Union Budget 2025: The Union Budget of India was presented for the 8th time in the Lok Sabha by the Finance Minister, Nirmala Sitharaman on 1st February, 2025 for the year 2025-2026. The new budget is in accordance to the Central Government’s vision of “Vikshit Bharat” by 2047 and aims to strengthen skills, promote entrepreneurship, provide education and employment opportunities.
During her speech, FM Nirmala Sitharaman mentioned that the Budget 2025-26 is designed with a focus on the inclusive development and growth, investments and uplifting India’s rising middle class.
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Union Budget 2025: Highlights on Educational sector
Some major announcements were made for the education and employment sectors by FM Nirmala Sitharaman as part of the Union Budget 2025. The total of ₹128,650 crore has been allocated in Educational sector marking a 6.22% increase over BE 2024-25. The other details are provided below:
- The Department of School Education & Literacy has received its highest-ever budget allocation for the fiscal year 2025-26, totaling ₹78572 Cr.
- This represents a substantial increase of ₹5074 Cr, or 7%, compared to the budget allocation for the previous fiscal year 2024-25.
- The Kendriya Vidyalaya Sangathan (KVS) has received its highest-ever budget allocation of ₹9,503 crore in FY 2025-26. This marks an increase of ₹201.17 crore compared to the Budget Estimate (BE) of FY 2024-25. Additionally, when compared to the Revised Estimate (RE) of FY 2024-25, the allocation has risen by ₹776 crore, reflecting a 9% growth. This significant boost underscores the government’s commitment to strengthening the infrastructure and resources of KVS.
Key Initiatives on Education sector
The Union Budget 2025 highlights the increase in the funding for the education sector and creating new facilities.
1. Atal Tinkering Labs in government schools in the next 5 years
To cultivate curiosity and innovation among students, 50,000 Atal Tinkering Labs (ATLs) will be established in government schools over the next five years. This initiative aims to foster a scientific temper and provide access to innovation labs for students in all government secondary schools.
2. Broadband connectivity under Bharat Net Project
The budget proposes to provide broadband connectivity to all government secondary schools and primary health centers in rural areas under the BharatNet project. This initiative will bridge the digital divide and enhance access to online educational resources in rural India.
3. Set up of 5 National Centre of Skill Development
The budget proposes the establishment of five National Centres of Excellence for Skilling with global expertise and partnerships. These centers will focus on curriculum design, trainer development, and certification frameworks, equipping youth with skills for “Make for India, Make for the World” manufacturing.
4. Infrastructural Advancement in IITs
The Union Budget 2025 includes provisions for additional infrastructure in five newer IITs, enabling education for 6,500 more students, and expanding hostel facilities at IIT Patna. The Education Minister of India Dharmendra Pradhan also quoted that Shri Pradhan noted that the number of students in 23 IITs has doubled from 65,000 to 1.35 lakh in the past decade.
5. A new Centre of Excellence in Artificial Intelligence
A fourth AI Centre of Excellence will be established with an outlay of ₹500 crore to revolutionize India’s education system. This center will leverage artificial intelligence to address disparities, improve efficiency, and ensure equitable access to quality education from pre-primary to research levels.
6. Additional seat in medical colleges and hospitals
Addition 10,000 additional seats in medical colleges and hospitals from next year to address the growing healthcare needs and create a well-equipped healthcare workforce in the country.
7. Research, Innovation, and Manuscript Conservation
The budget allocates ₹20,000 crore for private sector-driven Research, Development, and Innovation (RDI). Additionally, the PM Research Fellowship scheme will provide 10,000 fellowships for technological research in IITs and IISc. The Gyan Bharatam Mission will document and conserve over 1 crore manuscripts, creating a National Digital Repository of Indian knowledge systems.
8. Bharatiya Bhasha Pushtak Scheme
The Bharatiya Bhasha Pustak Scheme, introduced in Union Budget 2025-26, aims to promote Indian languages in education by providing digital textbooks in regional languages for both school and higher education. This initiative is designed to help students better understand their subjects while preserving and promoting India’s linguistic heritage.
Reforms regarding Employment opportunities
The Union Budget 2025 has made significant announcements for the entrepreneurial and employment sector of India. The emphasis of the FM Sitharaman was on making investments – on people, economy and innovation.
1. Product Scheme
By focusing on the product scheme of footwear and leather industry, the creation of estimated job opportunities are 22 lakhs with an annual turnover of 4 lakh crore and export of about 1 lakh crore products.
2. Global Toy Hub
India’s toy exports dropped from $177 million in 2021-22 to $152 million in 2023-24 due to overall decline in the global demand of these products. The central government while announcing Union Budget 2025 on Saturday announced a scheme to make India a global hub for toys by focusing on cluster development
3. National Institutes in Bihar
Bihar to get new National Institutes including National Institute of Food Technology, Entrepreneurship and Management.
4. Tourism and business
About 50 tourist destination sites will be developed in the country, thus generating employment opportunities. This will be done in partnership with the state.
6. SWAMIH
Under the Special Window for Affordable and Mid-Income Housing Scheme, 50,000 units in housing projects have been completed, another 40,000 units to be completed by 2025. Thus, increasing job opportunities and helping middle class families.
Other Key Highlights
- Department of School Education & Literacy: Allocation of ₹78,572 crore, the highest ever, with a 7% increase from BE 2024-25. Flagship schemes like Samagra Shiksha, PM-POSHAN, and PM-SHRI saw significant increases.
- Department of Higher Education: Allocation of ₹50,077.95 crore, with a 5.16% increase from BE 2024-25. Major increases were seen in allocations for Central Universities, IITs, NITs, and IIMs.
- Autonomous Bodies: Total allocation increased by 7.42%, with notable increases for UGC, IITs, and IIITs.
Apart from this, the government has introduced many new reforms and schemes in the Union Budget 2025. Thus focusing and promoting the idea of a self-sustainable idea with rising business, development, and growth.
Important Links
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