Budget 2025: Prioritizing EdTech, Innovation, and Partnerships for a Future-Ready Economy

As India approaches the Union Budget 2025-26, the education sector anticipates significant investments aimed at fostering innovation, bridging infrastructure gaps, and positioning the country as a leader in educational technology (EdTech). Industry leaders and stakeholders advocate for strategic policy shifts to align the education system with the nation's economic aspirations.​

Scaling Education Investments to Meet NEP 2020 Goals

A key expectation for Budget 2025 is a substantial increase in education sector funding, with calls for an allocation of 6% of GDP, as outlined in the National Education Policy (NEP) 2020. Praveen Singh, CEO of Aasoka (MBD Group), emphasizes that such an investment is crucial for achieving the ambitious Gross Enrolment Ratio (GER) targets in higher education, expanding skill development programs, and ensuring quality education is accessible to all. He notes that this funding will not only facilitate access to quality learning but also drive public-private partnerships and create sustainable employment opportunities.​

However, Singh also highlights the necessity of addressing outdated infrastructure, limited digital tools, and unreliable internet access—barriers that hinder the preparation of India's youth for a tech-driven job market.​

Digital Infrastructure and EdTech: Bridging the Divide

The enhancement of digital infrastructure remains a focal point in discussions surrounding Budget 2025. Aarul Malaviya, Founder of Zamit, advocates for government investments to integrate technology into schools and colleges. He suggests that tax incentives for EdTech platforms, coupled with support for teacher training and a focus on future-ready skills, will drive both innovation and accessibility. The foundation laid in the 2024 Budget, which prioritized digital learning, virtual labs, and the Digital University initiative, provides a strong starting point for 2025. Stakeholders are optimistic that this momentum will continue, ensuring modern digital tools and resources reach even the most remote educational institutions.​

Public-Private Partnerships: Catalyzing Innovation

Public-private partnerships (PPPs) are poised to play a pivotal role in India's educational transformation. Dr. Yajulu Medury, Vice Chancellor of Mahindra University, believes that Budget 2025 should focus on creating a conducive environment for innovation through tax incentives, simplified regulations, and support for young entrepreneurs. Enhanced incubation programs, industry-aligned training, and expedited patent approvals are essential to fuel technological advancements and skill development. Such measures will not only strengthen India's EdTech ecosystem but also bridge the gap between academic knowledge and real-world application, empowering students to meet the demands of the rapidly evolving job market.​

EdTech for the Creative Economy

India's creative sectors, encompassing animation, augmented reality/virtual reality (AR/VR), and design, are experiencing exponential growth and present a unique opportunity for EdTech to play a central role. Dr. Sanjay Gupta, Vice Chancellor of the World University of Design, views the upcoming budget as a pivotal moment to bolster these industries. He notes that the global creative economy is projected to reach $165 billion by 2030, and India has the potential to be a key player. By supporting EdTech platforms that focus on design education and immersive technologies like AR/VR, the government can catalyze India's transition from a service provider to a global leader in the creative economy.​

A Roadmap for Future Growth

Budget 2025 represents an opportunity to propel India's education sector into a new era—one that is inclusive, innovative, and aligned with global trends in technology and skill development. Key priorities should include increased funding, a stronger emphasis on digital infrastructure, and policies that promote public-private collaboration. By addressing critical infrastructure gaps and investing in EdTech, India can create an education ecosystem that empowers learners, equips them with future-ready skills, and strengthens the country's global position as a leader in education and innovation.​

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