Union Budget 2026 Expectations: Education leaders seek focus on skills, AI, faculty development

New Delhi: With the Union Budget 2026 scheduled to be presented on February 1, expectations across the education sector align funding priorities, with the country becoming a knowledge-driven and innovation-led economy. Education leaders, policy experts, and institutional heads believe the upcoming budget presents an opportunity to strengthen the foundations of learning, research and skill development in line with the goals of the National Education Policy (NEP) 2020. From primary education to higher learning and employability, experts are looking forward to targeted investments.

Across schools, universities and other institutions, there is a growing consensus that research funding, faculty development, digital infrastructure, and industry collaboration must form the core of budgetary allocations this year. Experts stress the need for greater equity in access to quality education, particularly for students in rural and underserved regions. Check here what education experts are expecting from the Union Budget 2026.

Professor Indranil Manna, Vice Chancellor, Birla Institute of Technology, Mesra- 'With the Union Budget 2026 set to be introduced next month, we at BIT Mesra look forward to measures that enhance investment in research, innovation, and digital infrastructure. Emphasis on funding for higher education, especially in emerging domains such as artificial intelligence, clean energy, and advanced manufacturing will be critical to building future-ready talent. Additionally, continued support for start-up incubation and industry-academia collaboration can further allow students and researchers to shape ideas into scalable, real-world solutions. At the same time, focused allocations for scholarships and skill development will help ensure equitable access to quality education across regions. Today, more students in India study in private universities and colleges than in government-funded institutions. Hence, the government must provide them with identical opportunities and support in the forthcoming budget.

Shishir Jaipuria, Chairman, Jaipuria Group of Educational Institutions- 'We have strong expectations for the education sector from the Union Budget 2026. Education is one of the important sectors that creates the foundation of the talent pool which drives other sectors. It has to get its due budgetary allocation in line with the recommendations of NEP 2020.

My biggest expectation is in terms of the professional development of educators, because empowered teachers elevate the standards of education more than anything else. Secondly, in accordance with the curricular reforms introduced by CBSE with respect to mandatory skill education for grades 6 to 8, I wish to see greater thrust on vocational and skill-based education through national programs and structured funding. Likewise, integration of AI within school systems should be encouraged with investments directed towards enhancing digital infrastructure, ensuring that the schools in rural areas and far-flung towns are not left behind. Equity in education is a subject close to my heart. Budgetary allocations directed towards improving the infrastructure, ensuring adequate teachers per public schools, and elevating the quality of learning in rural areas will help a great deal to empower the last child. Lastly, I look forward to some announcements encouraging the public-private partnerships in education, so that private capital may enter education and take it to the global standards. India’s march towards becoming a knowledge superpower and Viksit Bharat will be powered by the education sector. The Union Budget should reflect this ambition.'

Prof Dr Daviender Narang, Director, Jaipuria Institute of Management- 'As we look towards the Union Budget 2026, the focus should be on inclusive growth driven by investments in education, skill development, and employment generation. Strengthening higher education, research, and industry–academia collaboration will be crucial for building a future-ready workforce. Support for MSMEs, startups, and digital infrastructure can further boost innovation and job creation. At the same time, rational taxation and inflation control are essential to provide relief to the middle class and sustain consumption. A balanced, reform-oriented budget can accelerate economic growth while ensuring long-term stability.'

Anushika Jain Founder CEO, Globally Recruit- 'India’s education sector is witnessing rapid transformation, and the upcoming Union Budget offers a pivotal opportunity to empower India’s learners and innovators. We expect to see announcements that encourage edtech platforms to expand access, reduce barriers, and deliver transformative learning experiences. Initiatives such as tax incentives, funding for skill‑building initiatives, and infrastructure support for digital education will ensure a supportive environment for growth. By fostering collaboration between academia, industry, and government, the budget can lay the foundation for scalable solutions that prepare students for global careers.'

Kunal Vasudeva, Managing Director and Co-founder of Indian School of Hospitality- 'History offers no example of a nation achieving sustained prosperity without deep investment in education. Developed economies progressed by building functional capability at scale, not by improving literacy metrics alone. India’s real challenge lies in execution, not policy intent. Budget 2026 must place education in the everyday vocabulary of the country and give it a seat at the highest decision making table. This requires absolute priority over the next two decades, starting with a fundamental reset of primary education, particularly in rural India where outcomes remain uneven. One practical lever is the development of indigenous AI tools that strengthen teachers’ everyday effectiveness and enable rural classrooms to meet the same functional standards as private schools. If India is serious about Viksit Bharat, this is the only credible path forward.'

Preethi Rajeev Nair, Principal-CBSE, Lancers Army Schools- 'Budget 2026 should focus less on launching schemes and more on building capability. Institutional infrastructure, faculty training, and digital system integration must be treated as core investments. Many schools and higher education institutions still struggle to meet Outcome-Based Education requirements due to outdated facilities and fragmented Faculty Development Programmes. Targeted funding in these areas is not only policy-aligned but operationally effective.

Improved faculty capacity, technology-enabled classrooms, and applied STEM instruction directly raise instructional quality and student readiness. Employability outcomes strengthen when credit-transfer frameworks and industry-linked capstone projects reduce the friction between education and work.

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Clean energy adoption and universal digital access act as force multipliers, lowering operating costs while expanding reach. Education is no longer symbolic spending - It is an execution tool - and Budget 2026 should fund it with that precision.'

Chaitanya Chitta, Regional Head India and South Asia for Cintana Education- 'With the Union Budget 2026 just around the corner, we expect comprehensive announcements that enhance the international outreach of educational institutions. To foster a workforce for Industry 4.0 and change agents, universities and institutions must be empowered with conducive policies, strategic funding, and collaborative frameworks that enable them to collaborate with globally acclaimed institutions. By strengthening partnerships, supporting dual-degree programs, and investing in student and faculty mobility, India can position its higher education sector at par with the world’s leading education systems. An education-oriented budget will also pave the way for creating transformative opportunities for Indian students, enabling them to navigate and thrive in a rapidly evolving business landscape.'