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Opinion | Budget 2026-27 And The Rewiring Of India’s Education, Skills And Healthcare Compact

5 4
05.02.2026

The Union Budget 2026-27 marks a decisive inflexion point in India’s human capital strategy, signalling a shift from expansion-led growth to capability-led development. Across education, healthcare, and skilling, the budget reflects a clear recognition that India’s next phase of economic competitiveness will be shaped not merely by infrastructure or consumption, but by how effectively it trains, deploys, and continuously upskills its people. Artificial intelligence sits at the centre of this recalibration, positioned not as a standalone sector but as an enabling layer across systems.

As articulated by Union Minister for Education Dharmendra Pradhan, the budget places education at the core of employment creation and long-term economic resilience. The Ministry of Education’s allocation has risen to Rs 1,39,289.48 crore, an increase of 8.27 per cent over the previous year, at a time when many global economies are compressing public spending on education. This scale of commitment signals a strategic belief that human capital is India’s most durable national asset and a primary driver of sustained growth.

The education vision of Budget 2026-27 is anchored in the three Kartavyas outlined by the finance minister: accelerating growth, building capacities, and ensuring inclusive access. This is reflected most clearly in the Department of School Education and Literacy receiving its highest-ever allocation of Rs 83,562 crore. Flagship programmes such as Samagra Shiksha and PM POSHAN have been strengthened substantially, reinforcing foundational learning while modernising pedagogy and infrastructure. These investments indicate a shift from enrolment-driven metrics to learning outcomes and future readiness.

At the higher........

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