“An investment in knowledge pays the best interest.” - Benjamin Franklin.
India has ~65% of its population below 35 years, and therefore, our country is often called a young nation. This young community holds the potential to build a strong economic, social, moral and cultural fabric of the nation, and therefore, investing in education will play a crucial role. The Union Budget 2025-26 is an annual financial statement of the government’s estimated receipts and expenditures. Let’s discover how this union budget will impact the students.

Key highlights:

• Skilling
• Information Technology (IT)
• Artificial Intelligence (AI)
• Government Education Spending
• Schools

Education Budget 2025

The Union budget also focuses on the education sector. So, this year’s education budget or national budget for education, i.e., education-related budget, has introduced various schemes that will benefit the students.

Skilling

Skilling, upskilling, and reskilling are essential for continuous learning, which will enhance competence and enable the students to be relevant in the emerging job market. Therefore, the education sector budget has announced 5 National Centres of Excellence for Skilling supporting initiatives such as Make in India. These centres will be dedicated to partnering with industry experts to introduce innovative study resources, train the faculty members and develop a certification framework.

Information Technology (IT)

You will be amazed to know that in the last decade, the number of IT aspirants has increased by a whopping 100% in 23 IITs. Therefore, the education budget 2025 will focus on building infrastructure in 5 IITs so they can accommodate 6,500 more students. The 5 IITs include IIT Palakkad, IIT Dharwad, IIT Jammu, IIT Bhilai, and IIT Tirupati.

Furthermore, under the PM Research Fellowship scheme, 10,000 fellowships will be available in the next 5 years at various IITs and the Indian Institute of Science (IISc). This scheme has been allocated INR 600 crore, which has increased from INR 350 crore allotted last year.

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Also Read: What Students Must Know About the Budget 2024-25

Artificial Intelligence (AI)

As per the education budget, a new Centre of Excellence (CoE) in AI will be set up in Bihar in addition to the National Institute of Food Technology, Entrepreneurship, and Management. INR 500 crore is allocated for these centres.

Government Education Spending

The education budget 2025 has assigned INR 1.28 lakh crore to the education sector compared to INR 1.20 lakh crore in 2024. The education sector budget, especially for higher studies, has increased from INR 47,619 crore in 2024 to INR 50,067 crore in 2025. Meanwhile, for school education, funds allocation will increase from 73,008 crore in 2024 to 78,572 crore in 2025.

Government education spending for Indian Knowledge Systems will be INR 50 crore this year, which was earlier 10 crore. Moreover, the National Apprenticeship Training Scheme will be allotted 1178 crore this year as compared to INR 600 crore in 2024. IITs have been allotted INR 1,025 crore in 2025.

Also Read: What Every Student Must Know About Union Budget 2023

Schools

When it comes to schools, budget and education are crucial aspects. Thus, the education budget 2025 will allow INR 55 crore this year for the Pradhan Mantri Innovative Learning Programme. This programme is designed to identify and support talented students in India.

Atal Tinkering Labs (ATLs) are workplaces in schools where students can experiment with science, technology, engineering, and math (STEM) concepts. Government schools will witness 50,000 ATLs in the next 5 years. This will enable students to access tools and technologies such as 3D printers.

Moreover, the education budget 2025 has also made a provision for government secondary schools to receive broadband connection under the BharatNet project. This will encourage the students to access online learning modules. Also, the Bharatiya Bhasha Pustak scheme will be introduced to provide digital study resources to schools and higher educational institutions.

Every student must have access to quality education, and therefore, many aspirants turn to education loans to finance their studies independently. The budget and student loans will play a crucial role in supporting millions of students in fulfilling their academic aspirations

At Avanse Financial Services, we offer student loans with benefits such as 100% finance, quick loan sanctions, and flexible repayment options. Whether you want to opt for an abroad study loan or an education loan to study in India, we offer education financing solutions for several courses. You can use our Education Loan EMI Calculator to calculate education loan EMI. If you have any queries, please remember we are just a call away.