The Union Budget 2025-26 introduces significant reforms aimed at strengthening India’s education sector and providing long-awaited relief to the middle class. A key initiative is the government’s commitment to reducing the digital divide by ensuring broadband connectivity, which will significantly enhance the quality of education.

A major step toward improving employability is the establishment of five National Centres of Excellence for Skilling in collaboration with global partners. These centers will provide AI-integrated education and training, equipping students with advanced skills that align with industry demands and reducing employability concerns. Additionally, a Centre of Excellence in AI for education will be established to revolutionize learning experiences, assessments, curriculum design, and pedagogy.

The government has also announced the Bharatiya Bhasha Pustak Scheme, which will provide digital-form Indian language books for school and higher education. This initiative will enable students to comprehend their subjects more effectively and strengthen regional language education.

Medical education is another focus area in the budget, with a remarkable 130% increase in UG and PG seats. An additional 10,000 seats in medical colleges and hospitals will be created next year, with a long-term goal of adding 75,000 seats over five years. These expansions aim to address the growing demand for healthcare professionals in the country.

The budget also delivers a major boost to the middle class, with income tax exemptions extended from Rs 7 Lakhs to Rs 12 Lakhs, increasing disposable income and driving economic consumption. Viral Kagrana, Finance Head of NeoNiche Integrated Solutions Pvt Ltd, remarked, "A long-awaited booster finally arrives for the middle class, aligning with sustainable economic growth strategies in agriculture, MSMEs, investment, and exports."

Furthermore, the budget supports labour-intensive sectors, including food processing, textiles, leather, and toys, which will generate employment and drive skill development.

The government continues its commitment to support MSME growth, focusing on ease of doing business and increasing access to credit, thereby laying the foundation for an entrepreneurial culture.

Dr. Devesh Kumar Singh, Chairman of Noida International University, expressed his support for these initiatives, stating: “The government’s commitment to bridging the digital gap, strengthening skilling programs, and fostering AI-driven education will play a crucial role in shaping the future of young Indians. Effective implementation and public-private collaboration will be key to transforming these initiatives into real impact.”

With these forward-looking measures, the Union Budget 2025-26 sets the foundation for an inclusive, technology-driven, and skill-oriented education system, while also empowering the middle class and driving economic resilience.