Union Budget 2026: Five university townships to be set up, AI to be embedded in education curriculum

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Union Minister for Education Dharmendra Pradhan lauded the Budget 2026–27, calling it a Yuva Shakti–driven budget that gives a boost to education and employment creation and presents a blueprint for the next phase of development.

The Minister informed that the total budget allocation for the Ministry of Education has reached Rs 1,39,289.48 crore, marking an 8.27% increase over budget estimates 2025–26.

He also informed that the Budget proposes the setting up of five University Townships in the vicinity of major industrial and logistics corridors. These planned academic zones will host multiple universities, colleges, research institutions, skill centres, and residential complexes, he added.

AI to be embedded in education curriculum 

Pradhan informed that a high-powered ‘Education to Employment and Enterprise’ Standing Committee has been proposed. It will recommend measures focusing on the services sector, which is the core driver of Viksit Bharat

The Committee will examine the impact of emerging technologies, including AI, on job and skill requirements. It proposes specific measures for embedding AI in the education curriculum from the school level onwards and upgrading State Councils of Educational Research and Training (SCERT) institutes for teacher training, among others.

Pradhan lauded the setting up of India’s Animation, Visual Effects, Gaming, and Comics (AVGC) Content Creator Labs in 15,000 secondary schools and 500 colleges. This project aims to provide a platform to two million professionals by 2030 for the growing AVGC sector.

One girls’ hostel to be established in every district

The Minister highlighted that India has achieved one of the highest rates of female participation in STEM education globally. To further enhance and encourage the enrolment of girls in STEM institutions and courses, one girls’ hostel in every district will be established through Viability Gap Funding and capital support, he added.

Pradhan said that, inspired by the three Kartavyas of ‘accelerating and sustaining economic growth, fulfilling aspirations and building capacities of all, and ensuring every family and community has access to resources, opportunities, and amenities’, the Viksit Bharat Budget will spur all-round growth across sectors and promote self-reliance in strategic and frontier areas. 


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