The Union Budget 2025 has been praised as a step towards building an inclusive and empowered India, aligning with the vision of Viksit Bharat 2047. However, the increase in the allocation for higher education by 5.16% to Rs 50,077.95 crore appears insufficient given the sector’s growing needs.
The budget sets aside Rs 20,000 crore to promote private sector-driven research and innovation and Rs 500 crore for establishing a Centre of Excellence in Artificial Intelligence for Education. Additionally, five new National Centres of Excellence for Skilling will be set up in collaboration with global institutions. The PM Research Fellowship Scheme also promises enhanced financial support to 10,000 researchers in IITs and IISc.
Despite the growth in the number of students in IITs, the budget offers only a modest increase in infrastructure expansion for the new IITs. Allocations for autonomous bodies in higher education have grown by 7.42%, with specific increases for UGC, IITs, and IIMs. However, Institutions of Eminence funding has seen a drastic reduction, and a significant portion of the allocation is earmarked for repaying loans.
While the overall allocation for higher education has grown by 5.61%, this increase barely keeps pace with inflation. The education budget’s share of GDP has dropped from 0.55% in 2014 to just 0.35% in 2025. The country must prioritize investment in higher education to fully capitalize on its demographic advantage before it’s too late.
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