Budget 2026–27: Key announcements for education, youth

Finance Minister Nirmala Sitharaman on Sunday, February 1, described the Union Budget 2026–27 as a “yuva shakti–driven budget”, with a renewed focus on education, skills, creative industries and employment pathways.

Presenting the Budget in the Lok Sabha, Sitharaman said fulfilling aspirations and building capacities form the government’s second kartavya, noting that nearly 25 crore people have exited multidimensional poverty over the past decade.

She said the government will now place special emphasis on education and the services sector as engines of jobs and growth.

Education-to-employment focus

The Finance Minister announced the setting up of a “high-powered Education to Employment and Enterprise Standing Committee” to recommend measures that position the services sector as a core driver of growth.

• The panel will work towards making India a global leader in services with a 10% global share by 2047
• It will prioritise sectors with high potential for jobs, exports and productivity
• The committee will assess the impact of artificial intelligence and emerging technologies on employment and skill requirements

Higher education and student infrastructure

The Budget proposed multiple measures to expand higher education capacity and improve student access:

• Five university townships, supported by academic zones hosting colleges, skill centres and residential facilities
• One girls’ hostel in every district, aimed at improving access and participation of women in higher education
• Support for new institutions and strengthening of higher education infrastructure
• Continued focus on school education through Samagra Shiksha

Creative economy and new-age skills

Highlighting the growth of the animation, visual effects, gaming and comics (AVGC) sector, Sitharaman said the industry is projected to require around two million professionals by 2030.

Key proposals include:

• Establishment of the Indian Institute of Creative Technologies in Mumbai
• Setting up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges
• A new National Institute of Design in East India, expanding access to design education

She said these initiatives aim to create large-scale employment opportunities in creative and digital sectors.

Sports, youth and employment

The Finance Minister announced the launch of a Khelo India Mission to transform the sports sector over the next decade.

• Focus on grassroots talent development
• Training of coaches and support staff
• Integration of sports science
• Expansion of competitions and sports infrastructure
• The Budget also supports sports goods manufacturing, linking sports development with youth employment.

Education-linked tax relief

To reduce financial pressure on students and families:

• TCS under the Liberalised Remittance Scheme for education cut from 5% to 2%
• Timeline for filing revised income tax returns extended till March 31 with a nominal fee

Youth at the centre of growth strategy: FM

Calling the Budget “yuva shakti–driven”, Sitharaman said the combined focus on education, skilling, creative industries, sports and services-led employment is aimed at preparing young Indians for a technology-driven global economy.