Union finance minister Nirmala Sitharaman on Sunday announced setting up of a new National Institute of Design (NID), three All India Institutes of Ayurveda (AIIA), five university townships near industrial corridors, one girls hostel in every district to support science, technology, engineering and mathematics (STEM) education.
In her budget speech, she proposed to support Indian Institute of Creative Technology (IICT) Mumbai to establish Animation, Visual Effects, Gaming, and Comics (AVGC) content creator labs in 15,000 secondary schools and 500 colleges.
Sitharaman said that the budget is focused on “AI application” and is a “Yuva Shakti (youth power-driven)” one. She shared the government’s plans to boost employment and fulfil aspirations of the youth and proposed a high-powered standing committee on Education to Employment and Enterprises, which would recommend measures on the services sector.
“This will make us a global leader in services with a 10% global share by 2047,” Sitharaman said, adding that the panel would prioritise areas to optimise growth potential, employment, and exports. She added the panel would assess how AI and other emerging technologies impact jobs and recommend measures for skill requirements.
She said India’s AVGC is a growing industry projected to require two million professionals by 2030. “I propose to support the IICT Mumbai in setting up AVCG content creator labs in 15,000 secondary schools all over the country and 500 colleges,” she said.
IICT is India’s first institution for creative technology on the lines of the Indian Institutes of Technology and the Indian Institutes of Management. In July 2025, the Maharashtra government started a satellite campus of IICT, offering 18 industry-driven courses in the AVGC-XR sector, with the Centre’s help.
Sitharaman said that India’s design industry is expanding rapidly, and yet there is a shortage of designers. “I propose to establish a new NID to boost design education and development in the eastern region of India,” she said. There are seven NIDs in India, recognised as Institutes of National Importance.
She said the Union government will support states in creating five university townships in the vicinity of industrial and logistics corridors. “These planned academic zones will host multiple universities, colleges, research institutions, skill centres, and residential complexes.”
She said prolonged hours of study and laboratory work pose some challenges for female students at STEM institutions. “Through viability gap funding (VGF) or capital support, one girls’ hostel will be established in every district.”
She announced that four telescope infrastructure facilities will be set up or upgraded to promote astrophysics and astronomy via immersive experiences. Sitharaman said three new AIIAs will be established to export quality Ayurvedic products to meet growing global demand. There are two AIIAs in New Delhi and Goa.
Sitharaman announced three new National Institutes of Pharmaceutical Education and Research and upgrading seven existing ones as part of the Biopharma SHAKTI (Strategy for Healthcare Advancement through Knowledge, Technology and Innovation) mission.
Centurion University (Odisha) vice chancellor Supriya Pattanayak said the budget reflects a long-term, systems-level approach to building India’s future-ready education ecosystem. “The focus on expanding higher education infrastructure through university townships, strengthening medical and pharmaceutical education...inclusion initiatives such as girls’ hostels in every district will help bridge access gaps and improve participation from underserved regions…,” said Pattanayak.
“Together, these measures move Indian education beyond enrolment numbers towards outcomes—skilled talent, regional innovation hubs, and globally competitive institutions—positioning education as a central driver of India’s economic growth, healthcare leadership, and technological self-reliance in the years ahead.”
Curated by Shiv Shakti Mishra
