Union Finance Minister Nirmala Sitharaman presented the 2026 Union Budget on February 1, 2026. The budget focuses on youth development, termed ‘Yuva Shakti.’ Key announcements include funding for educational upgrades, artificial intelligence (AI) initiatives, and new Ayurveda institutes.
Economic Survey Findings
The Economic Survey 2025-26 identified challenges in school education. While school enrollment is near universal, learning outcomes remain inconsistent, particularly beyond elementary levels. The net enrollment rate drops significantly at the secondary level, standing at just over 52%.
Educational institutions have increased from 51,534 to 70,018 by June 2025, improving access. This expansion includes more universities and colleges. India’s school system enrolls 24.69 crore students across 14.71 lakh schools with over 1.01 crore teachers.
Key Education Schemes Announced
The budget allocates resources for several new initiatives. A strategy called ‘BioPharma Shakti’ aims for health advancements through knowledge and technology. It includes ₹10,000 crore over five years, three new National Institutes of Pharmaceutical Education and Research (NIPER), and upgrades to seven existing ones.
‘Corporate Mitras’ will support the Institute of Chartered Accountants of India (ICAI), Institute of Company Secretaries of India (ICSI), and Institute of Cost Accountants of India (ICMAI). They will develop short-term module courses and practical tools for Tier 2 and Tier 3 towns.
A High-Powered ‘Education to Employment and Enterprise’ Standing Committee will be formed. This committee will recommend measures to boost the services sector. The goal is to establish India as a global leader in services with a 10% global share by 2047.
Government support for emerging technologies includes the AI Mission, National Quantum Mission, and National Research Fund. Research and Development (R&D) and Innovation funds are also prioritized.
New Institutions and Upgrades
Three new All India Institutes of Ayurveda will be established. These will train 1.5 lakh caregivers in wellness and yoga services. Ten new Allied Health Disciplines will be created. These include Optometry, Anaesthesia, and Applied Psychology. The aim is to train 1 lakh allied health professionals over five years.
Animation, Visual Effects, Gaming, and Comics (AVGC) content creator labs will be set up in 1,500 secondary schools and 500 colleges. These labs will enhance creative and digital skills among students.
Five university townships will be built near industrial and logistics centers. These townships will integrate universities, colleges, residential facilities, and research infrastructure. This aims to better align education with industry needs.
One girls’ hostel will be built in every district. This initiative seeks to improve access to education and promote higher education for girls.
Tourism and Healthcare Initiatives
The budget supports states in establishing five Regional Medical Hubs . These will be created in partnership with the private sector. Initiatives include AYUSH Centres, Medical Value Tourism Facilitation Centres, and infrastructure for diagnostic post-care and rehabilitation.
The National Institute of Hospitality will be established. This will upgrade the existing National Council for Hotel Management and Catering Technology.
A pilot scheme will train 10,000 guides at 20 iconic tourist sites. This training will be delivered in a hybrid format by IIMs. It involves a standardized, high-quality 12-week course.
A new national mental health institute will be established in North India. It will be similar to the National Institute of Mental Health and Neuro-Sciences (NIMHANS). The existing mental health institute in Ranchi will also be upgraded.
Key telescope infrastructure, including the National Large Optical Infrared Telescope and the Himalayan Chandra Telescope, will receive upgrades.