Plan for centres of excellence among new initiatives in budget to bridge skill gap
Pradhan said this budget was a generational blueprint to cater to the wholesome requirements of children and youth
NEW DELHI: Finance minister Nirmala Sitharaman’s announcement on Saturday to set up five centres of excellence (CoE) for skilling, a new CoE in Artificial Intelligence (AI) for education and 50,000 Atal Tinkering Labs (ATLs) in government schools were an effort to bridge the skill gap, experts said.
In the Union Budget presented in Parliament, Sitharaman earmarked ₹1,28,650.05 crore for the education ministry in 2025-26 including ₹78,572.1 crore for the department of school education and literacy and ₹50077.95 crore for department of higher education.
The allocation for the Prime Minister Research Fellowship (PMRF) scheme launched in 2018 saw a massive 112.4% increase to ₹600 crore for 2025-26, up from revised estimates of ₹282.4 crore in 2024-25. Sitharaman said the government will provide 10,000 fellowships for technological research in IITs and IISc with enhanced financial support in the next five years.
The initiatives come against the backdrop of the Economic Survey which underscored that 53% graduates and 36% postgraduates were underemployed in roles below their educational qualifications.
Sitharaman said the five CoE for skilling will be set up with global expertise and partnerships “to equip our youth with the skills required for “Make for India, Make for the World” manufacturing. The partnerships will cover curriculum design, training of trainers, a skills certification framework, and periodic reviews.”
In her speech, the minister announced ₹500 crore for the new CoE in AI for education. Work for setting up three CoE in AI for agriculture, health, and sustainable cities are already underway at 25 different government higher education institutions.
“The fourth CoE in AI for education aims to revolutionise India’s educational system from pre-primary to professional and research levels. By harnessing artificial intelligence, it seeks to address disparities and inefficiencies, ensuring equitable and high-quality education across the nation. In line with the comprehensive implementation of the National Education Policy 2020, this transformative initiative will integrate AI-driven innovations to enhance teaching, assessment, and policymaking...” the ministry of education said in a statement.
UGC chairperson M Jagadesh Kumar said that the establishment of CoE for skilling was a significant step towards empowering our youth with industry-relevant skills and enhancing their employability.
“The creation of a Centre of Excellence for AI in education, with an outlay of ₹500 crore, underscores the government’s recognition of AI’s transformative potential and its importance in shaping the future of learning,” he added.
Dr Somak Raychaudhury, vice-chancellor, Ashoka University said the budget was “very progressive” and prioritised skill development, AI literacy, and research.
“The establishment of five national CoE in skilling and ₹500 crore AI CoE in education will boost India’s scientific temper and higher education landscape. By collaborating with top higher education institutions, these centers will foster interdisciplinary synergies, enhancing AI and technical expertise among Indian youth, boosting employability, and advancing India as a global education and AI hub,” he said.
British Council India director Alison Barrett said the budget sought to lay a strong foundation for the nation’s youth and future workforce.
“The creation of five national CoE for skilling and global skilling partnerships will equip young people with the expertise needed to thrive in an increasingly competitive world. The ₹500 crore allocation for a CoE for AI in Education is a step forward in nourishing India’s technical and digital capabilities. At the British Council, we remain committed to partnering with the Indian government to create opportunities that empower young people, enabling them to drive meaningful change and succeed both locally and globally,” she said.
The establishment of 50,000 ATLs over the next five years would “cultivate the spirit of curiosity and innovation and foster a scientific temper among young minds.” She also added that broadband connectivity will be provided to all government secondary schools in the country.
Education minister Dharmendra Pradhan said the pilot implementation of ATLs had been successfully done in 10,000 government schools which raised the critical thinking of the students. “To give a quantum jump to the initiative, FM Sitharaman has announced the setting up of 50,000 ATLs in the schools in the next five years. We will also make budgetary provisions for providing broadband connectivity to schools,” he said
Sitharaman also said the government will add 6,500 more seats in five IITs started after 2014 over the next five years. The government has also decided to improve the hostel and other infrastructure facilities at IIT Patna, she added.
According to education ministry officials, the engineering seats at IIT are likely to be added in IIT Tirupati, IIT Dharwad, IIT Palakkad, IIT Jammu, and IIT Bhilai from the next academic session.
The minister also added that 10,000 additional seats would be added in medical colleges and hospitals in 2025-26, towards the goal of adding 75,000 seats in the next 5 years.
“The addition of medical seats over five years is a crucial step in reducing medical student outflow to other countries, given that over 23 lakh students appear for NEET, but only 1.1 lakh medical seats are available,” said Prateek Maheshwari, co-founder of coaching institute PhysicsWallah (PW).
