Education Budget 2026 misses NEP ambition as founders push for quality, skills and AI focus

The Union Budget for 2026 has left key education stakeholders unconvinced, with founders and education leaders warning that allocations fall short of the scale required to meet the goals set under the National Education Policy. While the government has reiterated its commitment to reform, voices from the startup and academic ecosystem argue that spending priorities remain tilted towards enrolment numbers rather than learning depth, employability and future skills.

The overall allocation for education has seen only a modest rise, insufficient, according to sector leaders, to address long standing gaps in school infrastructure, teacher training and higher education capacity. Several founders said the gap between policy vision and budgetary backing is becoming harder to ignore, especially when NEP benchmarks demand sustained public investment.

A key concern raised was the continued emphasis on improving Gross Enrolment Ratio, without a parallel push on classroom quality and outcomes. Education entrepreneurs noted that higher enrolment alone does not translate into better learning, particularly when schools struggle with teacher shortages, outdated pedagogy and uneven digital access.

Founders also flagged the limited focus on skills aligned with emerging industry needs. With artificial intelligence and advanced technologies reshaping the job market, they said the budget missed an opportunity to scale AI focused courses, vocational pathways and industry linked training across schools and colleges. Without this shift, graduates risk being underprepared for future roles, despite higher participation in formal education.

Startups working in the skilling and edtech space called for clearer support mechanisms, including grants, pilot programmes and partnerships with public institutions. They stressed that innovation driven models can complement government systems, but require predictable funding and policy backing.

Officials from the Ministry of Education have maintained that reforms under NEP will be rolled out in phases, with states playing a central role in implementation. Yet founders countered that without sharper budget signals, states and institutions may struggle to move beyond incremental change.

As expectations rise from both learners and employers, education leaders said future budgets must place quality, skills and relevance at the core of spending decisions. The message from the sector is clear, meeting NEP targets will need more than intent, it will require sustained and strategic investment that reshapes how learning is delivered on the ground.