The article was first published in BW Education on 09 February 2026. Please click here to read the article.
Presenting the union budget for a record ninth consecutive time, FM made the intent clear. This budget was not meant for popularity, but to take the path of industrial prosperity to become an economic powerhouse – where almost all sectors saw an increase in outlay.
Aligning to the philosophy of individual prosperity leading to industrial growth, this budget had focused on those sectors that are labour intense. Also, prominent was the plan to have AI across sectors – not shying away from it.
In developing the human capital of a nation with most youngsters, the Union Budget 2026-27 signals a big shift in Education - moving from ‘literacy’ to a robust ‘employment pathways’ framework. Education is aligned towards employability and skilling programmes are linked to those jobs that will bring about employment in near future.
We saw the usual expansions in apex institutions such as IITs, AIIMS, NIMHANS etc., but the highlight of this budget is the announcement of a plethora of new institutions aimed at providing pathways to youth into those jobs and sectors that will provide employment. And these are a combination of traditional sectors that require large labour– such as agriculture, textiles, leather, toys, rural economy, MSME etc. and the emerging ones such as healthcare, pharma, entertainment, hospitality etc. The emphasis has gone beyond economic growth or even sectoral growth to specific job roles that will see expansion.
Healthcare and pharma sectors are good examples of this. Biopharma SAKTHI mission with INR 10,000 crore outlay, that will propel India beyond generics into the high-value realm of biologics and biosimilars. Three new NIPERs and 1,000 clinical trial sites will help India to compete with global biotech hubs – helping innovation translate to manufacturing at home. Three new All India Institutes of Ayurveda may well be the beginning of a chapter in Indian healthcare industry. AYUSH Drug Testing Labs and upgradation of existing WHO Global Traditional Medicine Center in Jamnagar could create a global market for traditional medicines, positioning India as destination for the much needed holistic healthcare model. A target to train 1 lakh Allied Health
Professionals and 1.5 lakh multi-skilled caregivers, the budget addresses the rising global demand for structured healthcare services. By standardising training in fields like optometry and radiology, India could build a ‘Healthcare Export Workforce’, capable of serving both domestic needs and the aging populations of developed nations. Five regional medical hubs that got announced in this budget could potentially create a multidisciplinary skilling ecosystem where students don’t just study medicine but are trained in ‘Medical Value Tourism’ capable of serving international patient standards while leading domestic healthcare innovation.
Indian Institute of Creative Technologies (IICT) is one such case in point. IICT brings about the much needed Animation, Visual effects, Gaming, Comics, and extended reality (AVGC-XR) capabilities which are going to be core for entertainment sector across formats. A clear case of how digital technologies create more jobs and also boost sectoral growth in the vast Indian entertainment market – today this is being fulfilled by talent outside India. Interesting to see how this budget has sanctioned an outlay for creation of this institute (in Mumbai), and its expansion across India but also an immediate purpose by mandating content creator labs in 15,000 schools and 500 colleges.
The announcement of five new University Townships near major industrial and logistics hubs will facilitate Industry – Academia partnership to create new Knowledge-Industrial-Economic Zones - where students learn in the immediate proximity of the industries that they will eventually be employed. This will bridge the gap between academic research and commercial application as well.
Many new institutions have been announced keeping in perspective the Indian job market – as well as preparing youth for global employment. The National Institute for Design – aptly announced to be in North-East will bring about the unique characteristics of the region in our design studies – brining in heterogeneity and flavors of Indian traditions. Similarly, the National Institute of Hospitality will bring in ‘professionals’ into the rapidly growing Tourism sector in India. This budget has provisions incentivising the private sector to establish veterinary and para-vet colleges through loan-linked subsidies. This will be a shot in the arm to fill the gap in the sector by skilling more than 20,000 youth. Samarth 2.0 will upgrade the textile skilling ecosystem that will help preserve traditional heritage while infusing it with modern productivity tools and global branding.
Budget has also provided measures to bring women into workforce through a significant initiative of providing girls’ hostel in every district to support STEM students. Encouragement to entrepreneurship and SMEs have been provided through the SME growth fund, Corporate Mitra program and SHE Marts to help rural women and SHGs.
The intent is clearly demonstrated in setting up the ‘Education to Employment and Enterprise’ high powered standing committee, which is tasked to provide synergies between academia and service sectors. The budget has also provided much-needed emphasis on service sector – setting ambitious goals of capturing 10 per cent of global share by 2047. The simultaneous promotion of manufacturing and services is very encouraging and sets the tone for our journey towards Viksit Bharat.
