From animation labs to hostels: Key education announcements in Budget 2026

Union Budget 2026 also announced a high-level standing committee to strengthen links between education, employment and enterprise, with a focus on services-led growth and future skill needs

Finance Minister Nirmala Sitharaman on Sunday (February 1) announced a series of measures aimed at strengthening India’s education, skills and creative economy pipeline in her Budget 2026 speech, with a focus on meeting workforce demand, expanding higher education capacity and improving access for women students.

 

Citing rapid growth in the animation, visual effects, gaming and comics (AVGC) sector, the government said the industry is expected to require around 2 million professionals by 2030.

 

To support this demand, the Centre announced plans to assist the Indian Institute of Creative Technologies, Mumbai, in setting up AVGC content creator labs in 15,000 secondary schools and 500 colleges across the country. The move is aimed at building early-stage skills and widening the talent pipeline for the creative economy.

 

One girls’ hostel planned in every district

 

Announcing a major student welfare initiative, the finance minister said one girls’ hostel will be established in every district under the viability gap funding (VGF) scheme.

 

“Long hours of study and laboratory work pose challenges for girl students, and under the VGF scheme, one girls’ hostel will be established in every district,” the finance minister said.

 

The measure is aimed at improving access to higher education for women, particularly in districts with limited residential facilities.

 

Five university townships near industrial corridors

 

In a bid to align higher education with industrial and logistics growth, the finance minister said the Centre will support states in creating five university townships near major industrial and logistics corridors.

 

These academic clusters will house multiple universities, colleges, research institutions, skill centres and residential facilities, and are expected to create integrated education ecosystems linked to local industry demand, Sitharaman said.

 

New National Institute of Design planned for eastern India

 

To address rising demand in the design industry, Sitharaman said a new National Institute of Design will be established in eastern India through a challenge route.

 

The proposed institute is intended to strengthen design education and capability in the region, while addressing gaps in access to formal design training outside established hubs.

 

High-powered panel proposed to link education and jobs

 

The finance minister also proposed setting up a high-level standing committee to strengthen the link between education, employment and enterprise, with a particular focus on services-led growth.

 

“I propose to set up a high-powered ‘Education to Employment and Enterprise’ Standing Committee to recommend measures that focus on the services sector as a core driver of Viksit Bharat. This will make us a global leader in services, with a 10 per cent global share by 2047,” Sitharaman said.

 

The committee will prioritise areas to optimise growth, employment and exports, assess the impact of emerging technologies including artificial intelligence on jobs and skill requirements, and recommend measures accordingly.