Press Release
Aditi Kumari
The IMPRI Center for ICT for Development, IMPRI, Impact and Policy Research Institute, New Delhi, hosted an interactive panel discussion on the topic “Education, S&T, R&D Union Budget 2025-26” on 3rd February 2025, at 6:30 p.m. IST, under IMPRI 6th Annual Series of Thematic Deliberation and Analysis of Union Budget as part of IMPRI #WebPolicyTalk.
The Chair & Moderator of the session, Prof Sachidanand Sinha, Visiting Professor, IMPRI; Former Professor, Jawaharlal Nehru University (JNU), New Delhi, highlighted critical gaps in India’s primary education, particularly in rural and tribal areas. Despite claims of full enrollment, many children remain out of school due to poor data tracking. He cautioned against closing small schools for efficiency, advocating instead for better teacher allocation and neighborhood schooling, especially in hilly regions.
Discussing the upcoming budget, he stressed the need for effective fund utilization, timely scholarship disbursement, and greater government investment in school infrastructure. He urged a strategic approach to education funding in 2024-25 and beyond to ensure quality learning for all.
Prof. Binod Khadria, Former Professor Jawaharlal Nehru University, New Delhi, raised concerns over the 2024-25 budget, noting that while it increased by 4% to ₹50 lakh crore, inflation (5%) led to a real decline of 1%. The education budget, rising marginally to ₹1.128 lakh crore, now makes up just 2.5% of total spending, down from 2.6% last year. He contrasted this with a 33% boost in Commerce & Industry and a 19% rise in Energy, signaling a shift in priorities. Despite long-term goals for Viksit Bharat 2047, he stressed the need to meet the 6% education spending target.
Prof. Khadria criticized contradictions in budget claims, highlighting rising unemployment among educated youth and India’s growing skilled labor export. He also questioned inflation estimates, with food inflation at 8%. Politically, he noted the budget’s appeal to the middle class through tax concessions, comparing it to Krishna winning over the Gopis. Whether this “productive consumption” strategy succeeds remains to be seen.
Dr Protiva Kundu, Thematic Lead Social Sector, Center for Budget and Governance Accountability, New Delhi, analyzed the Union Budget’s impact on school education, highlighting concerns over funding patterns and inclusivity. The education budget stands at ₹1.28 lakh crore, with 61% allocated to school education. While this marks a 7.6% nominal increase, inflation-adjusted figures reveal minimal growth. Public spending on education remains at 3.8% of GDP, far from the 6% target set by the National Education Policy.
Dr Kundu emphasized a funding shift towards elite institutions like Kendriya Vidyalayas, Navodaya Vidyalayas, and PM Shri Schools, which receive higher per-student allocations than general government schools. Despite a 24% rise in PM Shri Schools’ budget, spending remains low, with substantial unutilized funds. PM Poshan (midday meals) saw no budget increase, even as food inflation rises.
Concerns were raised about scholarships for marginalized students, with ministries surrendering unspent funds due to delays in validation processes. The Ministry of Minority Affairs, for instance, returned ₹2,000 crore, impacting pre-matric and post-matric scholarships. The Ministry of Social Justice and Empowerment also failed to utilize a significant portion of funds meant for SC and ST students. Dr. Kundu stressed the need for efficient fund utilization and a more inclusive education budget to support vulnerable students, ensuring equitable access to quality education.
Professor Rupamanjari Ghosh, Expert Department of Science and Technology Government of India Committees in Physical Sciences, Former Vice Chancellor of Shiv Nadar University, Delhi NCR, Former Professor of Physics and Dean of School of Physical Sciences at Jawaharlal Nehru University, New Delhi, underscored critical gaps in India’s higher education and research ecosystem, emphasizing the need for inclusive policy-making and strategic investment in technology-driven innovation. Addressing the Union Budget’s focus on STEM, AI, and innovation, she cautioned against an over-reliance on premier institutions like IITs and IISc Bangalore while neglecting other universities. She stressed the importance of bridging the digital divide and ensuring that technology serves as an enabler rather than a standalone solution.
Professor Ghosh highlighted the need for robust R&D in sustainable energy, urging greater support for renewable energy research alongside India’s push for nuclear power. She raised concerns over India’s lag in quantum computing, semiconductor manufacturing, and climate change research, calling for better capacity-building and talent attraction in science and technology.
She also emphasized the necessity of data-driven policy decisions, pointing out gaps in India’s energy data recording and analysis. Additionally, she advocated for mechanisms to monitor budget allocations effectively, ensuring funds are utilized efficiently with technical and educational oversight.
Concluding her address, Professor Ghosh stressed that without long-term investments in foundational sciences and capacity development, India risks perpetually playing catch-up in global innovation.
Prof Saumen Chattopadhyay, Professor and Chairperson Zakir Hussain Center for Educational Studies, Jawaharlal Nehru University, New Delhi, analyzed the budget’s impact on higher education, questioning whether the push for skill development and industry alignment under NEP is overshadowing institutional capacity-building. While aiming for a 50% gross enrollment ratio by 2035, budget constraints have increased reliance on loans and private funding.
He raised concerns over shifting research priorities, with more focus on startups than foundational science. Budget cuts for central universities, IITs, and IIMs, alongside growing dependence on corporate and CSR funding, risk weakening academic institutions.
Despite rising allocations for digital learning, he warned that it may deepen urban-rural disparities. Cuts in funding for world-class universities and internationalization initiatives further indicate a shift away from improving global rankings. Prof Chattopadhyay called for a balanced approach, cautioning that overemphasis on skills and credit-based learning could undermine higher education’s role in fostering critical thinking and social responsibility.
Professor Mona Khare, Professor and Department of Educational Finance, Director of University Grants Commission, Malviya Mission teacher training Center and National Institute of Educational planning Administration, New Delhi, highlighted three key dimensions—continuity, inclusivity, and employability—while evaluating its impact on education and workforce development. She emphasized the National Education Policy’s goal of making India a global knowledge hub and the increased focus on digitization, technology integration, and professional education, including medical and STEM fields. However, she pointed out gaps in addressing low-level skills and informal sector employment, particularly as workforce participation rises in agriculture, with declining employment in services and manufacturing.
She raised concerns about whether skill development initiatives, including national centers of excellence and apprenticeship programs, adequately cater to the broader workforce, especially in rural and informal sectors. She also underscored the increasing role of the private sector in education and research, noting the limited budgetary allocation for research and innovation, which remains below 1% despite ambitions of global leadership in knowledge and skills. Discussing internationalization efforts, she observed a decline in budget allocations for initiatives like the Study in India program and research fellowships.
Professor Khare concluded by calling for stronger industry-academia alignment to ensure that skill-building initiatives effectively match labor market demands, ensuring inclusive and future-ready workforce development.
Advocate Anubha Shrivastava Sahai, President India White Parents Association Lawyer and Child Rights Activist, shared her insights on the budget’s focus on education, particularly the Right to Education (RTE) and Samagra Shiksha Abhiyan. She appreciated the government’s initiatives, including AI centers of excellence, skilling programs, IIT and medical seat expansion, and increased funding for startups, while emphasizing the need for effective implementation at the ground level.
She highlighted the growing number of students appearing for competitive exams like JEE and NEET, stressing that increasing IIT and medical seats is crucial as infrastructure development takes time. With 17 crore students enrolled under Samagra Shiksha Abhiyan and nearly one crore out of school, she urged greater budget allocation to address this gap. Expressing concern over the closure of government schools in states like Maharashtra, Bihar, and Haryana, she emphasized the need to strengthen RTE implementation, particularly the 25% reservation in private schools. She cited Maharashtra’s past attempt to cancel RTE quotas, which was overturned by the courts, reinforcing the need for sustained government support.
She also praised initiatives like Vidya Shakti, which aims to bridge the digital divide by connecting rural schools to broadband. However, she cautioned that without stronger funding for Samagra Shiksha Abhiyan, marginalized students might not fully benefit from education reforms. While welcoming the government’s move to double IIT seats from 65,000 to 1.3 lakh in the next five years, she reiterated the need for a more robust education budget to ensure inclusive growth.
Professor Nalin Bharti, Department of Humanities and Social Sciences Indian Institute of Technology, Patna and Visiting senior fellow, IMPRI, highlighted the government’s commitment to clean energy, public sector-driven research, and international investment partnerships. He emphasized the Clean Tech Manufacturing Mission, which focuses on EVs, solar panels, and nuclear energy, with a target of 100 GW nuclear capacity by 2047. While acknowledging India’s progress, he noted the need for faster innovation and investment to match global leaders like the U.S.
Discussing public sector-driven research, Professor Bharti pointed out India’s need to integrate FDI and intellectual property rights (IPR) in comprehensive trade agreements to boost innovation and startups. He also stressed the importance of deep-tech funding, R&D, and Prime Minister’s Research Fellowships (PMRF) to build a strong knowledge economy.
Highlighting India’s global investment challenges, he shared insights from a Tokyo-based focus group with Japanese pharmaceutical firms, revealing that cultural and social factors also play a role in investment decisions.On domestic growth, he observed the budget’s attempt to balance investment across large and small cities, mentioning Patna’s new institutions as a positive step. However, he cautioned that top research talent may still prefer established centers like IIT Madras and IIT Bombay, emphasizing the need to develop infrastructure in emerging educational hubs. In conclusion, he stated that this budget reflects a transforming India, seeking global partnerships, promoting sustainability, and fostering research-driven growth, while also navigating economic and geopolitical shifts.
Dr Y. Suresh Reddy, Director of SRF Foundation, Gurgaon, highlighted critical observations on the education budget. While acknowledging the increase in allocations, he pointed out that, when adjusted for inflation, the rise is essentially a status quo. He emphasized the expansion of Atal Tinkering Labs (ATL) and the focus on promoting centers of excellence in government schools. With a significant increase in ATL labs from 10,000 to 50,000, Dr Reddy expressed concerns about the lack of effective mentorship and the need for better capacity-building programs for educators, especially in rural areas.
Dr Reddy also noted the absence of adequate science labs at the middle and secondary school levels, which undermines fundamental science education. He advocated for stronger vocational education integration in schools, in line with the National Education Policy, to promote practical skills. While recognizing the importance of initiatives like the PM Schools and AI investments, he stressed the need for better utilization of allocated funds, improving school infrastructure, connectivity, and bridging the rural-urban digital divide.
Concluding his remarks, Dr Reddy called for a rationalization of school structures, particularly at the primary level, and better resource utilization to enhance the quality of education in underserved regions.
The panelist highlighted key reforms in research funding, skill development and digital education, emphasizing the government’s push for a future-ready workforce. Experts discussed the need for regional balance, better infrastructure in rural areas, and stronger industry-academia linkages. While initiatives like PMRF and deep-tech funding were appreciated, concerns were raised about their equitable distribution. Moving forward, panelists stressed the importance of effective policy implementation, continuous monitoring, and fostering global partnerships to enhance India’s education ecosystem and drive long-term growth.
IMPRI’s 6th Annual Series of Thematic Deliberations and Analysis of Union Budget 2025-26
IMPRI’s 6th Annual Series of Thematic Deliberations and Analysis of Union Budget 2025-26
Watch the event at IMPRI #Web Policy Talk
Education, S&T, R&D and Union Budget 2025-26
Acknowledgement- This article was written by Aditi Kumari, research intern at the Impact and Policy Research Institute (IMPRI), pursuing Post graduation in Sociology.
