Education Budget 2025: Industry leaders react to AI, skilling and higher education boost

Education Budget 2025

The Union Budget 2025 has brought forth significant policy measures for the education sector, with a strong focus on artificial intelligence, skilling, entrepreneurship, and global talent mobility. Industry leaders and academic experts have weighed in on how these reforms will shape India's educational landscape and workforce development.

AI in Education: A Step Towards Future-Ready Learning

Prof. V. Kamakoti, Director, IIT Madras, said, "The Union Budget 2025 brings several transformative announcements for education, particularly benefiting youth and children. The establishment of 50,000 Atal Innovation Labs is a game-changer for fostering entrepreneurship and innovation. Expanding broadband connectivity in rural schools under ‘Vidya Shakti’ will significantly improve access to quality education. ‘Pustak Yojana’ will provide high-quality STEM books in regional languages, enhancing learning in mother tongues. The expansion of new-generation IITs ensures wider access to top-tier education. The launch of PM Research Fellowship (PMRF) 2.0, alongside the Anusandhan National Research Foundation, will further strengthen India’s research ecosystem. These initiatives mark crucial steps toward ‘Vikshit Bharat 2047,’ and I sincerely thank the government for these forward-thinking decisions."

Kamlesh Vyas, Partner at Deloitte India, welcomed the government's plan to establish a Centre of Excellence (CoE) in AI for Education, emphasizing its potential to enhance personalized learning, assessments, curriculum design, and pedagogy.

"AI applications in education will not only help in faculty development but also provide analytics-driven policy-making support. This move will significantly modernize the Indian education sector," Vyas stated.

Amitabh Jhingan, Partner EY-Parthenon India and EY Global Education Sector Leader, said, "Budget 2025 has called out Education and Skilling as a key area of Investment rather than Expenditure, recognizing the transformative potential of human capital in India. Announcements around strengthening the Anganwadi program and Poshan 2.0, expanding capacity of IITs and Medical colleges, setting up world-class skilling centres, and creating a Centre of Excellence for AI in Education provide a balanced approach towards transforming education in India. The increase in allocation for education to Rs 1.28 lakh crore also indicates a clear intent to invest in the future of the youth in India and build a strong platform for Atmanirbhar Bharat."

Bridging Education and Entrepreneurship

Tarun Gangwar, COO of Tetr College of Business, lauded the budget’s dual emphasis on education and entrepreneurship.

"The CoE for AI in education is a crucial step in ensuring students don’t just learn about AI but actively build with it. This hands-on exposure will differentiate India's next generation of innovators," he noted.

He also praised the Fund of Funds supporting startups, calling it a "much-needed enabler for young founders." However, he urged for more inclusive fund distribution, noting that most funding is still concentrated in metro hubs, favoring elite institutions like IITs and IIMs, while promising talent in Tier 2 and 3 cities struggles for support.

Gaurav Bhagat, founder of Gaurav Bhagat Academy and leading skill trainer, highlighted the strong push towards AI-driven learning and infrastructure expansion.

"The Rs 500 crore allocation for AI institutes signals India's commitment to equipping students with future-ready skills, aligning with the global demand for AI expertise, which is expected to create over 11 million new jobs by 2030 (WEF). Expanding IIT capacity from 65,000 to 1.35 lakh seats is a game-changer, ensuring that more students gain access to world-class education. Additionally, the focus on broadband connectivity in rural schools and healthcare centers will bridge the digital divide, fostering inclusive learning opportunities. These reforms lay the foundation for a tech-driven, innovation-led education system. However, to maximize impact, the next step must be strengthening teacher training and industry collaborations to ensure students are job-ready in a rapidly evolving digital economy," Bhagat stated.

Praneet Mungali, Trustee & Secretary, Sanskriti Group Schools, said, "It is immensely encouraging to see Budget 2025 prioritize the strengthening of India’s STEM ecosystem. By investing in new infrastructure for the recently established IITs and expanding IIT Patna, the government will create opportunities for 6,500 students—significantly contributing to the pool of qualified professionals across emerging sectors. The plan to establish 50,000 Atal Tinkering Labs further underscores the commitment to cultivate innovation through promotion of STEM education nationwide. In addition, the focus on developing India’s indigenous AI capabilities marks a forward-thinking step. Allocating INR 500 crores to set up five Centres of Excellence for AI opens the door for students, researchers, and private enterprises to shape the country’s AI landscape. Overall, these initiatives are geared towards making India future-ready with focus on cutting-edge STEM education, and research."

Arun Prakash M, Founder and CEO of GUVI Geek Networks, believes the government’s emphasis on AI and upskilling will have a long-term favourable impact on Indian talents, "The growing emphasis on AI has been addressed well in the Union Government by inviting investments in AI for drug discovery. As India looks to advance its capabilities in AI, upskilling in relevant tech education will be imperative. The government’s decision to add broadband connections in government secondary schools to integrate digital learning, while also helping learners to understand the subjects better in their respective languages is commendable. Furthermore, the establishment of 5 national centres of excellence for upskilling to supplement Make for India and Make for the World will have long-term favourable implications on the future of millions of Indian talents, helping them to become critical contributors of the country’s bid to become a developed nation by 2047."

Transformative Reforms for a Viksit Bharat

Dr. Prabina Rajib, Director of BIMTECH Greater Noida, highlighted the budget’s alignment with India's vision of Viksit Bharat by 2047.

"Investments in AI, cloud computing, 5G, and cybersecurity will strengthen India's technological leadership. The establishment of three AI Centres of Excellence with Rs 500 crore funding will foster research, innovation, and skill development. Increased funding for educational infrastructure will create a future-ready workforce," she stated.

Gaurav Shah, Co-founder and Director, Indian School of Development Management (ISDM), said, "Finance Minister Nirmala Sitharaman’s eighth consecutive budget presents a bold vision for India’s education and skilling ecosystem, with a sharp focus on creating a future-ready workforce. Thrilled to see an increased focus on strengthening the research muscle in the country to position India as a thought leader in a variety of different areas. To make this happen it is important to visualize universities and higher educational institutions differently from the past and create more enabling frameworks for newer kinds of diverse universities to take shape which contribute to strengthening the 3 main sectors of change- government, markets and civil society. The establishment of National Centres of Excellence for Skilling in collaboration with global partners is a promising step towards equipping young Indians with the industry-relevant skills needed for the manufacturing and technology sectors. However, for India to truly capitalize on its demographic dividend, the social sector must play a pivotal role in ensuring these opportunities are accessible and affordable for all. Strengthening the social sector and enhancing Development Management capabilities will be crucial in scaling these initiatives to reach millions. By empowering the social sector to design and manage these transformative outcomes effectively, we can unlock the full potential of India’s youth and make a Viksit Bharat a reality."

Prof Rudra Pratap, Founding Vice-Chancellor, Plaksha University, emphasized the importance of AI in education.

"The biggest problem in India is delivering quality education to a very large population base. The Union Budget 2025 outlay of Rs 500 crore for Centre of Excellence for AI in Education will go a long way in addressing this. By integrating AI-driven tools into learning, this initiative will cultivate technological fluency, equipping students to think critically and solve real-world problems. Additionally, 50,000 Atal Tinkering Labs and broadband access in all secondary schools will ensure early exposure to emerging technologies, fostering grassroots innovation."

Skilling and Employability: A National Priority

Dr. PR Sodani, President of IIHMR University, emphasized the importance of the government's plan to establish five National Institutes for Skilling.

"This initiative will improve employability across sectors. The CoE for AI in education will also shape healthcare management professionals, integrating global advancements with India’s healthcare landscape. Moreover, the Rs 10,000 crore startup fund will bolster India’s startup ecosystem," he noted.

Dr. Yajulu Medury, Vice Chancellor of Mahindra University, added, "The National Centres of Excellence in AI and the establishment of 50,000 Atal Tinkering Labs will help students hone their skills in cutting-edge technologies towards achieving 'Make for India, make for the world.' The announcement of 10,000 scholarships dedicated to fostering innovation and research, along with a National Digital Repository for knowledge systems, will create a robust and future-ready education ecosystem."

Expanding Access to Global Education

Saurabh Arora, Founder & CEO of University Living, appreciated the budget’s revisions to the Tax Collected at Source (TCS) system under the Liberalized Remittance Scheme (LRS), which will ease the financial burden on Indian students studying abroad.

Alison Barrett, MBE, Country Director India, British Council, noted, "The creation of five National Centres of Excellence for Skilling and global skilling partnerships will equip young people with the expertise needed to thrive in an increasingly competitive world. The expansion of IIT infrastructure to accommodate 6,500 more students and the Rs 500 crore allocation for a Centre of Excellence for AI in Education are a step forward in nourishing India’s technical and digital capabilities."

Empowering the Gig Economy and Ed-Tech Innovations

Charan Lakkaraju, Founder & CEO of Student Tribe, highlighted the budget’s focus on gig workers and digital learning.

"Recognizing gig workers with identity cards, healthcare access, and financial inclusion measures will empower students pursuing freelancing and part-time work. AI-driven learning, Atal Tinkering Labs, and National Centres of Excellence for Skilling will prepare students for leadership roles in tomorrow’s workforce," he noted.

Jairaj Bhattacharya, Co-Founder & CEO of ConveGenius.AI, emphasized the role of AI in democratizing education.

"The Rs 500 crore CoE for AI in Education will accelerate innovation. Expanding broadband in schools and Atal Tinkering Labs will bridge digital divides. However, sustained execution and meaningful public-private partnerships will be crucial for long-term impact," he stated.

Prof Mahadeo Jaiswal, Director, IIM Sambalpur, said, "The Budget 2025 is visionary in enhancing India's higher education, women empowerment, and entrepreneurship as pillars of an inclusive, equitable, innovation-led economy. In this budget, Rs 500 crore for AI Centres of Excellence and the establishment of five national skilling centres have been put as strong commitments of the government. By providing and integrating AI into the education and skill development sectors, it ensures that students will be ready to meet emerging opportunities in all the sectors.

Additionally, the initiative to set up 50,000 Atal Tinkering Labs under the Budget 2025 is a transformative step towards fostering innovation and hands-on learning in science, technology, engineering, and mathematics (STEM). This will enable students to develop critical problem-solving skills, preparing a future-ready workforce in line with India's digital and technological aspirations.

IIMs, including IIM Sambalpur are working towards the vision by developing specialized STEM-based programs such as MBA in Business Analytics, AI in learning methodology, and Women Empowerment programs that help bridge technology and management so that students become leaders in the world of data-driven decision-making, Fintech, and AI-powered industries. I believe that by integrating STEM with management education, IIMs are preparing students for high-impact careers while driving India's goal of becoming a global innovation powerhouse."

Prof. Ram Kumar Kakani, Director, IIM Raipur said, Budget 2025 marks a pivotal moment for India's entrepreneurial and skilling ecosystem, setting the stage for a 'Viksit Bharat 2047.' With a fresh Rs 10,000 crore fund-of-funds for startups and a transformative scheme empowering 5 lakh SC/ST women entrepreneurs, the government is not just fueling innovation but also fostering inclusivity. These initiatives, coupled with enhanced lending ceilings for education and policies to attract global talent, will create a robust foundation for a future-ready workforce. By prioritizing skilling, entrepreneurship, and equitable access to opportunities, at IIM Raipur, we are 'Building Business Owners,' innovators, and skilled professionals who contribute to India's vision of becoming a global economic powerhouse. This is not just a budget for growth—it's a blueprint for a self-reliant, inclusive, and prosperous India by 2047.

Dr. Prabina Rajib, Director, Birla Institute of Management Technology (BIMTECH) Greater Noida, “highlighted that the Union Budget 2025 aims to drive transformative reforms across six domains, envisioning a Viksit Bharat with quality education, and affordable, comprehensive healthcare. She emphasized the budget's focus on inclusive growth and its potential to position India as a global leader in technology through investments in AI, cloud computing, 5G, and cybersecurity. The establishment of three AI Centres of Excellence, backed by Rs 500 crore, will advance research, innovation, and skill development, while increased funding for educational infrastructure will prepare a future-ready workforce. Additionally, micro-enterprises (up to Rs 1 crore investment, Rs 5 crore turnover) will benefit from doubled credit guarantees to Rs 10 crore, enabling Rs 1.5 lakh crore in additional credit over five years, alongside customised credit cards, while small and medium enterprises see expanded investment and turnover thresholds. This budget aligns with Atal Incubation Centre (AIC BIMTECH) mission to transform India’s startup ecosystem by providing unparalleled support and resources to entrepreneurs, fostering innovation, driving economic growth, and building a sustainable, thriving startup community for a better future.”

Nagesh Singh, Chairman, Edunet Foundation, "The Union Budget 2025-26 promises interventions aimed at bolstering education and skill development. We are encouraged to see initiatives that merge technology with learning. The Bharatiya Bhasha Pustak Scheme for digital Indian language books, the establishment of five new National Centres of Excellence for Skilling with global partnerships, expanded capacity at IITs, and the Rs 500 crore investment in a Centre of Excellence in AI for Education are all significant steps towards accessible, industry-relevant quality education. Now we look forward to the execution of these aspirations. Non-profits like us can, and are posed, to play a fundamental role in closing skill gaps, driving innovation, and providing equal access to future-ready education for all."

A Future-Ready Workforce: The Road Ahead

Dr. Sanjay Gupta, Vice Chancellor of World University of Design, emphasized AI’s role in creative industries.

"The Union Budget underscores the crucial role of AI and the need for upskilling, with the establishment of a National Centre of Excellence in AI being a pivotal step. This focus on AI will particularly benefit the design and creative sectors, propelling them to new heights and driving progress toward a 'Viksit Bharat.'"

Industry leaders agree that Budget 2025 lays a strong foundation for a future-ready workforce by prioritizing skilling, technology integration, and inclusive entrepreneurship. However, execution will be the key to ensuring these ambitious reforms translate into real impact, particularly for underserved regions and communities. With a structured approach to policy implementation and public-private collaboration, India's vision for a self-reliant, globally competitive education and skilling ecosystem could become a reality by 2047.