Union Budget 2025 live: What education stakeholders are expecting from FM Nirmala Sitharaman

The previous budget had put adequate focus on enhancing higher education and skill development in India. The Skill India for instance was reported to have already trained more than 1.4 crore youth while upskilling and reskilling over 54 lakh others. The budget also mentioned about setting up new higher educational institutions, including IITs, IIITs, IIMs, AIIMS etc. We expect the coming budget to lay further emphasis on upgrading skill education across existing universities and institutions. A dedicated budget allocation to facilitate increased industry-academia partnership is the need of the hour. While it will encourage more institutions to integrate action & experiential learning in their education delivery model, it will enable the creation of valuable industry-ready workforce, which would be well acquainted with the requirements and challenges of respective industries by the time the curriculum is completed. Education is a fundamental pillar of nation building and thus, we expect the Union Budget to announce the highest ever allocation for the education sector, especially in the wake of India’s young population.

Prof Supriya Pattanayak, Vice Chancellor, Centurion University, Odisha

The education sector anticipates a major rise in budgetary allocation to reach the ideal of 6% of GDP. There is an expectation for the budget to support the expansion of digital learning platforms and hybrid learning models, to provide flexibility to students and make education more accessible. There is also a strong demand for investments in higher education institutions, particularly in research and development (R&D). Funding should be allowed through foreign investments and foreign currency loans and foreign donations to educational institutions with specific directions.

I would also like to see a reform in an important area. The services of educational institutions are exempt from GST, but whenever they procure something or avail services from a vendor, they are required to pay GST to the service provider, except for some services. The reverse charge mechanism is also applicable on educational institutions under the GST laws, which creates numerous legal requirements on institutions. The government should address this issue and provide relief to educational institutions for compliance with GST laws.

-CA Bikram Agarwal, Chief Financial Officer (CFO), Seth Anandram Jaipuria Group of Educational Institutions

"One of the most pressing expectations from the Union Budget 2025 is a substantial increase in the allocation for the education sector, enabling the government to address long-standing challenges. Reducing or eliminating GST on educational services and digital learning tools is another key demand.

The move would make education more affordable, ensuring quality education is accessible to students from diverse socio-economic backgrounds. The government is also expected to offer tax relief for corporate grants to educational institutions, thereby encouraging collaborations to improve infrastructure and research initiatives.

Additionally, Public-Private Partnerships (PPP) are likely to be prioritized in the upcoming budget to address infrastructure gaps and resource constraints in disadvantaged areas, fostering holistic growth. To achieve the objectives out in the National Education Policy (NEP), the budget is expected to prioritise expanding access to education in underserved regions, enhancing digital infrastructure, and advancing research in educational technology and pedagogy."

Nipun Goenka, Managing Director, GD Goenka Group

“Delivering quality education in India demands a comprehensive approach prioritising leadership at every stage, from policy formulation to classroom instruction. The upcoming Union Budget can play a pivotal role by investing in teacher empowerment through robust professional development programs. It will equip them with the skills to deliver holistic education, fostering critical thinking, collaboration, and problem-solving abilities among students. Simultaneously, ensuring every school is a safe and inclusive space for all children is paramount, with a strong focus on their mental and emotional well-being. This necessitates continued investment in quality infrastructure, coupled with recognising and valuing the contributions of teachers and school leaders through competitive salaries, professional growth opportunities, and improved working conditions. Furthermore, the budget can strategically integrate technology into the education system, leveraging its potential while mitigating the risks associated with social media and AI. Finally, reforming assessment practices to accurately measure students' progress in developing leadership qualities, collaborative skills, and 21st-century competencies is crucial for ensuring that our education system effectively prepares students to thrive in the dynamic and interconnected world of the 21st century."

Shaheen Mistri, Founder & CEO, Teach For India

“India faces the critical challenge of providing access to quality education for millions of learners. Establishing world-class higher educational institutions requires substantial investment, which cannot be solely shouldered by the government. This calls for out-of-the-box solutions to bridge the resource gap. One transformative idea is to explore innovative funding avenues to accelerate quality research and innovation in higher education. Drawing from the success of advanced economies, robust funding mechanisms have proven instrumental in fostering academic and research ecosystems capable of undertaking transformative projects. To emulate this success, India could introduce stock market-linked instruments to empower Higher Education Institutions (HEIs) to raise funds. Education bonds, research-linked securities, or similar financial instruments could incentivize both public and private investors to support the education sector. If implemented, such measures could significantly enhance gross national spending on education and research, aligning India with global benchmarks and advancing the vision of a knowledge-driven economy. These reforms would not only bridge the resource gap but also lay a strong foundation for fostering innovation and excellence across India’s HEIs.”

Ram Sharma, Vice Chancellor, UPES University

“As India aspires to establish itself as a global leader in education, sports, and innovation, the forthcoming Union Budget represents a pivotal opportunity to accelerate transformative progress across these critical sectors. Foremost, a significant allocation toward the development of world-class sporting infrastructure at universities is essential. This strategic investment will not only enhance India's preparedness to host the Youth Olympics 2030 and the Olympics 2036 but also foster a culture of fitness and athletic excellence among the nation's youth. By enabling students to pursue sports alongside academics, such initiatives align seamlessly with the vision of a healthier, more competitive India.

Furthermore, augmented funding through the Department of Science and Technology (DST) is indispensable for establishing Centers of Excellence in advanced domains such as Artificial Intelligence, Aerospace, and Innovation. These centres will serve as catalysts for groundbreaking research, stimulate an ecosystem conducive to start-up growth, and cement India’s leadership in technological innovation on the global stage.

Equally vital is the introduction of incentives for existing universities and educational institutions to create Distinguished Skill Universities. These institutions will address the critical skill gap by equipping the next generation with industry-relevant expertise, thereby driving employment opportunities and enhancing India's competitiveness in the international arena. A visionary budget that prioritizes these initiatives will serve as a cornerstone for India’s emergence as an economic and educational superpower in the 21st century."

Abhay G Chebbi, Pro-Chancellor, Alliance University

“As our Finance Minister prepares to present Budget 2025, it’s important to remember that our journey towards a $5 trillion economy in the next three years relies heavily on India’s young demographic. It’s laudable how the government has invested heavily in skill development and the pioneering One Nation One Subscription initiative, emphasising the need to bridge the skill-employability gap and democratise access to research, respectively.

We believe strategic investments and robust public-private partnerships in skill development will further bridge the gaps and meet the demands of future workforce. The demand for 6 per cent GDP allocation to education under NEP is another step that the government needs to consider for an educational revolution, particularly with the need for teacher training, enhanced learning resources to impart future skills and the development of future-ready learners.”-

Arun Rajamani, Managing Director of Cambridge University Press & Assessment, South Asia.

Allocating 6% of the total budget to education is not merely a figure; it represents a commitment to building a knowledgeable and skilled workforce that can drive innovation and sustainable growth in the country.

This level of investment could significantly enhance the quality of education, ensuring access to modern teaching resources, training for educators, and improved school infrastructure, particularly in rural and underserved areas.

Adequate funding can foster vocational training programs that equip students with practical skills aligned with industry needs, thereby reducing unemployment and empowering the youth.

In an era where knowledge is power, an education sector robustly supported through budgetary allocations can truly transform lives and drive progress across the nation.

- Dr. Maithili Tambe, CEO of The Academy School (TAS), Pune

The 2025-26 Budget must prioritize measures to empower private higher education institutions (HEIs) in India, ensuring enhanced quality, accessibility, and innovation. These recommendations align with India's goal of becoming a global education hub by 2047.

Global Collaborations and Partnerships should be supported through financial incentives to foster tie-ups with top global universities, enabling student exchange, joint research, and faculty development. This will enhance global exposure and improve academic standards. Expanding private HEIs to Tier-2 and Tier-3 cities should also be incentivized with land grants and tax benefits to decentralize quality education, promote regional development, and curb urban migration.

Funding must be allocated for private HEIs to achieve national and international accreditations, bolstering credibility and attracting global talent. Alumni Contributions should be encouraged through higher tax benefits for donations, creating a sustainable funding model. Additionally, the establishment of a higher education financing agency offering long-term, low-cost loans can facilitate infrastructure development and capital investments without overburdening operational budgets.

Inclusivity can be advanced by implementing a matching grant scheme where the government matches scholarships provided by private HEIs for meritorious and disadvantaged students. This would ease the financial burden on institutions while ensuring access to education.

Industry-academia collaboration must be incentivized with tax rebates for industries partnering with private HEIs on research, internships, and skill development. Grants for faculty development are crucial to enhance teaching quality and retain talented educators.

To encourage philanthropic contributions, the tax deduction limit for donations to private HEIs should be increased, boosting institutional funding and reducing reliance on tuition fees. Digital Transformation should be accelerated with grants for AI-driven learning platforms, virtual labs, and smart classrooms, modernizing education delivery for the digital economy.

A national campaign to promote endowment building through matching grants and tax exemptions can foster financial sustainability. A government-backed innovation fund will support private HEIs in developing academic programs, online platforms, and entrepreneurial ecosystems, fostering innovation and commercialization. Lastly, grants or tax benefits should be offered for green and sustainable campuses investing in renewable energy and eco-friendly infrastructure, aligning education with global sustainability goals.

These measures will enable private HEIs to play a transformative role in India’s higher education sector, contributing significantly to the nation’s economic growth and global competitiveness and realizing the vision of Viksit Bharat by 2047.

-Dr. Ramakrishnan Raman, Vice Chancellor of Symbiosis International (Deemed University)

Prateek Maheshwari, Co-Founder of Physicswallah (PW) said, “Students that hail from Below Poverty Line (BPL) and Low Income Group (LIG) families should receive 100% GST exemption from all educational expenses, be it test-prep courses or job-oriented skill courses; as it takes away a significant portion of their net disposable income.”

“The 18% tax slab on higher or online education including skilling is extremely high. In other countries like Switzerland, education services are free irrespective of mode or type of education service while even in a country like China, it stands at 6 percent,” Maheshwari pointed out.

He further added, “On one hand, the government aims to increase the GER in higher education to 50 percent by 2035, and on the other such high tax rates create barriers to access that discourage learners. Another important step to creating affordable degrees is rationalisation in interest rates of student loans and interest-free loans for economically disadvantaged students.”

Devyani Jaipuria, Pro- Vice Chairperson at DPS International Gurugram, DPS Sector 45 Gurugram & DPS Jaipur said, “Given the current economic climate and the urgent need for educational reform, we eagerly anticipate the upcoming budget to prioritize substantial increases in funding for education."

She added, “We strongly advocate for the government to aim for a significant allocation boost, particularly for higher education institutions. Enhancing infrastructure, bolstering research capabilities, and ensuring overall educational quality are critical for our nation's growth trajectory. We hope to see a commitment towards achieving an adequate allocation of GDP to education, paving the way for transformative reforms and the establishment of new educational institutions, especially in the K-12 segment.”

Piyush Kumar Regional, Director- South Asia, Canada, Latin America and Mauritius, IDP Education said, “We hope the government spending on education, especially foreign education goes up in alignment with India’s development goals. Education forms the basis of a developed economy. Over the past decades, the government has taken some incredible steps to increase literacy and gross enrolment ratios. We anticipate the government extending that focus to the foreign education sector as well, directly impacting the working population and creating a globally competitive population.”

“We hope the budget takes into account the aspirations of students entering the higher education arena. We have seen a growing demand from students to gain knowledge from the world’s top-ranked universities, driving the trend for studying abroad. The demand is not only coming from urban centres but also from smaller towns.”

"To support the aspirations of such students, the Union Budget 2025 could announce policies to remove financial barriers by facilitating easier and more economical education loans, reducing remittance fees, and instituting more scholarships. These measures will empower students, foster a skilled workforce, and fuel India’s development goals.”

Govind Narayan Singh, Secretary at Gopal Narayan Singh University said that the future of millions of young Indians depends on a robust education system that equips them with the skills needed to succeed in today’s rapidly changing job market.

He stated, “The government’s focus will likely be on improving the quality of higher education, making it more accessible, and ensuring that it is aligned with the needs of industries. This will not only help in addressing the unemployment crisis but also position India as a leader in global talent development.”

He added, “With millions of young graduates entering the workforce every year, the need for a system that prepares students for real-world challenges has never been more urgent. The government’s role in this transformation will be crucial. By increasing investment in both public and private institutions, the government can ensure that universities and colleges are better equipped to provide high-quality education. Increased funding could improve teaching facilities, enhance the recruitment of experienced faculty members, and provide students with access to cutting-edge research opportunities. This would not only uplift the university but also ensure that students receive a quality education that meets global standards.”

“Such investments can help institutions like GNU produce graduates who are well-equipped to enter the workforce and contribute to the country’s economy," he said.

According to Govind Narayan Singh the need for an education system that fosters skill development and job readiness is becoming more critical than ever.

“As the government prepares for Budget 2025, focusing on education and employment will be key to ensuring the country’s long-term growth and stability,” he said.

Dr. Tom Joseph, Co-Founder of USDC Global says, “With technology playing a pivotal role in India's education sector, the 2025 Union Budget must prioritize key areas to enhance digital learning nationwide. Increased funding is needed to improve rural digital infrastructure, internet access, faculty training, and research. Sustained investment in AI is essential as AI-driven personalized learning can bridge skill gaps.”

Dr Joseph added, “Simplified regulations for EdTech startups, industry-academia collaborations, and AI-driven language learning initiatives will foster innovation while ensuring data privacy. Lowering GST on educational services from 18% to 5% would make learning more accessible, especially for underprivileged communities.”

“To expand globally, Indian EdTech firms need relaxed cross-border regulations addressing FEMA restrictions, visa policies, and currency fluctuations. Encouraging foreign universities to establish campuses in India, in line with NEP 2020, will enhance higher education quality and create opportunities for EdTech companies to scale. Adapting to rising demand, these firms must offer cutting-edge solutions to a diverse student base,” he said.

Dr Partha Chatterjee, Dean of Academics and Professor of Economics, Shiv Nadar University, Delhi NCR: “India has one of the largest populations of young people. Almost 40% of the population is less than 25, or at an age where they could be in education. To educate this large number, several steps need to be taken. This is critical if India has to achieve developed economic status by the time the demographic transition is over. It is obvious that the education and research budget has to go up – right now at 2.9% of GDP there is a lot of room for this funding to grow. Over the last few budgets skilling was prioritised. However, it is not clear what that investment in skilling has delivered. If India cannot build a solid education system, mere skilling will not help.

NEP has laid down an ambitious plan for higher education. In this budget, funds need to be allocated to support some of those initiatives. Funds also need to be allocated to help universities and colleges transform themselves into truly multidisciplinary institutions. To ensure we do well in research and have faculty members to teach this large population, much more funding needs to be channelled toward Phd scholarships.

The budget should also take steps to ensure more private funding. This will include enabling the Higher Education Financing Agency to provide loans to private universities.

Ankit Aggarwal, Founder & CEO of Unstop: With the Budget coming up, we believe there will be movement in the skill development and entrepreneurship industry. The Confederation of Indian Industry has proposed the formulation of a comprehensive National Employment Policy. This aims to consolidate various employment generating schemes across ministries and states that will enhance the focus on job creation. We feel there may be an increase in measures to boost female participation in the workforce through policy support for flexible work arrangements and incentives for organisations promoting gender diversity.

India’s employment and HRTech sectors will grow and this will be driven by emerging technologies. We feel there will be a 20% increase in the job market because of fields like AI, machine learning, and cybersecurity, alongside sector-specific hiring opportunities. Skills-based hiring is the need of the hour and this is why programs like Skill India Digital will play a crucial role in preparing the youth for the digital economy. What is also important is aligning the student’s skills with the requirements of the industry. We hope there will be a continued support for entrepreneurship, through increased investment in sectors like AI and IoT and the simplification of regulatory processes, will create a more conducive environment for startups, encouraging innovation and job creation.

There’s a strong possibility that more funds will be allocated to skilling initiatives, building on the government's previous efforts for 41 million individuals and the INR 4520 crore allocated to the Ministry of Skill Development and Entrepreneurship. We anticipate an increase in this year’s allocation to further boost skill development and job creation, with a greater focus on state-wise distribution of funds.

The key trends we see in 2025 will be AI driven recruitment and workforce planning along with AI tools streamlining hiring, reducing biases, and enhancing HR functions through predictive analytics and task automation. Skills based hiring will take the spotlight as employers will prioritize skills over traditional qualifications.

Professor Ramgopal Rao, Vice-Chancellor, BITS Pilani: "The Union Budget 2025 presents a pivotal opportunity to address some of the chronic challenges facing India’s higher education sector. With over 800,000 students expected to travel abroad for higher education in 2025, costing Indian households nearly USD 70 billion, it’s imperative for India to focus on creating world-class educational institutions at home. Increasing budgetary allocations for higher education is essential to enhance accessibility, equity, and excellence, helping us move closer to the National Education Policy (NEP) 2020 goal of a 50% Gross Enrollment Ratio (GER).

To stem the ongoing brain drain, we need strategic investments to make Indian universities globally competitive. This includes funding for Indian institutions to establish overseas campuses, granting them greater autonomy in administration and recruitment, and adopting outcome-based funding models tied to research and innovation output. A strong research ecosystem, supported by substantial grants and philanthropic incentives, is critical. Moreover, improving faculty quality by recruiting and retaining highly skilled educators across institutions will help bridge the gap between elite and Tier-2 colleges.

By empowering institutions to innovate and expand without bureaucratic hurdles, the government can create an inclusive and dynamic higher education landscape that retains top talent and propels India into the league of global education powerhouses."