Union Budget 2025: Advancing Education Through AI, Skilling, and Research

by Ranjith Subeditor

The Union Budget 2025 has placed a strong emphasis on education, particularly in the areas of Artificial Intelligence (AI), skill development, and research expansion. With a total allocation of  Rs 1.28 lakh crore, the government has demonstrated its commitment to strengthening both school and higher education sectors.

Focus on Higher Education and AI Innovation 

Ms. Sanamdeep Chadha, Director of Genesis Global School, Noida.

Ms. Sanamdeep Chadha, Director of Genesis Global School, Noida.

The budget outlines significant initiatives to enhance learning opportunities for students across India. Sanamdeep Chadha, Director of Genesis Global School, Noida, welcomed the increased opportunities for higher education, particularly with the expansion of IITs and medical seats. “While students will now have increased opportunity to pursue their higher education at prestigious colleges like the IITs, the medical aspirants too can expect more number of seats, which has been a long pending demand of the health education sector,” she stated.

Further solidifying the government’s tech-driven approach, a Centre of Excellence in AI for Education has been announced with a budget of Rs 500 crore. This initiative is expected to revolutionise education by leveraging AI-powered learning solutions.

Shantanu Prakash, Founder, The Millennium Group of Schools

Shantanu Prakash, Founder, The Millennium Group of Schools.

Shantanu Prakash, Founder of The Millennium Group of Schools, highlighted the importance of this move, stating, “This focus on AI-driven learning aligns with our vision at The Millennium Group of Schools, where we are celebrating 2025 as the Year of AI in Education. With continued efforts, AI and digital learning will help students adapt to the future and lead it.”

Strengthening School Education and Skill Development

While the budget outlines transformative steps for higher education, experts have pointed out the need for a greater focus on school education. Chadha noted, “We, however, also expected some specific announcement or budgetary allocation with regard to upgrading school education in India. With skill enhancement assuming utmost importance in the current time, it is essential that the seeds of it are sown at a preliminary stage itself.”

To address skill gaps, the government has introduced five National Centres of Excellence for Skilling, aligning education with industry demands. Husien Dohadwalla, Co-CEO, Crimson Schools, commended this approach, stating, “For skill development, the establishment of five National Centres of Excellence for Skilling will align education with industry needs, equipping students with the competencies required for a ‘Make for India, Make for the World’ workforce.”

Inclusive Learning Through Digital Initiatives

A key step towards inclusivity is the Bharatiya Bhasha Pustak Scheme, which will provide digital Indian language books, making education more accessible across diverse linguistic backgrounds. Dohadwalla remarked, “Enabling subject comprehension in native languages will help bridge learning gaps and support deeper engagement.”

Husien Dohadwalla, Co - CEO, Crimson Schools

Husien Dohadwalla, Co – CEO, Crimson Schools.

Additionally, the expansion of 50,000 Atal Tinkering Labs will encourage early STEM learning and innovation among students. “Although currently focused on government schools, this initiative signals a broader shift, prompting private institutions to continue strengthening their innovation ecosystems to help students remain competitive,” Dohadwalla added.

Expansion of Research and Medical Education

The budget also includes 10,000 PM Research Fellowships, aimed at boosting research capabilities in India. The addition of 6,500 IIT seats will further enhance opportunities for students pursuing science and technology education. In medical education, 10,000 new seats next year and a target of 75,000 over five years will help meet the growing demand for medical professionals.

Dohadwalla acknowledged the long-term impact of these initiatives, stating, “While these initiatives establish a solid foundation, their success hinges on equitable implementation, comprehensive teacher training, and seamless industry-academia collaboration to convert policy intent into measurable educational progress.”

The Union Budget 2025 has set the stage for a transformative shift in education, balancing technological advancements with skill development and research. With a clear vision for AI-driven learning and a strong commitment to increasing accessibility and innovation, the government aims to equip students with the necessary tools to navigate the future.

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