Building India’s future through a youth-driven roadmap for education, jobs

Recognising that the transition from classroom to workplace is a major challenge for the nation’s youth, the Government of India has introduced a roadmap for the 2026-2027 fiscal year that places young people at its very heart.

Finance Minister Nirmala Sitharaman, presenting her record ninth consecutive Union Budget, termed this a “unique Yuva Shakti-driven Budget”, citing the influence of the Viksit Bharat Young Leaders Dialogue 2026 on its core proposals.

The plan is anchored in the government’s second kartavya (duty), which is “to fulfil aspirations of our people and build their capacity” so they can become active partners in national prosperity.

By integrating educational reform, technology, and specific employment incentives, the Union Budget 2026-2027  seeks to bridge the gap between human potential and industrial performance.

Academic environment

The government is looking to reshape the physical and academic environment of higher learning by proposing the creation of five University Townships in the vicinity of major industrial and logistic corridors. These townships are envisioned as “planned academic zones” that will host a diverse ecosystem of universities, research institutions, and skill centres alongside residential complexes.

According to Dr Nipun Sharma, CEO of TeamLease Degree Apprenticeship, co-locating education hubs with industrial clusters solves the “last-mile skilling” problem, enabling day-one-ready apprentices while reducing migration-linked attrition by 25–30%.

Specialised institutional growth is another pillar of this expansion. The budget proposed three new National Institutes of Pharmaceutical Education and Research (NIPER) while upgrading seven existing ones to bolster the Biopharma sector.

In the arts and design sector, a new National Institute of Design will be established in the eastern region of the country through a challenge route.

Furthermore, the government aims to address gender disparities in high-pressure academic environments by providing viability gap funding to establish one girls’ hostel in every district specifically for students in STEM institutions.

Digital evolution

Education and technology integration are treated as essential force-multipliers for governance and learning in this budget. A pivotal development is the establishment of the ‘Education to Employment and Enterprise’ Standing Committee.

This body is tasked with recommending specific measures for embedding artificial intelligence (AI) in the education curriculum from school level onwards and modernising teacher training through State Councils of Educational Research and Training.

Neeti Sharma, CEO of TeamLease Digital, argued that “unemployability has been a bigger challenge than unemployment in India,” adding that tighter integration between school education, apprenticeships, internships and work-integrated learning is essential to attract higher-value global jobs across IT, healthcare, engineering and services.

Meanwhile, to meet an anticipated demand for two million professionals by 2030, the budget provides for the Indian Institute of Creative Technologies to set up AVGC (Animation, Visual Effects, Gaming, Comics) Content Creator Labs in 15,000 secondary schools and 500 colleges. This initiative seeks to democratise access to the tools of digital storytelling, from animation to gaming, at the secondary level.

Dipankar Mukherjee, Co-founder and CEO of Studio Blo, noted that while India’s AI-native content studios are scaling rapidly, “AI must be treated as a production workflow, not a replacement for creative intelligence.” He added that bridging gaps in storytelling, world-building and design maturity will require education models rooted in real industry projects and strong narrative training.

Meanwhile, the introduction of Bharat-VISTAAR, a multilingual AI tool, showed a sophisticated application of edtech designed to translate complex agricultural research into accessible advisory support for the rural workforce.

Varun Duggirala, Co-founder of Emomee, sees this as a structural shift. “India’s content story has long been consumption-led. This budget signals a move towards building the foundations of the creation engine — positioning India as a global player across IP creation and innovation.”

Skilling framework

Skilling initiatives have been recalibrated to ensure they are both inclusive and industry-aligned. The Samarth 2.0 programme has been introduced to modernise and upgrade the textile skilling ecosystem through collaboration with industry and academic institutions.

This approach is mirrored in the tourism sector, where a pilot scheme will focus on upskilling 10,000 guides in 20 iconic tourist sites through a standardised, high-quality 12-week training course developed in partnership with an Indian Institute of Management.

To further integrate professional training with market demands, the government will set up a National Institute of Hospitality by upgrading the existing National Council for Hotel Management and Catering Technology to “function as a bridge between academia, industry and the Government”.

Aditya Sanghi, CEO of Hotelogix, said, the Budget “rightly positions tourism and hospitality as major job creators,” but stressed that success will depend on execution that enables midscale hotels in Tier II and III markets to access skilled talent and modern digital tools.

The budget also highlighted the growing importance of the care economy and professional para-services. The government plans to train 1.5 lakh caregivers in the coming year to support geriatric and allied care services.

For the small business sector, professional institutions will design modular courses to develop a cadre of ‘Corporate Mitras’, especially in Tier-II and Tier-III towns. These para-professionals will assist MSMEs with complex compliance requirements at an affordable cost, effectively creating a new layer of professional employment.

Furthermore, the Divyangjan Kaushal Yojana will provide industry-relevant, customised training for persons with disabilities in task-oriented sectors like IT and hospitality.

Incentivising employment

The focus of these interventions is to make India a “global leader in services, with a 10% global share by 2047”.

This is reflected in a massive increase in the allocation for labour, employment, and skill development, which has reached Rs 28,715 crore in the latest estimates.

The PM Internship Scheme remains a central tool for professional development, with a substantial budget estimate of Rs 4,788.45 crore for 2026-2027. This scheme is designed to provide the crucial first step into the workforce for graduates who might otherwise struggle with a lack of experience.

In specialised sectors, the government is setting ambitious targets to add 1,00,000 Allied Health Professionals over the next five years and increase the availability of veterinary experts by more than 20,000. 

Even the digitisation of cultural heritage is being leveraged for jobs, as the new National Destination Digital Knowledge Grid is expected to create an ecosystem for local researchers, historians, and technology partners.

Through the centrally sponsored PM SETU scheme, which has an allocation of Rs 6,140.50 crore, the government is also upgrading the infrastructure of ITIs to ensure that the vocational workforce is ready for a technology-driven future.

Meanwhile, education spending has steadily increased, rising from Rs 1,10,736 crore in 2024–25 (actuals) to a revised Rs 1,21,949 crore in 2025–26, and reaching a high of Rs 1,39,289 crore in the 2026–27 Budget, highlighting the government’s sustained focus on education-led capacity building and skills development.

Collectively, these measures suggest a comprehensive attempt to not just create jobs, but to build a skilled, future-ready population that can thrive in a modernised economy.