Education Budget 2025: Key Highlights and Focus Areas

Jaro Education
12, March 2025
4:00 pm

Education forms the bedrock on which development in any nation depends. Such is the case of India, which is comparable on the parameters of population, culture, and economy. The government has made education within its confines a priority, collecting a substantial share of its annual budget toward improving infrastructure and access and quality of education at all levels. To understand the education budget in India and its gradual transformation from this perspective, it is necessary, thus, to assess its educational progress.

*Jagran Josh

In this blog, we will delve into every aspect of the education budget of India: its percentage in the overall budget for India, trends seen over the past 10 years, and of course, the last entry in the education budget for the year 2025. Let us dive deeper and study how the Indian government places education at its priorities for the future.

Key Takeaways For Education Budget 2025

Posted On: 01 FEB 2025 9:15 PM by PIB Delhi

This is what the Union Minister of Education Shri Dharmendra Pradhan had to say about the Budget Education for 2025-26. It is everyone’s budget and it has welfare, well-being, and empowerment for any citizen in its view as it erects India on the path of a developed India in 2047. In sum, the Minister expressed his appreciation of the visionary futuristic Budget to Prime Minister Shri Narendra Modi and Finance Minister Smt. Nirmala Sitharaman.

Education Budget 2025: What to Expect?
Union Education Minister Lauds Historic Budget 2025-26 1. The Total Budget Allocation For The Ministry Of Education has reached 128,650 CRORE, marking a 6.22% increase over 2024-25. 2. 50,000 ATAL TINKERING LABS IN GOVERNMENT SCHOOLS in the next 5 years. 3. In the next three years, all government secondary schools will be given broadband connectivity under Bharat Net. 4. The Bharatiya Bhasha Pustak Scheme will provide Indian language books in digital form. 5. An allocation of Rs 20,000 crore will be made for the implementation of research, development, and innovation driven by the private sector. 6. For 2014 and after, the IITs have been set up to build new infrastructure to accommodate another 6,500 students. 7. Provision has been made for 10,000 fellowships for technological research in the IITs and IISC under the PM Research Fellowship scheme. 8. It also proposes 5 national centers of excellence for skilling to equip youth for "Make for India, Make for the World" manufacturing. 9. An initiative of a total of Rs 500 crores in this regard would be the Centre of Excellence in Artificial Intelligence for Education. 10. The 'Gyaan Bharatam Mission', meanwhile, is expected to secure more than Rs 1 crore of neglected manuscripts. A national digital repository of Indian knowledge systems is also proposed for knowledge sharing.

Education Budget 2025: What to Expect?

Union Education Minister Lauds Historic Budget 2025-26

1. The Total Budget Allocation For The Ministry Of Education has reached 128,650 CRORE, marking a 6.22% increase over 2024-25.

2. 50,000 ATAL TINKERING LABS IN GOVERNMENT SCHOOLS in the next 5 years.

3. In the next three years, all government secondary schools will be given broadband connectivity under Bharat Net.

4. The Bharatiya Bhasha Pustak Scheme will provide Indian language books in digital form.

5. An allocation of Rs 20,000 crore will be made for the implementation of research, development, and innovation driven by the private sector.

6. For 2014 and after, the IITs have been set up to build new infrastructure to accommodate another 6,500 students.

7. Provision has been made for 10,000 fellowships for technological research in the IITs and IISC under the PM Research Fellowship scheme.

8. It also proposes 5 national centers of excellence for skilling to equip youth for "Make for India, Make for the World" manufacturing.

9. An initiative of a total of Rs 500 crores in this regard would be the Centre of Excellence in Artificial Intelligence for Education.

10. The 'Gyaan Bharatam Mission', meanwhile, is expected to secure more than Rs 1 crore of neglected manuscripts. A national digital repository of Indian knowledge systems is also proposed for knowledge sharing.

Breakdown Of Education Budget 2025

According to Shri Dharmendra Pradhan, this budget intends to meet the entire range of requirements from childhood to represent those who would shoulder responsibilities in taking forward the Viksit Bharat vision into 2047 and beyond.

Today, under this Budget announcement, the youth demographic of India is concerned while forging ahead of the nation for the next 25 years. This will further bolster Bhartiya Gyan Parampara into our education system while enabling a global community.

Education Budget Highlights

- The Minister outlined that the Budget 2025-26 will be an encouragement to my people as well as facilitate the all-round development of India’s human capital investment.
- Jotted down the economies into “Gareeb, Yuva, Annadata, and Naari” in terms of principles.
- Further, he noted that such a budget would boost the sentiments of low-income populations and middle classes, fast-spend, catalyst investments, and spur growth.
- He emphasized it should remove regional imbalances, build up prosperity in rural areas, nurture research, innovation and entrepreneurship, invigorate the education and skilling landscape, and end up leading to employment-led development.

The Minister informed that the total budget for the Ministry of Education amounting to ₹128,650 crore marks a 6.22% increase over BE 2024-25.

Department of Higher Education, Ministry of Education

- In FY 2025-26, the total Budget Allocation stands at Rs. 50077.95 Cr, with ₹6990.88 Cr allocated to schemes and ₹43087.07 Cr, allocated to non-schemes.
- The overall budget allocation of the Department of Higher Education increased by ₹2458.18 Cr (5.16%) in the FY 2025-26 over FY 2024-25.

Allocations to Major Autonomous Bodies under Higher Education

- The total allocation for autonomous bodies for the year 2025-26 has been increased to ₹42732 Cr from ₹39777.40 in 2024-25. The increase in allocation is by 7.42%.

- Allocation to Central Universities has been kept at ₹16691.31 Cr as against ₹15928 Cr in 2024-25 which is ₹763.31 Cr more i.e. increase of 4.79%.

- UGC has been allocated ₹3335.97 Cr in 2025-26 as against ₹2500 Cr in 2024-25 which is an increase of ₹835.97 Cr or 33.44%.

- IITs received an allocation of ₹11349.00 Cr in 2025-26, an allocation increase of ₹1024.50 Cr or 9.92% as compared to ₹10324.50 Cr in 2024-25.

- For NITs, Rs 5687.47 Cr has been assigned in FY 2025-26 contrasted with ₹5040 Cr in 2024-25 showing an increase of ₹647.47 Cr or 12.85%.

- Deemed universities have been allocated ₹604 Cr in 2025-26 as against ₹596 Cr in 2024-25 which is an increase in allocation of ₹8 Cr or a 1.34% increase.

Here are a few top-ranked Deemed Universities: Dr. D. Y. Patil Vidyapeeth, Pune (Deemed to be University) Centre for Online Learning

- IIMs have been allocated ₹251.89 Cr in 2025-26 contrasted to ₹212.21 Cr in 2024-25, thus increasing the allocation by ₹39.68 Cr or 18.70%.

Here are some top-ranked IIMs Universities:

IIT’s ₹407.00 Cr in 2025-26 against ₹315.91 Cr in 2024-25; an increase of ₹91.09 Cr, 28.83%.

Grants for the Promotion of Indian Languages have been allocated in the amount of ₹347.03 Cr in 2025-26 against ₹310.10 Cr in 2024-25: an increase of allocation of ₹36.93 Cr or 11.91%.

What is the Education Budget?

The allocation of funds in the government purse for the education system as primary, secondary, and tertiary is exhaustive for the education budget 2025 in the general sense which reflects the priorities and undertaking of government about education. The education budget 2025 in India is divided into various sub-sectors such as:

- Primary and Secondary Education: construction and maintenance of schools, children’s feeding programs, salary to teachers, and many more.
- Higher Education: university and college support, scholarships, and research grants.
- Technical Education and Vocational Training: specialized institutes, vocational training, and skill development.
- Skill Development and Adult Education: Adult and literacy training, upliftment of workforce skills.
- The education allocation is aimed at enhancing the quality of education, constructing new infrastructure, publicizing inclusive learning, and also providing equal access to the entire society.

Education Budget 2025: What to Expect?

Several things could determine the allocation and focus areas of the education budget in India in 2025. Undoubtedly, in the growth of India as a major economic power in the world, education is likely to receive a stronger emphasis on technology use, skills development, and infrastructure upgradation in the future.

*LinkedIn

Key Factors Influencing the Education Budget 2025

- Economic Growth and Fiscal Capacity: It entails HD greatly from post-pandemic growth. It may consider a greater percentage of the national budget assignment to education. Increased tax revenues and an increasingly stable economic scenario leave more fiscal space for government investments in human capital.
- Escalation and Expansion of Digital Education: The pandemic pushed for the fast-tracking of digital education on various platforms. In 2025, education might be further invested in online learning, virtual classrooms, and hybrid learning models. All this would require substantial funding for infrastructure, teacher training, and content.
- Higher Education and Research: Study after study shows that India has several institutions with international acclaim and, therefore, more funds need to be directed toward these areas. In 2025, funding for universities, research and innovation, and ways to attract international talent may well be on the agenda.
- Skill Development and Vocational Training: Owing to fast-changing technologies and the increase in demand for skilled labor, a portion of the 2025 education budget will likely go toward providing vocational training, entrepreneurship, and reskilling to prepare the youth for new job opportunities.
- Inclusive Education: Access to education is equitable and this will include harshest margins. Therefore, scholarships, special education, and infrastructure investment even in the remotest areas will still be the centerpiece of the education budget 2025.

Education Budget Percentage in India: Last 10 Years

Changes have occurred in the percentage of the education budget 2025 of India over the past decade, and they are manifesting in the priorities of the nation, the economic growth, and challenges in its education sector. Below is a view of the percentage of the education budget 2025 in India over the years in the last decade:

2013-14	The education budget for 2013-14 was around 4.5% of the total national budget. This allocation was, in effect, focusing on the enhancement of access to education and quality at the primary and secondary levels.
2014-15	There was a slight increase in the percentage at 4.6%, with a focus primarily on the National Skills Development Mission and improvements in RUSA (Rashtriya Uchchatar Shiksha Abhiyan).
2015-16	The education budget stood at around 4.7%, highlighting higher education and technical education reforms during that time.
2016-17	Its mark went up by 4.8, with a more explicit impact on digital learning and, most notably, the NIRF's introduction.
2017-18	This all adds to the 4.9% education budget that devotes the nation's wealth towards improving the quality and research in higher education.
2018-19	This allocation raised the percentage to 5-per cent, in conformity with a wider focus on the universalization of education and the increase of capacities.
2019-20	The budget allocation was reduced to 4.6% as other sectors like defense and infrastructure got priority.
2020-21	The share of education was about 4.5% because of the pandemic effects on all sectors, and the focus was digital education and scaling up online learning platforms.
2021-22	The percentage remained around 4.6% because of more emphasis from the government on establishing digital infrastructure and initiatives such as PM eVIDYA.
2022-23	The education budget 2025 allocation for the period in question is at 4.9%, denoting an increased commitment to better quality education and technology integration.
2023-24	The allocation percentage of 5% has signified reforms in higher education, vocational training, and skill development.

The Importance of Education Budget in India’s Development

Now, spending on the education budget 2025 is going to shape India in the future. The main thing is the various issues that the government hopes to address by investing in education.

- Human Capital: Education is the backbone of a wage and trained workforce. A good education system can assure India’s youth of what’s coming.
- Economic Growth: Education well is an innovative economy that fosters entrepreneurship and productivity, all leading to sustainable economic growth.
- Social Equity: Education is a common savior from inequality. Funding sufficiently would ensure that all sections of society, irrespective of their class, could be afforded adequate quality education.
- Global Competitiveness: The strengthened education system has only added to India’s global standing, especially in terms of research, technology, and business.

The growth in educational investment goes on for many years

*BS

Conclusion

Education today becomes the magic wand that would give shape to the nation’s future in terms of ensuring quality education for each citizen. Over time, a lot has been done towards developing educational infrastructure, integrating technology, and also providing inclusive education in the country. In all probability, the education budget 2025 should cover much-needed and emerging issues in the education sector such as digital education, skills enhancement, and university reforms, to cite a few.

Although it takes gradual growth, the percentage of an education budget in 2025 about the total budget should be improved. It would also be a very important focus in persisting with progress in human capital development as well as economic and social agendas for future generations.

For those interested in Indian education policies or even those looking at a possible career in education, exposure to the Indian education budget – 2025 becomes quite necessary. It helps in understanding what has been budgeted for and its variations, as well as what is expected in the future, thus making it possible to better step into creating a brighter, more inclusive educational future in India.

Frequently Asked Questions

What will be the key focus areas of the Education Budget 2025?

The Education Budget 2025 will likely focus on enhancing digital education, infrastructure development, vocational training, and inclusive education. It will also prioritize strengthening higher education, supporting research and innovation, and promoting skills development to improve employability.

How much will India allocate for education in the Budget 2025?

While the exact allocation will be announced during the official Union Budget presentation, it is expected that the Indian government will allocate a substantial amount for the education sector in 2025, possibly increasing the percentage share of the total budget compared to previous years.

What impact will the Education Budget 2025 have on primary and secondary education?

The Education Budget 2025 is likely to allocate funds to improve school infrastructure, enhance teacher training, promote inclusive education, and ensure quality learning. There may be a focus on providing resources for underserved areas, including remote and rural regions.