Union Budget 2026: Experts highlight need for research, digital education, and future-ready skills

With the Union Budget 2026 approaching, education experts have called on the government to move beyond expanding enrollment and focus more sharply on quality, infrastructure, research, and future ready skills to fully leverage India’s young population.

Experts noted that India has the world’s second largest education system, with nearly 40% of the population under the age of 25, making targeted investment in higher education critical.

In the previous Union Budget, the education sector received an allocation of ₹1.28 lakh crore, a 6.22% increase over the previous year, with ₹50,077.95 crore set aside for higher education.

Recent economic survey data show continued expansion in the sector, with the number of higher education institutions increasing by 13.8% over the past eight years. During the same period, the Gross Enrollment Ratio rose from 23.7% to 28.4%.

“As the Viksit Bharat Shiksha Adhishthan Bill, 2025 raises expectations around compliance and accreditation, it is vital that the Budget also enables smaller universities to participate meaningfully in research. Even modest, well structured funding for small research projects and basic lab infrastructure can make a decisive difference,” said Prof P S Sastry, dean and distinguished professor at the School of Engineering and Technology, Vidyashilp University.

“Without such support, capable institutions and regional talent risk being inadvertently disadvantaged. Thoughtful funding provisions will ensure that regulatory reform strengthens, rather than narrows, India’s academic and research ecosystem,” Sastry added.

Dr P R Sodani, president of the Indian Institute of Health Management Research University, said higher public investment in education and healthcare is essential for building strong human capital.

He said spending should prioritize skill development, digital transformation, and institutional capacity building.

According to Sodani, Budget 2026 could be a turning point if it emphasizes infrastructure upgrades, digital and multilingual education, and preparing students for a knowledge driven economy.

Pankaj Priya, deputy director and dean of academics at BIMTECH, said that while access to higher education has expanded, physical infrastructure has lagged behind rising enrollment.

He pointed to shortages in laboratories, hostels, and student facilities, and said the upcoming Budget should place greater emphasis on capacity building, research, and employability.

“The next phase of reform must pivot towards quality, deep research capacity, and strong employability outcomes, not just expanding access,” Priya said.

He also stressed the need to align curricula with emerging technologies such as generative artificial intelligence and machine learning, in line with National Education Policy 2020 goals.

Tripti Maheshwari, co-founder and director of Student Circus, said Budget 2026 will be critical as India works toward its goal of hosting over one million international students by 2047.

“As India moves toward its ambition of hosting over one million international students by 2047, Budget 2026 becomes a decisive moment to shift from policy intent to on-the-ground delivery,” she said.

“The NITI Aayog roadmap makes it clear that growth without quality will not build a sustainable global reputation, and this must be reflected in how funding and incentives are designed. Investment should focus on globally benchmarked curricula, strong research ecosystems, and transparent quality assurance across institutions,” she added.

Maheshwari added that with foreign universities expected to expand their presence in India, outcomes will matter more than the number of campuses.

“International students increasingly choose destinations based on employability, industry linkages and post study career prospects,” she said.

“Budgetary support that encourages industry integrated learning, international faculty collaboration and outcome linked funding can significantly strengthen India’s credibility as a competitive, value driven study destination,” she added.