Education experts are urging the Indian government to make significant shifts in its approach to the upcoming Union Budget 2026 . The primary focus should move beyond simply increasing student enrolment numbers. Instead, experts recommend prioritizing the quality of education, upgrading infrastructure, and equipping students with future-ready skills. This strategic shift is vital for India, which boasts the world’s second-largest education system and where nearly 40 percent of its population is under 25 years old. Investing wisely in education now will directly impact the nation’s young demographic, preparing them for future economic challenges and opportunities.
Past Budget Allocations and Sector Growth
In the previous Union Budget 2025-26 , education received an allocation of Rs 1.28 lakh crore. This figure represented a 6.22 percent increase compared to the year before. Within this total, higher education secured Rs 50,077.95 crore. Official government data indicates that the utilization of these education budget funds has improved considerably since the challenges posed by the COVID-19 pandemic.
Growth in the higher education sector has been consistent. The Economic Survey 2024-25 revealed a 13.8 percent rise in the number of higher education institutions over an eight-year period. Simultaneously, the Gross Enrolment Ratio (GER), which measures student participation in higher education, increased from 23.7 percent to 28.4 percent. While these numbers show expansion, experts argue the focus must now refine towards qualitative improvements.
Prioritizing Human Capital and Digital Transformation
Dr. P R Sodani, President of the Indian Institute of Health Management Research (IIHMR) University, emphasized the critical need for higher public investment in education and healthcare. He stated these investments are fundamental for robust human capital development. Developing human capital means investing in people’s skills, knowledge, and health, which directly contributes to a nation’s economic productivity and innovation.
Dr. Sodani specified key areas for this increased spending. He advised focusing on building skilled talent, fostering digital transformation across educational institutions, and enhancing institutional capacity. He believes the Union Budget 2026 offers a significant opportunity to be a turning point for the sector. If the budget strengthens physical infrastructure, promotes digital education tools, and supports multilingual learning environments, it will better prepare students. These efforts are crucial for India’s transition into a knowledge-driven global economy, where specialized skills and adaptable learning are paramount.
Addressing Infrastructure Gaps and Employability
Pankaj Priya, Deputy Director and Dean (Academics) at BIMTECH, identified a growing disparity. He explained that while access to education has expanded across the country, the supporting infrastructure has not kept pace with the rapid increase in student enrolment. This includes vital facilities such as modern laboratories, adequate hostel accommodation, and comprehensive student support services.
Priya stressed that the upcoming budget must prioritize capacity-building within institutions. This involves enhancing the ability of colleges and universities to deliver high-quality education and conduct meaningful research. Furthermore, he highlighted the urgent need to improve student employability outcomes. He asserted that the next phase of educational reform must focus on deep research capacity and strong job market readiness, moving beyond mere numbers of students enrolled.
Curriculum Alignment with Emerging Technologies
To further boost employability and ensure students are prepared for future careers, Pankaj Priya called for a proactive approach to curriculum development. He stressed the importance of aligning educational programs with rapidly advancing technologies. Integrating subjects and practical training related to emerging fields like generative Artificial Intelligence (AI) and machine learning is essential. This alignment directly supports the goals outlined in the National Education Policy 2020 (NEP 2020), which aims to transform India’s education system to meet 21st-century demands.
The collective recommendations from these experts underscore a clear message: the Union Budget 2026 must strategically invest in the qualitative aspects of education. This involves a sustained focus on robust infrastructure, skill development, and innovative curricula to leverage India’s vast youth potential and secure its economic future.