FM Proposes Key Education Announcements in Budget 2026
In her Budget 2026 address, Finance Minister Nirmala Sitharaman unveiled a series of initiatives designed to enhance India's education, skills, and creative economy landscape, with a key focus on addressing workforce needs, expanding higher education capacity, and enhancing opportunities for female students.
Highlighting the rapid growth projected in the animation, visual effects, gaming, and comics (AVGC) sector, the government emphasized the sector's anticipated demand for approximately 2 million professionals by 2030.
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To cater to this growing demand, the government announced plans to support the Indian Institute of Creative Technologies in Mumbai in establishing AVGC content creator laboratories in 15,000 secondary schools and 500 colleges nationwide. This strategic move aims to cultivate foundational skills and broaden the talent pool for the creative economy.
One girls’ hostel planned in every district
The finance minister has revealed a significant student welfare initiative which involves the establishment of a girls' hostel in each district through the viability gap funding (VGF) scheme.
“Long hours of study and laboratory work pose challenges for girl students, and under the VGF scheme, one girls’ hostel will be established in every district,” the finance minister said.
Five university townships near industrial corridors
The finance minister has announced plans to collaborate with states in establishing five university townships in proximity to key industrial and logistics corridors, with the aim of integrating higher education with the growing industrial and logistics sectors.
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These academic clusters will be home to a variety of educational institutions, including universities, colleges, research centers, and skill development facilities. They are anticipated to establish cohesive education ecosystems that are aligned with the specific needs of the local industry, stated Sitharaman.
New National Institute of Design planned for eastern India
In response to the increasing demand in the field of design, Sitharaman announced the establishment of a new National Institute of Design in eastern India through a competitive selection process. The primary goal of this proposed institute is to enhance design education and expertise in the region, as well as bridge the existing gaps in formal design training opportunities beyond established centers.
High-powered panel proposed to link education and jobs
The finance minister has additionally recommended the establishment of a prestigious permanent committee to enhance the connection between education, job opportunities, and business, with a specific emphasis on growth driven by services. "I suggest establishing a high-level 'Education to Employment and Enterprise' Standing Committee to provide recommendations on strategies that prioritize the services sector as a fundamental component of Viksit Bharat's development. This initiative aims to position us as a prominent player in the global services market, holding a 10 percent share by the year 2047," stated Sitharaman.
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The committee will focus on identifying key areas for enhancing growth, employment opportunities, and exports. Additionally, it will analyze the influence of emerging technologies such as artificial intelligence on employment trends and skill demands, and propose appropriate actions.