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EDUNEWS & VIEWS

From Classrooms to Corridors: How India’s Budget Repositions Education

Budget 2026–27 reframes education as economic infrastructure—linking skills, research and industry—while shifting India’s learning system away from rote pathways towards future-ready ecosystems.

Dipin Damodharan

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Budget 2026–27 reframes education as economic infrastructure—linking skills, research and industry—while shifting India’s learning system away from rote pathways towards future-ready ecosystems.
Image credit: Soumayan Biswas/Pexels

India’s Union Budget 2026–27 does not dramatically expand headline spending on education, but it signals a clear shift in how education is expected to deliver economic value. With a total allocation of Rs1.39 lakh crore—largely in line with last year—the focus moves decisively from enrolment expansion to outcomes, skills, and integration with industry and research ecosystems.

Presented alongside the government’s Viksit Bharat 2047 (Developed India) vision, the education budget positions learning as a strategic economic investment—one that links schools, universities, skilling centres and enterprises into a single pipeline aimed at employability, innovation and global competitiveness.

From Classrooms to Creative Economies

A major thrust of the budget is the expansion of creative and technology-driven learning. The proposal to establish AVGC (Animation, Visual Effects, Gaming and Comics) Content Creator Labs in 15,000 secondary schools and 500 colleges marks a significant bet on India’s “orange economy,” projected to require nearly two million professionals by 2030.

This creative push is complemented by the announcement of a new National Institute of Design in eastern India and expanded digital infrastructure, including mandatory broadband connectivity for all government secondary schools. Together, these measures signal a move away from textbook-centric learning towards experiential, project-based education aligned with emerging industries.

Dr Bushra, Associate Professor – Finance at JIMS Rohini, describes this as a long-overdue alignment between education and the real economy. “The Union Budget’s strong push to strengthen the education, employment, and enterprise continuum is a progressive step,” she notes, adding that University Townships near industrial and logistics corridors can “significantly enhance experiential education by integrating academia with real-world business ecosystems.”

University Townships and the Industry-Education Bridge

Perhaps the most structural reform in the budget is the proposal to establish five University Townships near major industrial corridors, developed in partnership with states. These townships are envisioned as integrated hubs combining universities, research institutions, skilling centres and industry partners—breaking the long-standing silos between education and employment.

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This model reflects a broader policy shift: instead of producing graduates first and searching for jobs later, education is being spatially and institutionally embedded within production and innovation ecosystems.

For higher education institutions, this presents both opportunity and pressure. As Dr Bushra points out, institutions now have a chance to “deepen partnerships with industry, embed emerging technologies such as AI and analytics into curricula, and foster entrepreneurial thinking among students.” At the same time, the success of these townships will depend on execution, governance clarity and sustained state-level engagement.

AI, Research and the End of Rote Learning

The budget’s Rs 500 crore allocation for a Centre of Excellence in Artificial Intelligence for education reinforces the pivot towards research-led, technology-enabled learning. The centre is expected to support AI-driven teaching tools, personalised learning and adaptive assessments across school and higher education.

Atishay Jain, Managing Partner at Koncept Global Books, sees this as a clear departure from legacy learning models. “The Budget’s clear emphasis on research-led education and future technologies like AI signals a shift from rote learning to innovation-driven skill development,” he says. According to Jain, structured investments in advanced learning ecosystems encourage institutions to prepare students for emerging industries rather than “legacy roles.”

This emphasis is reinforced through the expansion of the PM Research Fellowship to 10,000 scholars, new national centres of excellence for skilling, and a stronger focus on translational research that connects academic output with industry application.

Equity, Access and Gender Inclusion

Alongside innovation, the budget also addresses access and equity—albeit selectively. The announcement of one girls’ hostel per district, particularly in STEM-focused institutions, is aimed at improving participation and retention of women in higher education. Scholarships, interest-free loans for economically weaker sections, and continued support for early childhood programmes such as Poshan 2.0 signal continuity in inclusion-focused policy.

“These measures ensure that education remains both aspirational and equitable,” says Dr Bushra, adding that inclusive access must remain central as curricula and delivery models evolve.

What the Budget Still Leaves Open

Despite its forward-looking design, the education budget leaves some structural questions unanswered. Public education spending still falls short of the long-articulated 6 percent of GDP target. Faculty shortages, research commercialisation challenges, and uneven state-level capacity remain persistent bottlenecks.

Moreover, while digital infrastructure and AI integration are emphasised, large-scale teacher upskilling and institutional readiness will determine whether these investments translate into improved learning outcomes rather than isolated pilots.

A Directional Budget for a Knowledge Economy

Union Budget 2026–27 may not be an expansionary education budget, but it is a directional one. By tying education more closely to industry, research and future technologies, it reflects an understanding that India’s demographic dividend can only be realised through relevance, quality and adaptability.

As Atishay Jain notes, strengthening the research and learning foundation will be “critical to nurturing future-ready talent and supporting India’s ambition of becoming a global knowledge powerhouse.” The real test, as with many education reforms, will lie not in intent but in execution—across classrooms, campuses and corridors of industry alike.

Dipin Damodharan is the Co-founder and Editor-in-Chief of EdPublica. A journalist and editor with over 15 years of experience leading and co-founding both print and digital media outlets, he has written extensively on education, politics, and culture. His work has appeared in global publications such as The Huffington Post, The Himalayan Times, DailyO, Education Insider, and others.

The Sciences

STEM Scholarships for First-Generation College Students: Breaking the Cycle of Poverty

STEM scholarships help first-generation college students access higher education, build careers and break cycles of generational poverty.

STEM scholarships can help first-generation college students overcome financial barriers and pursue careers in science, technology, engineering and mathematics.
Image credit: Stem.T4L/ Unsplash

STEM scholarships are helping first-generation college students overcome financial barriers, access technical education and build careers that can transform families and communities.

In many households across India, the dream of higher education is often overshadowed by the immediate need to make ends meet. For a first-generation college student, earning a university degree is more than a personal achievement; it is a responsibility carried on behalf of an entire family.

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While access to basic education has expanded significantly, entering specialised professional fields remains difficult for students from disadvantaged backgrounds. Science, technology, engineering and mathematics (STEM) disciplines offer one of the most effective pathways out of poverty, yet they are often the hardest to access. The challenge begins long before the first day of college. Talent alone cannot bridge the gap between a modest household and a modern laboratory. Beyond tuition fees, students face a range of hidden costs and barriers that make technical education difficult to pursue.

Without a financial safety net, many capable students are forced to abandon their studies or take up low-skilled jobs to support their families

The Financial Barrier to Technical Education

For a first-generation student, choosing to study engineering, medicine or other STEM disciplines can be a daunting financial decision. Unlike many other degree programmes, STEM courses often involve higher tuition fees, laboratory expenses and intensive academic schedules that leave little time for part-time work.

Without a financial safety net, many capable students are forced to abandon their studies or take up low-skilled jobs to support their families. This is where STEM-focused scholarships can make a meaningful difference.

The most effective scholarship programmes do far more than cover tuition. They often support living expenses, books, learning materials and travel costs. By reducing financial pressure, scholarships allow students to focus on their studies and complete their degrees successfully. Yet financial support alone is only one part of the solution.

Bridging the Skills Gap and Creating Livelihoods

The value of a STEM education extends well beyond individual success. In today’s technology-driven economy, technical skills have become increasingly valuable, opening doors to careers that can transform lives and communities.

First-generation graduates often find opportunities in fast-growing sectors such as healthcare, nursing, pharmacy, engineering and technology. Stable and well-paying jobs can help families move beyond cycles of poverty that may have persisted for generations.

For young women in particular, STEM scholarships can be transformative. Targeted support helps address barriers such as financial constraints, social expectations and unequal access to opportunities.

When a young woman from an underserved community becomes a healthcare professional, engineer or software developer, her success often inspires others around her. The impact extends beyond one individual, encouraging more students to pursue higher education and professional careers. In this way, scholarships help create a new generation of skilled professionals who better reflect the diversity of the society they serve.

Nurturing Growth Beyond the Classroom

There is growing recognition that scholarships should be viewed not simply as financial assistance but as an investment in human potential.

Many first-generation students face uncertainty when transitioning from education to employment. The strongest scholarship models therefore combine financial support with mentorship, career guidance and skills development.

Funding alone is not enough. Students also need exposure to professional environments and opportunities to develop workplace skills. Digital learning platforms, mentoring programmes, skill-building workshops and industry interactions can help bridge this gap.

When students are supported through a broader ecosystem, they are better prepared for life after graduation. They enter the workforce not merely as degree holders but as confident professionals equipped to compete in a rapidly changing economy.

Ultimately, targeted STEM scholarships can turn structural barriers into opportunities. By enabling talented students to access education, develop skills and secure meaningful careers, they help break cycles of generational poverty while contributing to a more equitable and prosperous society.

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EDUNEWS & VIEWS

India’s Moment: The Race to Become the World’s Next Great Study Destination

With Anglophone giants closing their doors, a recent QS report reveals how India is positioning itself as the global higher education alternative – but warns that reputation and infrastructure gaps could hold it back.

Joe Jacob

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Image: Emmanuel Offei/Unsplash

India is on the cusp of a significant shift in global higher education. According to the QS Global Student Flows: India 2026 report — now in its eighth year and drawing on data from over 70,000 students across 191 countries — inbound international student numbers are forecast to grow at approximately 8% per year from an estimated base of 58,000 in 2025, making India one of the fastest-growing study destinations in the world.

The timing is not coincidental. As the United States, Canada, Australia, and the United Kingdom tighten visa routes and raise costs, students across South Asia, Africa, and the Middle East are actively looking for alternatives. India — affordable, English-medium, and geographically proximate — is increasingly the answer.

South Asia anchors India’s international student body, accounting for nearly half of all foreign enrolments. Nepal and Bangladesh together represent over 30% of arrivals, with Nepal projected to grow at around 11% annually through 2030. African demand is rising quickly too. Zimbabwe stands out, with projected annual growth of around 11%, which would lift it from India’s seventh-largest African source country to sixth by 2030. The UAE is the leading Middle Eastern contributor, expected to account for around 5% of India’s inbound population by the decade’s end.

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Government policy is accelerating this momentum. The Study in India programme has streamlined admissions and reduced financial barriers, while the National Education Policy 2020 has enabled foreign universities to open local campuses and expanded the number of seats available to international students. India’s longer-term ambition — to host 500,000 foreign students by 2047 — signals strong political intent.

Yet the report is equally candid about what could derail this trajectory. While Indian universities have improved their employer reputation rankings significantly — rising 61 places in median rank since 2017 — academic reputation rankings have seen little progress, and this matters: over 70% of Middle Eastern students cite institutional reputation as a decisive factor. The employability gap is equally concerning; only 42.6% of Indian graduates are considered job-ready according to a 2025 Mercer-Mettl report, even as employer reputation continues to climb. Infrastructure, too, remains a pressure point — rapid expansion without commensurate investment in housing and student support risks undermining the experience India is trying to sell.

On outbound flows, India remains the world’s second-largest source of international students, with over 800,000 studying overseas. But the traditional Big Four destinations are forecast to see a small average decline of 0.5% in Indian enrolments through 2030, as Germany, France, and the UAE emerge as preferred alternatives.

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EDUNEWS & VIEWS

Vidya Vanam to Host National Conference on AI in Education

Vidya Vanam will host a national conference on AI in education in May, bringing experts and students together to discuss future learning trends.

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Vidya Vanam will host a national conference on AI in education in May, bringing experts and students together to discuss future learning trends.
Image credit:  Pavel Danilyuk/Pexels

India’s Coimbatore-based Vidya Vanam Senior Secondary School will host its Sixth National Conference on Education on May 29 and 30, focusing on the theme “AI in Education.” The two-day conference will bring together educators, policymakers, researchers, artists, and students to explore how artificial intelligence is reshaping learning, teaching, and assessment.

The conference will examine a wide range of themes, including AI and employability, the human element in learning, creativity in the age of AI, responsible use of AI, AI in research, and AI-enabled assessment systems. A dedicated student panel featuring participants from schools and colleges will offer young learners’ perspectives on the growing role of AI in education.

Jibu Elias, head of the Responsible Computing Challenge in India at the Mozilla Foundation, will deliver the keynote address. The valedictory address will be given by S. Krishnan, Secretary, Ministry of Electronics and Information Technology, Government of India.

The conference will also feature a diverse lineup of speakers, including Rishikesha Krishnan (IIM Bangalore), Sai Narayanan Sundarakrishnan (Amrita Vishwa Vidyapeetham), Nandan Sudarsanam (IIT Madras), Salil Sahadevan (UGC), Shruthi Viswanathan (NCBS Bengaluru), Pon Mythili M. (Great Lakes Institute of Management), and Sakshi Kathuria (JAGSoM). Creative voices such as theatre artist Parshathy Nath, musician Vignesh Ishwar, artist Parvathy Nayar, and author Sandhya Rao will also contribute to discussions on creativity and human expression in the age of AI.

The event will be held at the Vidya Vanam campus on Thuvaipathy Road, Anaikatti, Coimbatore, and is open to educators, students, and the public. Registration is available through the official event page or via email and phone contact provided by the organisers.

For a deeper exploration of how artificial intelligence is transforming education, read the cover story of Education Publica on AI Literacy here.

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