India's Union Budget 2025-26 has made significant strides toward bolstering the country's technological prowess and educational systems. Finance Minister Nirmala Sitharaman has unveiled ambitious plans to establish Centres of Excellence (CoE) for Artificial Intelligence (AI) within the education sector, backed by substantial financial allocations aimed at transforming India's educational and entrepreneurial landscapes.
The budget includes ₹500 crore designated for the establishment of the new AI CoE, which seeks to cultivate cutting-edge research and facilitate innovative applications within educational frameworks. This marks a prominent step forward as India aims to position itself as a global hub for technological advancement and education-driven globalization. Industry experts have responded favorably to these initiatives, emphasizing their potential to equip learners with the necessary expertise to navigate the increasingly interconnected global economy.
Alongside the AI CoE, the Union Budget also introduces the deeptech-focused Fund of Funds, with ₹20,000 crore earmarked for supporting private sector research and development (R&D) initiatives. This initiative aims to encourage the rapid growth of startups and innovation across diverse sectors, particularly those related to AI and deep technologies. Anand Sri Ganesh, CEO of NSRCEL, noted, “This ₹10,000 crore catalytic fund...should encourage greater VC participation, incentivizing them to raise and invest additional capital.”
The government is also emphasizing the importance of grassroots innovation, with plans to launch 50,000 Atal Tinkering Labs across schools, particularly targeting rural areas. This initiative aims to inspire creativity and problem-solving skills among students, providing them with early exposure to technology and fostering innovation from the ground up. Abhradeep Maiti, Associate Professor at IIM Kashipur, expressed enthusiasm about this initiative, stating, “The decision to set up 50,000 Atal Tinkering Labs will encourage innovation and entrepreneurship at the grassroots level.”
Further enhancing the educational framework, the government also plans to expand the PM Research Fellowship (PMRF) scheme to provide 10,000 fellowships over the next five years. This initiative aims to drive advanced technological research at prestigious institutions like the Indian Institutes of Technology (IITs) and the Indian Institute of Science (IISc). The fellowship opportunities are expected to attract bright minds toward academia and research, enhancing India's global competitiveness.
Discussion surrounding the budget reveals strong support across various sectors. Professor V. Kamakoti, Director of IIT Madras, praised the budget for launching initiatives such as the “Pustak Yojana,” which will provide high-quality STEM books in regional languages to widen access to education.
Meanwhile, educational consultants and industry leaders stress the need for these ambitious plans to translate effectively to real-world applications. Amitabh Jhingan, Partner at EY-Parthenon India, highlighted how the focus on education and skilling within the latest budget characterizes these sectors as areas for investment rather than mere expenditure. “Budget 2025 has called out Education and Skilling as key areas of Investment rather than Expenditure...” he noted.
The urgency of bridging the skills gap is underscored with the declaration by the All India Council for Technical Education (AICTE) naming 2025 the “Year of Artificial Intelligence.” This initiative reflects India's commitment to cultivating AI capabilities within its workforce to mitigate youth unemployment challenges and prepare the upcoming generations adequately.
With this backdrop, uLektz Learning Solutions also announced the launch of uLektz.com, envisioned as the homegrown alternative to global platforms like LinkedIn, designated for students seeking industry connections, skill development, and job opportunities. “Simply providing thousands of skill courses to students is not enough. They need industry connections and mentorship to industry awareness,” said Sadiq Sait, Founder and CEO of uLektz.
Notably, the broader societal impact of these policy measures points toward fostering inclusivity and accessibility for students across India, particularly those from underserved regions. Educational leaders and experts are optimistic; they believe initiatives like AI-driven learning systems and increased broadband access to rural schools will bridge existing divides and encourage educational advancements nationwide.
With such comprehensive reforms embodied within Budget 2025, India is positioning itself as not just another player on the global stage but as a leader ready to tackle the associated challenges of the digital age. Industry leaders concur; transforming this ambitious vision of enhanced skills and AI-driven education from policy on paper to tangible outcomes will dictate India's potential intersecting with the global economy. The commitment to technological infrastructure combined with grassroots initiatives marks the dawn of what may signal India’s era of innovation, particularly within education and beyond.
Investment and commitment from both the government and private sectors will be pivotal; only time will tell how effectively these ambitious plans will be executed. Nevertheless, as we stand at the threshold of this new era, stakeholders are eagerly anticipating the positive changes these initiatives might usher in, paving the way for India's long-term prosperity and success within the global digital economy.