Education experts across India are raising their voices as the Union Budget 2026 approaches. They have a clear message for the government: it's time to move beyond simply increasing student numbers. The focus must shift decisively toward enhancing quality, building robust infrastructure, and developing future-ready skills.
Harnessing India's Demographic Dividend
These experts emphasize a crucial national opportunity. India possesses the world's second-largest education system, with nearly 40 percent of its population under the age of 25. This young demographic is a powerful asset, but only if properly equipped. The fast-growing higher education sector must be leveraged to build strong human capital for the nation's future.
Learning from Past Allocations
The previous Union Budget allocated Rs 1.28 lakh crore to the education sector. This marked a 6.22 percent increase from the year before. Within this total, Rs 50,077.95 crore was specifically earmarked for higher education. While this funding is significant, experts argue that how it is spent matters more than the amount.
Recent data from the Economic Survey 2024-25 illustrates the sector's expansion. Over the past eight years, the number of higher education institutions has grown by 13.8 percent. Simultaneously, the Gross Enrolment Ratio has climbed from 23.7 percent to 28.4 percent. This growth in access is undeniable, but it has created new challenges.
A Call for Strategic Investment
Dr. PR Sodani, President of the Indian Institute of Health Management Research (IIHMR) University, stresses the importance of higher public investment. He states that spending in education and healthcare is fundamental for developing the nation's human resources. However, he advocates for strategic priorities.
Dr. Sodani believes Budget 2026 should concentrate on three key areas:
- Skill development programs that match industry needs.
- Digital transformation across educational institutions.
- Strengthening the core capacity of institutions.
He views the upcoming budget as a potential turning point. A focus on upgrading physical infrastructure, promoting digital and multilingual education, and preparing students for a knowledge-driven economy could set a new course.
Bridging the Infrastructure Gap
Pankaj Priya, Deputy Director and Dean (Academics) at BIMTECH, highlights a critical disconnect. While access to higher education has expanded, the physical infrastructure has failed to keep pace with rising enrollments. He points to significant gaps in essential facilities.
"Laboratories, hostels, and basic student amenities are often inadequate," Priya notes. He argues that the upcoming Budget must place a much greater emphasis on capacity-building, fostering deep research, and improving graduate employability.
Priya is clear about the path forward. "The next phase of reform cannot be about more of the same. It must pivot decisively toward quality, deep research capacity, and strong employability outcomes. Simply expanding access is no longer enough."
Aligning Education with the Future
A recurring theme among experts is the need to modernize curricula. Priya strongly stresses aligning academic programs with emerging technologies. This includes integrating subjects like generative artificial intelligence and machine learning into standard coursework.
This push for technological alignment is seen as essential for fulfilling the ambitious goals outlined in the National Education Policy 2020. The policy envisions an education system that prepares students not just for today's jobs, but for the economy of tomorrow.
As the government prepares its financial blueprint for 2026, the education community is watching closely. The consensus is clear: strategic investment in quality, infrastructure, and relevant skills will determine whether India can truly harness the potential of its young population.
