Experts push for a shift from access to quality, urging higher Budget 2026 allocations for infrastructure, skills and employability.
Economic Survey flags skill gaps, with only 51–56% of Indian graduates considered industry-ready.
Pre-Budget recommendations call for spending up to 6% of GDP, expansion of digital education initiatives, EdTech incentives and wider scholarship coverage.
Ahead of the Union Budget 2026, education experts have called for a shift towards improving quality, infrastructure, and future-ready skills, PTI reported. With India’s youth population forming the largest demographic cohort globally, experts say strategic investment in higher education infrastructure and upskilling has become the need of the hour.
In the previous Budget, the education sector received an allocation of ₹1.28 lakh crore, up 6.22%, of which ₹50,077 crore was earmarked for higher education. According to the Economic Survey 2024–25, the number of higher education institutions rose by 13.8% over the past eight years, while the Gross Enrolment Ratio (GER) increased to 28.4% from 23.7%.
1 January 2026
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As per the PTI report, Dr PR Sodani of the Indian Institute of Health Management Research (IIHMR) University said higher public investment in education and healthcare was essential for human capital development. “Spending should focus on building skilled talent, digital transformation and institutional capacity,” he said. Sodani also highlighted the need for the Budget to prioritise infrastructure development, digital and multilingual education, and better preparation of students for a knowledge-driven economy.
“Access has expanded, but infrastructure such as laboratories, hostels and student facilities has not kept pace with enrolment growth,” said Pankaj Priya, deputy director and dean (academics) at BIMTECH. He added that priority should be given to capacity-building, research and employability.
The Economic Survey of India has flagged persistent skill gaps as a key contributor to unemployment, noting that only 51–56% of Indian graduates are considered employable by industry standards. This points to a structural weakness in the education and training ecosystem, where limited infrastructure and poor alignment with labour market needs have constrained effective upskilling and employability outcomes. Fiscal constraints remain a key challenge in addressing these gaps.
According to a pre-Budget preview by the PHD Chamber of Commerce and Industry, experts have suggested increased budgetary allocations, including raising education spending to at least 6% of GDP, in line with global benchmarks. Recommendations also include expanding funding for digital infrastructure under initiatives such as DIKSHA and SWAYAM, allocating funds to enhance broadband connectivity, and promoting and subsidising EdTech platforms to ensure inclusive access.
The pre-Budget expectations further call for tax incentives for EdTech startups and content providers, simplification of accreditation processes for educational institutions, and expansion of scholarship programmes, particularly for Scheduled Castes, Scheduled Tribes and Other Backward Classes.
