India’s federal budget for 2026–27 outlined a set of targeted measures for the education sector, including the creation of university townships, construction of girls’ hostels in STEM institutions and investment in national telescope infrastructure, Finance Minister Nirmala Sitharaman said in her budget speech to parliament on Saturday.
Presenting the proposals, Finance Minister Sitharaman said the government would support states, through a challenge route, in creating five University Townships near major industrial and logistics corridors. The speech said these planned academic zones would host multiple universities, colleges, research institutions, skill centres and residential complexes, with the stated aim of clustering higher education and innovation around economic corridors.
On higher education access and safety for women, Finance Minister Sitharaman proposed that, through Viability Gap Funding (VGF) or capital support, one girls’ hostel would be established in every district in Higher Education STEM institutions. The finance minister said the measure was intended to address challenges faced by female students due to prolonged hours of study and laboratory work.
To promote astrophysics and astronomy through immersive experiences, the budget proposed to set up or upgrade four telescope infrastructure facilities. These include the National Large Solar Telescope, the National Large Optical-Infrared Telescope, the Himalayan Chandra Telescope and the COSMOS-2 Planetarium, according to the speech.
The education proposals were framed as part of the government’s second “kartavya” — to fulfil aspirations and build capacity — which the finance minister described as central to making citizens strong partners in India’s economic progress.
Finance Minister Sitharaman also announced the establishment of a High-Powered ‘Education to Employment and Enterprise’ Standing Committee, which she said would focus on services as a core driver of Viksit Bharat. While its remit extends beyond education, the committee is tasked, among other things, with recommending measures to embed artificial intelligence in school curricula, upgrade State Councils of Educational Research and Training for teacher training, and propose ways to upskill and reskill technology professionals.
The budget did not provide sector-specific fiscal deficit targets, revenue figures or dedicated education allocations beyond the initiatives listed. No taxation changes or borrowing plans specific to education were mentioned in the speech.
The education measures were presented alongside proposals in health, design, the Orange Economy, tourism and skills development, which the finance minister said collectively aimed to expand professional pathways and strengthen human capital.