Presenting the Budget for 2020-21, Sitharaman said Rs 99,300 crore has been allocated for the education sector and Rs 3,000 crore for skill development.
Sitharaman said the Narendra Modi government will soon announce a new education policy.
According to new proposals announced in the budget, urban local bodies will provide internship to young engineers for a year so that they get an idea about the functioning of the government.
"Degree level online education courses will be introduced which can be provided by colleges figuring in top 100 in National Institutional Ranking Framework," she said in her budget speech.
In order to boost the Study in India programme, the Finance Minister proposed "conducting IND-SAT exam to be held in African and Asian countries for benchmarking foreign candidates who wish to study in the India".