Finance Minister Nirmala Sitharaman on Sunday (1st February outlined a set of major steps to strengthen India’s education, skill development and creative economy while presenting the Budget 2026 in Parliament.
The announcements focused on preparing the workforce for future demand, expanding higher education facilities and improving access for women students.
Union Budget 2026-27 | Union Finance Minister Nirmala Sitharaman says,"…I propose multiple steps towards setting up new institutes, University townships, girls hostel and telescope infrastructure facilities in investment in higher education sector. A girls hostel will be built… pic.twitter.com/mqegmq3NCc
— ANI (@ANI) February 1, 2026
Push for the creative economy and AVGC sector
A key focus of the Budget was the fast-growing animation, visual effects, gaming and comics (AVGC) sector.
The government said this industry is expected to need nearly 2 million skilled professionals by 2030. To help meet this demand, the Centre will support the Indian Institute of Creative Technologies, Mumbai, in setting up AVGC content creator labs in 15,000 secondary schools and 500 colleges across the country. The aim is to build skills at an early stage and widen the talent base for the creative economy.
Girls’ hostels in every district
To improve access to education for women, Sitharaman announced that one girls’ hostel will be established in every district under the viability gap funding (VGF) scheme.
She said that long hours of study and lab work often create difficulties for female students, and the new hostels will help address this challenge, especially in districts where accommodation facilities are limited.
University townships linked to Industry
The finance minister also outlined plans to strengthen links between higher education and industrial growth. The Centre will support states in developing five university townships near major industrial and logistics corridors. These townships will integrate universities, colleges, research centres, skill hubs and housing facilities, creating education ecosystems aligned with local industry needs.
New National Institute of Design in eastern India
To meet the growing demand for design professionals, Sitharaman announced that a new National Institute of Design will be set up in eastern India through a challenge-based route. The institute will help strengthen design education in the region and improve access to formal design training beyond existing centres.
Education-to-employment focus committee
In another major proposal, the finance minister announced the formation of a high-powered “Education to Employment and Enterprise” Standing Committee.
The panel will focus on strengthening the link between education, jobs and business, with special attention to services-led growth. It will study the impact of emerging technologies such as artificial intelligence on employment, assess future skill requirements, and recommend measures to boost jobs, exports and economic growth in line with the vision of Viksit Bharat by 2047.
