore education allocation and AI investments look encouraging, yet outcomes reveal a widening employability gap. While India produces 1.5 million engineers annually, barely 43% are job-ready, with non-elite graduates facing outdated curricula and limited industry exposure. The top 1% institutions absorb most premium opportunities, leaving the majority under-skilled. Budget 2026 must shift focus to vocational engineering—GST relief on skill courses, tax incentives for industry-led training, and large-scale construction tech skilling—to unlock employability and inclusive growth.

Priyanka Mishra Founder n CEO Saraswati Hindi Jagat- 'We want the budget to also focus on empowering academia to help Hindi Language teachers upskill themselves to use latest social media tools and technology. This will help provide them opportunity to be able to teach Hindi to aspiring learners not only within their country in other cities and states but also internationally. Additionally this will us establish Hindi as a powerful medium to help Indians in India and worldwide to be able to connect to their roots, culture and motherland. 

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