Over the past decade, IIT student intake has doubled, from 65,000 in 2014 to 1.35 lakh today. This expansion reflects India’s commitment to strengthening STEM (Science, Technology, Engineering, and Mathematics) education.
Education has long been recognized as the bedrock of a nation’s progress. As Prime Minister Narendra Modi aptly stated, “Education is not only the foundation upon which our civilization has been built, but it is also the architect of humanity’s future.” The Union Budget 2025-26 takes a giant leap in this direction by introducing transformative initiatives aimed at making India a global education hub. From expanding medical seats and enhancing skilling infrastructure to strengthening the IIT ecosystem, the budget outlines a forward-thinking approach to equipping India’s youth with the necessary skills for the future.
Key Announcements: A Roadmap for a Smarter, Inclusive India
- Bharatiya Bhasha Pustak Scheme
Language plays a crucial role in a student’s ability to grasp concepts effectively. Recognizing this, the government has introduced the Bharatiya Bhasha Pustak Scheme, which aims to provide digitized books in Indian languages for both school and higher education. This initiative aligns with the vision of National Education Policy (NEP) 2020, which emphasizes education in the mother tongue for better learning outcomes. By making textbooks available in multiple regional languages, this scheme will promote inclusivity and ensure that students can understand complex subjects in their native language, reducing learning gaps and improving academic performance.
- National Centres of Excellence for Skilling
The government is focusing on bridging the skill gap by setting up five National Centres of Excellence for Skilling in partnership with global institutions. These centers will serve as hubs for skill development, covering curriculum design, trainer training, skills certification, and continuous improvement. Modernizing course content to match global industry standards will ensure that students are equipped with the latest skills. These centers will also prepare highly qualified trainers who can impart industry-relevant knowledge. Additionally, internationally recognized certifications will be provided to enhance employability, and regular assessments will keep training programs updated. By establishing these centers, India aims to equip youth with
cutting-edge skills, boosting their job prospects in emerging sectors like AI, robotics, advanced manufacturing, and clean energy.
- Expansion of IITs
To meet the rising demand for quality technical education, the government is expanding infrastructure in five IITs that were established after 2014. This move will allow 6,500 additional students to enroll in top-tier engineering programs. IIT Patna will undergo major expansion, adding hostel and academic infrastructure. Over the past decade, IIT student intake has doubled, from 65,000 in 2014 to 1.35 lakh today. This expansion reflects India’s commitment to strengthening STEM (Science, Technology, Engineering, and Mathematics) education, ensuring that the country produces more highly skilled engineers and researchers to drive future innovation.
- Centre of Excellence in AI for Education
Artificial Intelligence (AI) is transforming education worldwide. To leverage this technology, the government is setting up a Centre of Excellence in AI for Education with a dedicated investment of Rs 500 crore. This center will develop AI-driven learning tools to enhance personalized education and support research in AI applications for education and pedagogy. It will also train teachers and students in AI-related fields, preparing them for AI-driven careers. Furthermore, the center will improve accessibility for students with disabilities through AI-powered assistive technologies. By integrating AI into education, India aims to revolutionize learning methodologies, making education more interactive, efficient, and customized to individual student needs.
- Expansion of Medical Education
The healthcare sector in India is witnessing rapid growth, and to support this, the government is making significant investments in medical education. In the last 10 years, UG and PG medical seats have increased by 130%, reaching 1.1 lakh seats. This year alone, 10,000 additional seats will be added across medical colleges and hospitals. Over the next five years, the government aims to add 75,000 more seats, further strengthening India’s healthcare workforce. This expansion is critical for addressing India’s growing healthcare needs, improving the doctor-to-patient ratio, and ensuring better access to medical services, especially in rural areas.
India’s Evolving Education System
India’s education sector has undergone a remarkable transformation, catering to 24.8 crore students across 14.72 lakh schools, supported by a workforce of 98 lakh teachers. Government schools form the backbone of this system, constituting 69% of the total and enrolling 50% of students. Meanwhile, private schools, which account for 22.5% of institutions, serve 32.6% of students. This expansion reflects the dynamic shifts in India’s education landscape and the continuous improvements in accessibility and enrollment.
Enrollment Trends: Towards Universal Education
The National Education Policy (NEP) 2020 has set an ambitious goal of achieving a 100% Gross Enrollment Ratio (GER) by 2030, ensuring that every child has access to education. India has already made significant progress in this regard. The GER at the primary level is close to achieving universal coverage at 93%, reflecting strong foundational education access. However, challenges remain at higher levels, with GER at the secondary level at 77.4% and higher secondary level at 56.2%. Despite these gaps, higher education enrollment has seen a remarkable surge, increasing from 3.42 crore students in 2014-15 to 4.33 crore in 2021-22, marking a 26.5% growth. Additionally, women’s enrollment in higher education has risen by 32%, with notable participation in fields like Medical Science, Social Science, and Arts, indicating greater gender inclusivity in advanced education. This expansion in education access has led to greater social mobility, allowing students from marginalized communities to break the cycle of poverty. It has also contributed to economic empowerment, as a more educated population is better equipped to participate in high-value jobs and entrepreneurship.
Reducing Dropout Rates
One of the critical challenges in achieving universal education is reducing dropout rates, and India has made steady progress in this area. At the secondary level, the dropout rate has significantly decreased from 21% in 2013-14 to 13% in 2021-22. Similarly, at the primary and upper primary levels, dropout rates have declined to 1.9% and 5.2%, respectively. This improvement is attributed to government initiatives, including scholarship programs, school infrastructure development, midday meals, and digital learning initiatives, which have encouraged more students to continue their education. The social impact of reducing dropout rates is profound, as it ensures that more young individuals gain essential knowledge and skills, reducing the likelihood of child labor, early marriages, and social exploitation. With more students staying in school, there is an increase in social awareness, leading to better civic engagement, reduced crime rates, and stronger community participation.
Expansion of Higher Education Institutions
To accommodate the rising demand for higher education, India has undertaken massive expansion in the number of Higher Education Institutions (HEIs). The medical education sector has witnessed substantial growth, with the number of medical colleges increasing from 499 in FY19 to 780 in FY25, leading to a rise in MBBS seats from 70,012 in FY19 to 1,18,137 in FY25. In the field of technical and management education, IITs have grown from 16 in 2014 to 23 in 2023, while the number of IIMs has increased from 13 in 2014 to 20 in 2023. The overall university count has surged from 723 in 2014 to 1,213 in 2024, reflecting a 59.6% growth. The total number of HEIs has expanded from 51,534 in 2014-15 to 58,643 in 2022-23, demonstrating India’s strong commitment to providing access to higher education for a growing student population. This expansion has bridged the rural-urban educational divide, bringing quality education closer to students in smaller towns and villages. It has also strengthened India’s knowledge economy, producing a highly skilled workforce that can contribute to technological advancements, innovation, and global competitiveness.
Strengthening Education Infrastructure
Infrastructure improvements have played a vital role in enhancing the quality of education across the country. Between 2019-20 and 2023-24, several advancements have been made in school facilities. The percentage of schools with separate girls’ toilets increased from 96.9% to 97.2%, promoting better hygiene and retention of girl students. Access to libraries improved from 84.1% to 89%, ensuring that students have more learning resources. Electricity availability in schools rose from 83.4% to 91.8%, reducing disruptions in teaching and learning. There was also a notable increase in schools with computers, rising from 38.5% to 57.2%, while internet availability jumped from 22.3% to 53.9%, enabling better digital education opportunities. These improvements have had a profound social impact, ensuring inclusive education for all, particularly for students from economically weaker sections. The availability of toilets and electricity has improved girls’ attendance and retention rates, while digital infrastructure has connected rural students with global learning resources, reducing the urban-rural education gap.
A Bold Vision for the Future
India’s education sector has made tremendous progress in increasing enrollment, reducing dropout rates, expanding higher education institutions, and improving infrastructure. With continued efforts under the National Education Policy 2020, the country is moving closer to achieving universal education and ensuring that students receive quality learning opportunities at every level. These reforms are not only helping bridge educational gaps but also transforming society by creating an informed, skilled, and economically empowered population. Education is playing a crucial role in nation-building, fostering innovation, and strengthening India’s global leadership in various fields. By prioritizing inclusive and accessible education, India is ensuring a more equitable and progressive future for all.
The government’s continued focus on education, backed by initiatives aligned with NEP 2020, is shaping India into a global knowledge powerhouse. Programs like Samagra Shiksha Abhiyan, PM SHRI (Pradhan Mantri Schools for Rising India), and PM POSHAN (Pradhan Mantri Poshan Shakti Nirman) are driving improvements in infrastructure, teacher training, and learning outcomes.
The Economic Survey underscores India’s progress in making education more inclusive, accessible, and globally competitive. As the nation marches toward Viksit Bharat, the transformative steps taken in this budget will pave the way for a robust, knowledge-driven economy, ensuring that India’s youth are equipped to lead the world in innovation, research, and development.
(The views expressed are the author's own and do not necessarily reflect the position of the organisation)