Budget 2026 Speech Highlights: New institutes, 5 university townships announced; skilling push for education

The Union finance minister Nirmala Sitharaman, in her Budget 2026 speech, announced the setting up of new national-level institutes, including three National Institutes of Pharmaceutical Education and Research (NIPERs), a National Institute of Design, along with support for a new university township. Education Budget 2026 LIVE

The Education Budget also outlined an expanded skilling and education push across healthcare, accounting, tourism sectors, with a special focus on employability. “The Union Budget 2026-27 focusses on India’s economic priorities for the coming financial year, with a focus on growth, stability and inclusive development,” the minister said.

The finance Minister presented her 9th budget speech today for the first time in Kartavya Bhavan.

Medical education: 1 lakh AHPs in 10 years

A major focus in the Budget 2026-27 is the expansion of medical health education and allied professionals. Sitharaman has proposed to set up three new All India Institutes of Ayurveda.

The government said existing institutions for Allied Health Professionals (AHPs) will be upgraded, while new AHP centres will be set up across 10 sectors, including optometry, radiology, and anaesthetics to create one lakh AHPs over the next 10 years.

In the next five years, the Centre plans to add 1 lakh AHPs and train 1.5 lakh caregivers. The new scheme will be launched to support states in setting up five regional medical hubs. Moreover, it also aims for a 50% increase in capacity at district hospitals through the creation of emergency and trauma centres.

New institutes, university townships

As part of its higher education push, the government has announced that a National Institute of Design (NID) will be established in the eastern region of India to boost design education and innovation.

In addition, five university townships will be created in the vicinity of major industrial and logistic corridors, aimed at strengthening industry-academia collaboration. To improve access for women in STEM-focused higher educational institutions, the government has announced that it will set up one girls’ hostel in every district.

The government proposed establishing or upgrading four telescope infrastructure facilities to promote research in astrophysics and astronomy.

Sitharaman also announced the setting up of a National Institute of Hospitality by upgrading the National Council for Hotel Management and Catering Technology.

In addition, a pilot upskilling scheme has also been proposed to train 10,000 tourist guides across 20 iconic tourist sites through a standarised 12-week hybrid training programme, to be implemented in partnership with Indian Institute of Management (IIM).

Skill development push

Highlighting the growing demand for animation, visual effects, gaming and comics (AVGC) sector, which is projected to require two million professionals by 2030, the finance minister announced support for the Indian Institute of Creative Technologies, Mumbai.

Under the initiative, AVGC content creator labs will be set up in 15,000 secondary schools and 500 colleges to provide early exposure and industry-aligned training to students.

To strengthen workforce alignment, the government proposed the creation of a high-powered ‘Education to Employment and Enterprise’ Standing Committee. The committee will focus on the services sector as a key driver of Viksit Bharat, with a target of achieving a 10% global share in services by 2047.