The Union Budget 2026-27 has proposed the creation of five university townships near major industrial corridors and the establishment of three new All India Institutes of Ayurveda. Finance Minister Nirmala Sitharaman presented these education-focused measures in the Lok Sabha on 01 February 2026, marking her ninth consecutive Budget.
The announcements aim to expand higher education infrastructure, strengthen skill development, and support specialised training in emerging sectors.
Five University Townships Near Industrial Corridors for Higher Education Growth
The Budget has introduced a plan to develop university townships as cluster-based education hubs located close to industrial employment zones. These townships will function as integrated centres comprising multiple universities, colleges, and skill development institutions within a single geographic area. The model is expected to help accommodate large student populations while enabling shared academic facilities and resources. The Budget document highlights that these university hubs will focus on:
- Integrated higher education and skill training
- Industry-relevant courses linked to employment needs
- Stronger collaboration between institutions and industrial corridors
This initiative is intended to bring education closer to areas with high job potential and improve workforce readiness.
Three New All India Institutes of Ayurveda for National Capacity Building
The government has also announced the establishment of three new All India Institutes of Ayurveda. These institutes will strengthen national-level Ayurveda education and expand opportunities for clinical research and professional training.
The move is expected to enhance capacity in traditional medicine systems while supporting healthcare education across India.
Union Budget 2026-27 Education Proposals in Other Sectors
Along with the university townships and Ayurveda institutes, the Budget outlined several additional education and training initiatives. These measures reflect a broader focus on specialised learning, research infrastructure, and professional skill development:
- Development of a biopharma-focused education and research network through three new NIPERs and upgradation of seven existing NIPERs
- Creation of a network of 1,000 accredited clinical trial sites across the country
- Professional bodies such as ICAI, ICSI, and ICMAI to design short-term modular courses for training “Corporate Mitras”
- Government funding support for the Indian Institute of Creative Technologies, Mumbai to strengthen capacity building in creative education
- Establishment of a new National Institute of Design (NID) in the north-eastern region
- A pilot programme to train 10,000 tourist guides across 20 iconic destinations through a 12-week course in collaboration with an IIM
- Proposal to set up a National Institute of Hospitality
- Construction of Nimhans 2.0 in Ranchi, Jharkhand
Education and Skill Development Focus in Budget 2026-27
The education-related announcements in Union Budget 2026-27 form part of the government’s broader plan to align learning with industry needs, expand specialised institutions, and improve national training infrastructure.
Further details on implementation timelines and funding allocations for these initiatives are expected in official policy releases in the coming months.