Responding to the changing realities

The emphasis on employability, innovation, digital capability, and access suggests a conscious move to align education with emerging workforce and technology needs.

A significant highlight of the Budget is its clear focus on bridging education with employment and enterprise. The proposal to establish a high-level ‘Education-to-Employment’ and Enterprise Standing Committee reflects an acknowledgement of a gap that many in academia have observed for years that there is a disconnect between classroom learning and workplace expectations.

Union Budget 2026: Follow the highlights from February 1, 2026

If pursued with seriousness and collaboration, this initiative can help make curricula more relevant, strengthen industry linkages, and expand opportunities for internships, apprenticeships, and experiential learning.

Complementing this vision is the announcement of five new university townships near major industrial and logistics hubs. The very idea of physically integrating academic institutions with industry ecosystems is promising. Such clusters can foster research partnerships, skill development, innovation, and smoothen transitions from education to employment, particularly for students pursuing professional and technical programmes.

The push towards future-ready skills is another notable feature in the budget this year. Areas such as Artificial Intelligence, digital creativity, animation, gaming, and design are no longer niche domains. They are becoming mainstream career pathways. The proposal to set up AVGC (Animation, Visual Effects, Gaming and Comics) laboratories in schools and colleges has the potential to spark creativity and enable hands-on learning for the students from an early stage. Much will depend on how these initiatives are integrated into teaching and how prepared the educators are to guide students through these new learning spaces.

In terms of institutional expansion, the announcement of a new Design Institute in eastern India and seven new Ayurveda Institutes is noteworthy. Additionally, introduction of ten new allied health disciplines, with a plan to train one lakh professionals over the next five years, addresses a growing need for skilled manpower in healthcare and related services.

From the perspective of inclusion, the announcement of one girls’ hostel in every district stands out. For many young women, especially those from rural and economically weaker backgrounds, the lack of safe and affordable accommodation becomes a decisive barrier to continuing higher education. Improving residential facilities can play a meaningful role in enhancing female enrolment in colleges, professional courses, and STEM fields, while also reduce dropouts.

From a financial perspective, the Budget offers relief to students and their families through the rationalisation of tax provisions related to overseas education, thereby reducing the cost burden for those pursuing international studies.

When young women, especially those from rural areas or economically weaker backgrounds, pursue higher education, they should also be encouraged to become entrepreneurs. I find the focus on women’s economic participation encouraging in this regard. Introduction of SHE Marts, which are community-owned retail outlets for women entrepreneurs, reflects a shift towards enabling women to move from wage-based work to enterprise ownership. Such initiatives can strengthen grassroots entrepreneurship, enhance income stability, and support financial independence, particularly for women associated with Self-Help Groups.

At the same time, it is important to remain measured. While the policy direction is promising, the real impact of the Union Budget 2026 will depend on effective implementation, coordination between the Centre and the States, teacher preparedness, and continuous monitoring. Many of these ideas will only take shape once detailed guidelines and timelines are released.

In my view, the Union Budget 2026–27 sets a constructive direction. A clearer picture of its success will emerge as these initiatives move from announcement to action, and as institutions, educators, and communities start engaging in these initiatives on the ground.

(The writer is the Chairperson, GRG Educational Institutions, and former Chairperson, CII – Southern Region)

Published – February 01, 2026 11:51 pm IST