The Union Budget 2026–27, presented by Finance Minister Nirmala Sitharaman, has significantly increased the higher education budget, boosting funding across universities, research programmes and institutional bodies to strengthen academic quality and research capacity nationwide.
Higher Education Outlay and Overall Budget Increase
The Department of Higher Education under the Ministry of Education has been allocated Rs 55,727.22 crore for the 2026–27 fiscal year, reflecting an 11.28 per cent increase over the previous year’s budget estimate. This rise forms part of the overall Rs 1,39,289.48 crore allocation for the Ministry of Education, which itself has grown by 8.27 per cent compared with the 2025–26 budget.
This enhanced outlay underscores a renewed emphasis on empowering universities, technical institutions and research ecosystems to support future-ready education, innovation and industry linkage.
Increased Institutional Funding: Universities and Regulators
Funding for several core higher education institutions and regulatory bodies has been raised in Budget 2026:
- Central Universities: Allocated Rs 17,440 crore, up from the previous year.
- University Grants Commission (UGC): Budget raised to Rs 3,709 crore, marking double-digit growth.
- Indian Institutes of Technology (IITs): Funding increased to Rs 12,123 crore.
- National Institutes of Technology (NITs): Allocated Rs 6,260 crore.
- Indian Institutes of Management (IIMs): Budget raised to Rs 292 crore.
- Deemed Universities: Allocation increased to Rs 650 crore.
These increases aim to support infrastructure enhancement, faculty strengthening, academic programmes and improved student facilities at key higher education institutions.
Focus on Research and Technological Advancement
Budget 2026 places notable emphasis on research and innovation within higher education through several targeted funding initiatives:
- Prime Minister Research Chairs: Rs 200 crore allocated to establish chairs to drive research excellence.
- PM Research Fellowship (PMRF): Maintains Rs 600 crore support for top doctoral research endeavours.
- One Nation One Subscription (ONOS): Allocated Rs 2,200 crore for nationwide access to global research journals and publications.
- Centre of Excellence in AI for Education: Rs 100 crore earmarked to advance AI research, curriculum integration and skill building.
- World Class Institutions Scheme: Funding boosted to Rs 900 crore to elevate select institutions’ global competitiveness.
These research-linked allocations are designed to enhance India’s research capacity, enlarge PhD pipelines and better integrate academic inquiry with industry and global benchmarks.
Strategic Initiatives and Long-Term Outlook
Beyond institutional funding, the Budget 2026 also introduces initiatives to strengthen the academic environment across disciplines:
- Five university townships planned along industrial and logistics corridors to connect education with employment, innovation and regional development.
- Continued support for schemes such as PM-USHA (Pradhan Mantri Uchchatar Shiksha Abhiyan) to bolster state higher education institutions.
- Expanded allocation for skilling programmes and digital learning infrastructure to support holistic education ecosystems.
These developments signal a strategic shift towards fostering quality education, research excellence and stronger university-industry linkages in India’s higher education landscape.