Education Budget 2026 Highlights: Key Announcements, Ayurveda Institutes, Townships, AI Schemes & What Changes for Students

Union Finance Minister Nirmala Sitharaman has presented her ninth budget today, February 1, 2026. The finance minister highlighted that the 2026 Union Budget is driven by the youth, calling it ‘Yuva Shakti’ with several innovation proposals coming from the young changemakers under the Viksit Bharat initiative. 

The Finance Minister has announced upgrades to several institutions, along with a focus on AI learning, tourism, hostels for girls, etc. Check here the highlights of the budget and the economic survey of 2025. 

What Did the Economic Survey 2025 Point At?

The Economic Survey conducted for 2025-26 pointed towards the challenges faced in school education. Although enrollment at the school level is close to universal, the same has not translated into consistent learning outcomes, especially beyond elementary classes. As per the survey, the net enrollment rate dropped sharply at the secondary level, at just over 52%. 

The survey also adds that the number of educational institutions has grown from 51,534 to 70,018 as of June 2025, which has improved access across the country. The expansion also includes a rise in universities and colleges.

It was also noted that significant growth has been achieved in premier institutions over the past decade. The country now has 23 IITs, 21 IIMs and 20 AIIMS aling with two international IIT campuses in Zanzibar and Abu Dhabi.

India runs one of the world’s largest school systems with 24.69 crore students enrolled across 14.71 lakh schools with over 1.01 crore teachers. Government schools take up 69% of all institutions, catering to half of the total enrollment. Private schools account for 26% of schools and 41% of student enrollment. 

Education Budget 2026: Schemes Announced

Union Finance Minister Nirmala Sitharaman has announced key provisions for the Education Sector in the Union Budget 2026. Check here the key highlights of the budget.

• BioPharma Shakti - Strategy for Health Advancements through knowledge, technology and innovations. 10,000 Crore to be allotted over the next 5 years, with 3 new National Institutes of Pharmaceutical Education and Research (NIPER) and upgrading 7 existing ones.

• Corporate Mitras: Government will support ICAI, ICSI, and ICMAI to design short-term module courses and practical tools to be developed in Tier 2 and Tier 3 towns

• High-Powered ‘Education to Employment and Enterprise’ Standing Committee to be formed to recommend measures that focus on the Services Sector as a core driver of Viksit Bharat

I propose to set up a High-Powered ‘Education to Employment and Enterprise’ Standing Committee to recommend measures that focus on the Services Sector as a core driver of Viksit Bharat. This will make us a global leader in services, with a 10% global share by 2047. The Committee… pic.twitter.com/xM9SLn2a0M

— Ministry of Finance (@FinMinIndia) February 1, 2026

• Emerging Technologies Including AI: Government will support new technologies through the AI Mission, the National Quantum Mission, the National Research Fundand Research and Development and Innovation fund.

• 3 new All India Institutes of Ayurveda proposed to provide training to 1.5 lakh caregivers for wellness and yoga services.

• 10 new Allied Health Disciplines like Optometry, Anaesthesia, Applied Psychology and Behavioural Health to be established to train 1 lakh allied health professionals over the next 5 years.

• Government to set up Animation, Visual Effects, Gaming and Comics content creator labs across 1,500 secondary schools and 500 colleges, aiming to strengthen creative and digital skills among students.

• Five university townships to be created near major industrial and logistics centres, bringing together universities, colleges, residential facilities, and advanced research infrastructure to better align education with industry needs.

• One girls’ hostel will be established in every district across the country to improve access to education and promote higher education among girls.

• Schemes to support states in establishing five Regional Medical Hubs in partnership with the private sector. AYUSH Centres, Medical Value Tourism Facilitation Centres and infrastructure for Diagnostic post-care and rehabilitation. 

Union Finance Minister Smt. @nsitharaman proposed to expand economy through strengthening medical, heritage and cultural tourism.#ViksitBharatBudget pic.twitter.com/mzK68BXq53

— Ministry of Finance (@FinMinIndia) February 1, 2026

• The National Institute of Hospitality is to be established by upgrading the existing National Council for Hotel Management and Catering Technology. 

• Pilot scheme to be launched to train 10,000 guides in 20 iconic tourist sites through a standardised high qualify 12 week training course in hybrid mode in collaboration with IIMs

• Government to establish a new national mental health institute similar to NIMHANS in North India and upgrade the existing mental health institute in Ranchi

•  Upgrades announced to key telescope infrastructure, including the National Large Optical Infrared Telescope and the Himalayan Chandra Telescope