Budget 2025: Will India’s education system finally get the transformative reforms it deserves?

As India prepares for the Union Budget 2025, the education sector is abuzz with expectations of transformative reforms. From enhancing digital infrastructure to addressing funding gaps, stakeholders are hopeful that this year's budget will set the stage for a future-ready education system. The Finance Minister, Nirmala Sitharaman, will deliver her eighth Budget speech on February 1, 2025, and the sector is keenly awaiting announcements that could shape the landscape of Indian education for years to come.
The education sector’s demands are multi-faceted, with a strong emphasis on integrating technology, increasing public funding, and improving access to higher education. As the Union Budget approaches, educationists, industry leaders, and institutions alike have shared their expectations, emphasising the need for policies that align with global educational trends while addressing the unique challenges faced by India’s diverse education ecosystem.
Strengthening Digital Learning and Infrastructure
One of the most pressing demands from the education sector is continued investment in digital learning. The Union Budget 2024 saw a significant allocation of Rs 1.12 lakh crore to education, with a focus on digital learning, virtual labs, and the Digital University initiative. Experts hope that this trend will continue in 2025, especially as the EdTech sector continues to evolve at a rapid pace.
"India’s education system must align with global technological advancements, particularly in AI, machine learning, and data sciences. This requires substantial investments in digital infrastructure, from enhancing internet connectivity in rural areas to providing affordable devices for students," said Sumit Shukla, CEO of Scholars Merit Pvt Ltd. He further stressed the importance of updating curricula to include industry-relevant skills, particularly in areas like AI, cloud computing, and data visualisation. The need for hands-on training and internships in real-world settings was also highlighted as essential for preparing students for the fast-evolving job market.
Funding and Policy Reforms
While the focus on digital infrastructure is vital, funding remains one of the most crucial aspects of transforming the education sector. Institutions across the country have called for increased public spending and policy reforms to ensure the growth and accessibility of education.
"Last year's budget laid a crucial foundation by prioritizing skill development, increasing higher education funding, and focusing on making education more accessible through loan support. The Union Budget for 2024-25 allocated Rs 1.48 lakh crore for education, employment, and skill development, and offered financial assistance for loans up to Rs 10 lakh for higher education in domestic institutions. This was a welcome step and addressed some long-standing needs of the sector. However, we anticipate this year's budget to build upon this foundation with more targeted interventions. We believe a significant allocation of funds is needed to improve infrastructure, resources, and teacher training in government schools, ensuring quality education reaches every child," said Anil Kapasi, Co-Founder & Managing Director of Arihant Academy. He also emphasized the importance of supporting digital learning tools and platforms to bridge the digital divide and enhance the learning experience for students across India.
Pravesh Dudani, Founder and Chancellor of Medhavi Skills University, stated, “The Budget 2025 should not only bridge existing funding gaps but also propel us into the future by integrating next-generation technologies like AI, IoT, and robotics into mainstream curricula. By substantially increasing public spending on education and fostering robust industry-academia partnerships, we can build a globally competitive, job-ready workforce.”
The focus on making education more affordable is also gaining momentum. “Educational loans need to be made more accessible to students from weaker economic backgrounds. Moreover, more funding should be allocated to areas like STEM research and industry-focused skills development,” noted Kuldip Sarma, Pro-Chancellor and Co-Founder of Medhavi Skills University.
Reforms in Higher Education and Research
There is a growing consensus that the Union Budget 2025 must focus on enhancing higher education and research infrastructure. The National Education Policy (NEP) 2020 provided a broad framework for educational reforms, but its timely implementation is essential to make a tangible impact on the ground.
"We recommend allocating 6% of the total GDP to the education sector, forming strategic partnerships with the private sector to enhance the capacity development of STEM trainers, and in other fields. For India to become a knowledge economy, the emphasis on implementing and creating a mindset for research and development-related education should be a government priority." said Vishal Chiripal, Managing Director of Shanti Education Initiatives Ltd. He further recommended the government incentivize foreign universities to establish their base in India and collaborate with Indian institutions for mutual benefit.
Dr. B. Priestly Shan, Vice-Chancellor at Alliance University, shared his concerns: “While there was notable investment in school education in the previous budget, higher education faced significant cuts in funding, particularly in UGC grants. Public education spending remains far below the recommended 6% of GDP. For Budget 2025, the focus must shift to strengthening university infrastructure and fostering academia-industry collaborations.”
The creation of Centres of Excellence in advanced fields such as AI, aerospace, and innovation was another crucial demand. According to Abhay G Chebbi, Pro-Chancellor of Alliance University, these centres would serve as hubs for cutting-edge research, foster start-up ecosystems, and enhance India’s global standing in technology and innovation.
Inclusion and Accessibility
In addition to funding and infrastructure, there is a strong push for policies that make education more inclusive, particularly for underserved and rural populations. A major expectation from the sector is the introduction of initiatives aimed at reducing educational disparity by ensuring access to quality learning materials and opportunities in remote areas.
The integration of AI and machine learning into education is seen as an opportunity to personalise learning experiences and bridge gaps. Arpit Mittal, Founder and CEO of SpeakX, commented, “The Budget should prioritise AI in education, especially in language learning. AI-driven tools can make learning more accessible, particularly for students in rural areas, and enhance English proficiency while preserving regional languages."
Moreover, stakeholders are calling for the government to facilitate easier access to donations and grants from foreign sources. The current bureaucratic process for receiving funds is time-consuming and discourages foreign collaborations, which are essential for the internationalisation of the education system.
Addressing Digital Gaps and Skills Development
Anthony Fernandes, Founder of Shaalaa.com, added his perspective on digital infrastructure and skilling: “As we approach the Union Budget, key focus areas must include steps to empower education and bridge digital gaps. A reduction in GST on education services is essential to make quality learning more affordable and accessible, especially for middle-class families. Additionally, targeted investments in rural internet infrastructure are critical to bringing underserved communities into the digital economy, enabling them to participate in new-age learning and employment opportunities.”
He also stressed the importance of fostering vocational training platforms to address India’s growing skills gap. "Skilling initiatives, particularly in areas like digital literacy, green energy, and logistics, will drive employability and long-term economic growth," Fernandes concluded.
The Way Ahead
The education sector is hopeful that the Union Budget 2025 will be a game-changer, setting the course for a modern, inclusive, and global education system. Kalpesh Banker, Managing Partner at EduShine Partners, concluded, "The education sector is hoping for holistic reforms that integrate AI, ML, and automation to address real-world issues. We also expect initiatives that foster entrepreneurship, digital literacy, and hands-on learning, with enhanced allocations to bring about transformative changes."
As the education sector continues to evolve in response to global trends and technological advancements, the Union Budget 2025 has the potential to play a pivotal role in shaping the future of India’s educational landscape. The hope is that this budget will not only address current challenges but also lay the foundation for a more inclusive, accessible, and globally competitive education system.