Over the last year, India’s education sector has undergone a decisive shift towards sustainable, outcomes-led growth, with sharper implementation of the National Education Policy (NEP) 2020 and a renewed focus on quality, global relevance, and institutional reform. Industry-aligned curricula, increased use of AI in learning, and the entry of international universities have strengthened India’s academic standing, reflected in 54 institutions featuring in global rankings and a steady expansion in medical education capacity.
As the Union Budget 2026 approaches, education leaders believe the next phase must move from intent to execution, addressing long-term funding, employability, teacher capacity, research, and global integration, while ensuring equitable access across regions.
Higher education scale, global relevance, and healthcare capacity
Setting the broader context for higher education reform, Vishal Anand, Founder & Pro Chancellor, Shoolini University, said, “The vision of NEP 2020 and Viksit Bharat rests on scale, quality, and global relevance in higher education. To move towards a 50% gross enrolment ratio, the sector will require sustained long-term investment of nearly USD 30 billion, supported by policy mechanisms that enable affordable, long-tenure funding and responsible access to capital markets for education institutions.
Equally critical is India’s role as a global talent engine. By enabling globally accredited skill programmes and internationally aligned certifications, the Budget can help position India as a skill exporter to the world while creating high-value employment pathways for our youth.
Strengthening medical and paramedical education, particularly in Tier-2 and Tier-3 regions, through targeted grants and infrastructure support for private institutions, will be essential to building a resilient healthcare workforce and advancing the inclusive development goals of Viksit Bharat.”
Funding outcomes, not just institutions
Building on the need for structural reform, Shreevats Jaipuria, Vice Chairman, Seth MR. Jaipuria Group, highlights a shift in how education should be financed and governed. “There is a strong opportunity to shift from funding inputs to funding outcomes, linking public spending to learning quality and workforce readiness,” he states, adding, “The NEP 2020 reforms and the Viksit Bharat Shiksha Adhikshan Bill create a more transparent, unified regulatory framework that can enhance institutional autonomy and crowd in greater private and philanthropic investment. If this is backed by higher spending on faculty capability, industry partnerships, and responsible use of digital and AI tools, it can bridge the gap between credentials and employability and translate education reform into real opportunities for India’s youth.”
Execution, primary education, and AI-led enablement
While policy intent is strong, execution remains the central challenge, according to Kunal Vasudeva, Managing Director and Co-founder, Indian School of Hospitality. “History offers no example of a nation achieving sustained prosperity without deep investment in education,”
he says, adding that, “Budget 2026 must place education in the everyday vocabulary of the country and give it a seat at the highest decision making table. This requires absolute priority over the next two decades, starting with a fundamental reset of primary education, particularly in rural India where outcomes remain uneven.”
Highlighting technology as a practical lever, he adds, “One practical lever is the development of indigenous AI tools that strengthen teachers’ everyday effectiveness and enable rural classrooms to meet the same functional standards as private schools. If India is serious about Viksit Bharat, this is the only credible path forward.”
School education, faculty capability, and classroom readiness
At the school level, the emphasis is on capability building rather than scheme proliferation. Preethi Rajeev Nair, Principal, CBSE, Lancers Army Schools, believes Budget 2026 should focus on execution fundamentals. “Institutional infrastructure, faculty training, and digital system integration must be treated as core investments. Many schools and higher education institutions still struggle to meet Outcome-Based Education requirements due to outdated facilities and fragmented Faculty Development Programmes.”
She adds, “Improved faculty capacity, technology-enabled classrooms, and applied STEM instruction directly raise instructional quality and student readiness,” and concludes, “Education is no longer symbolic spending, it is an execution tool. and Budget 2026 should fund it with that precision.”
Global partnerships and internationalisation
As Indian institutions expand their global footprint, international collaboration is becoming a key priority. Chaitanya Chitta, Regional Head India & South Asia, Cintana Education, says, “To foster a workforce for Industry 4.0 and change agents, universities and institutions must be empowered with conducive policies, strategic funding, and collaborative frameworks that enable them to collaborate with globally acclaimed institutions.”
He adds, “By strengthening partnerships, supporting dual-degree programs, and investing in student and faculty mobility, India can position its higher education sector at par with the world’s leading education systems.”
Teachers, vocational education, and AI integration
Shishir Jaipuria, Chairman, Jaipuria Group of Educational Institutions, underlines the foundational role of educators. “Education is one of the important sectors that creates the foundation of the talent pool which drives other sectors,” he says, adding that his biggest expectation is focused investment in professional development, “because empowered teachers elevate the standards of education more than anything else.”
He also calls for greater thrust on vocational education and notes that “the integration of AI within school systems should be encouraged with investments directed towards enhancing digital infrastructure, ensuring that the schools in rural areas and far-flung towns are not left behind.”
On public-private collaboration, he adds, “India’s march towards becoming a knowledge superpower and Viksit Bharat will be powered by the education sector. The Union Budget should reflect this ambition.”
Research, innovation, and equitable access
Looking ahead to research-led growth, Prof. Indranil Manna, Vice Chancellor, BIT Mesra, says, “Emphasis on funding for higher education, especially in emerging domains such as artificial intelligence, clean energy, and advanced manufacturing will be critical to building future-ready talent.”
He adds that continued support for incubation and collaboration can convert ideas into impact, noting, “Focused allocations for scholarships and skill development will help ensure equitable access to quality education across regions,” and stresses that private institutions must receive equal support given their growing role in India’s education landscape.
Education, employment, and economic stability
Linking education to broader economic outcomes, Prof. (Dr.) Daviender Narang, Director, Jaipuria Institute of Management, says, “Strengthening higher education, research, and industry–academia collaboration will be crucial for building a future-ready workforce.”
He adds that support for MSMEs, startups, and digital infrastructure can boost innovation and job creation, while “rational taxation and inflation control are essential to provide relief to the middle class and sustain consumption.”
Edtech, access, and global careers
Finally, reflecting on the role of technology and edtech, Ms. Anushika Jain, Founder & CEO, Globally Recruit and Global Shala, and Co-Founder, V-Empower Ventures, says the Budget offers a crucial opportunity to empower learners and innovators. “We expect to see announcements that encourage edtech platforms to expand access, reduce barriers, and deliver transformative learning experiences.”
She adds that tax incentives, funding for skill-building, and digital infrastructure support can create a strong growth environment, concluding that “by fostering collaboration between academia, industry, and government, the budget can lay the foundation for scalable solutions that prepare students for global careers.”
