From Innovation Universities to GST Relief on Digital Learning: What Is Expected from the Education Budget 2026–27

New Delhi:
As the Union Budget 2026–27 approaches, expectations are running high within the education sector, with policymakers, academic leaders, edtech firms, and industry stakeholders calling for a transformative push that aligns with the government’s long-term vision of Viksit Bharat 2047. There is a growing consensus that education must no longer be viewed merely as a social expenditure, but as a strategic investment in national capacity-building.

Stakeholders argue that India’s demographic advantage can only be converted into economic and technological leadership if the upcoming budget prioritises innovation-driven higher education, skilling, research, and digital learning.

Push for Innovation Universities and Global-Standard Campuses

One of the key expectations from the Education Budget 2026–27 is the creation of innovation universities focused on frontier technologies such as artificial intelligence, quantum computing, biotechnology, clean energy, and advanced manufacturing. Experts believe such institutions should operate with greater academic autonomy, flexible curricula, and strong industry collaboration to compete with global research universities.

There is also demand for increased funding to help select Indian universities achieve global rankings, attract international faculty, and encourage foreign student enrolment, positioning India as an education hub.

Boost to Translational Research and R&D Funding

Another major focus area is translational research—bridging the gap between academic research and real-world applications. Academicians and startup founders are urging the government to significantly raise funding for research parks, incubators, and university-industry partnerships.

Currently, India’s spending on research and development remains below 1% of GDP. Stakeholders want a clear roadmap in the budget to raise this figure, with targeted grants for applied research, patent development, and commercialization of academic innovations.

GST Relief on Digital Learning and EdTech

With digital education becoming an integral part of India’s learning ecosystem, industry leaders are pushing for GST rationalisation on online courses, learning platforms, and digital education tools. Edtech companies argue that lower GST rates would make quality education more affordable and accessible, especially for students in Tier-2 and Tier-3 cities.

There is also demand for tax incentives for companies investing in digital learning infrastructure, AI-based assessment tools, and regional language content.

Stronger Focus on Skilling and Employability

In line with Viksit Bharat 2047, experts stress that employability must be at the centre of education policy. The budget is expected to strengthen skill-linked education, apprenticeships, and vocational training, especially in emerging sectors like semiconductors, green energy, robotics, and healthcare technology.

Greater funding for the National Skill Development Corporation (NSDC), industry-aligned curriculum updates, and credit-based skilling modules within higher education are among the key demands.

Teacher Training and School Education Reforms

School education stakeholders are calling for enhanced allocation for teacher training, digital classrooms, and learning outcome measurement. Implementation of the National Education Policy (NEP) at the grassroots level—especially in government schools—remains a priority.

There are also expectations of targeted schemes to improve foundational literacy and numeracy, upgrade school infrastructure, and expand access to early childhood education.

Education as a Pillar of Viksit Bharat 2047

Policy experts argue that achieving the vision of a developed India by 2047 will depend heavily on how effectively the education system nurtures innovation, critical thinking, and global competitiveness. The Education Budget 2026–27 is therefore seen as a crucial opportunity to signal the government’s intent to treat education as a long-term economic and strategic priority.

Whether through innovation universities, research-led growth, or affordable digital learning, stakeholders believe the upcoming budget must lay the groundwork for an education ecosystem capable of powering India’s next phase of development.