New Delhi, February 5, 2026 — Finance Minister Nirmala Sitharaman presented her record ninth consecutive Union Budget on February 1, 2026, framing it as a “Yuva Shakti–driven budget” that places India’s young population at the heart of the nation’s journey toward Viksit Bharat by 2047. With total expenditure projected at around ₹53.5 lakh crore and a fiscal deficit targeted at 4.3% of GDP (a marginal improvement from the previous year’s revised estimate), the budget maintains fiscal prudence while prioritizing human capital development, emerging technologies, employability, and inclusive growth.
The budget signals a clear shift from traditional degree-focused education to outcome-oriented skilling, particularly in AI, creative industries, and services-led expansion. A record ₹1.39 lakh crore has been allocated to the education sector (an 8% increase), with sharp rises in skill development funding. Key initiatives include a High-Powered ‘Education to Employment and Enterprise’ Standing Committee to evaluate AI‘s job impact, embed AI in school curricula, drive upskilling in emerging tech, and enable AI-based job matching aiming to elevate India’s share in the global services economy.
In the creative domain, the establishment of AVGC (Animation, Visual Effects, Gaming, and Comics) Content Creator Labs in 15,000 secondary schools and 500 colleges, backed by the Indian Institute of Creative Technologies (Mumbai), targets a talent pipeline for nearly 2 million professionals by 2030. This promotes regional content in local languages and positions India as a global hub for digital creativity.
Industry leaders have hailed these measures as forward-looking and transformative.
Rahul Attuluri, CEO and Co-Founder of NxtWave Disruptive Technologies, described the budget as a strong focus on emerging technologies, particularly AI, as core drivers of Viksit Bharat, signalling a shift from degree-centric education to skill-centric employability. He praised the ‘Education to Employment’ standing committee as a timely move, noting: “The budget’s push to expand higher education capacity and improve student access through scale, inclusion, and strengthened infrastructure will help create vibrant learning ecosystems and build a future-ready education system for students across Bharat. The focus on assessing AI’s impact on jobs and aligning skills with future demand positions India to build a globally competitive workforce and move closer to a 10% share of the global services economy by 2047.”
Karun Tadepalli, Co-Founder & CEO of byteXL Pvt Ltd, highlighted the emphasis on human capital and deep tech: “The government’s continued emphasis on skill development, AI-driven learning, research, and greater participation of women in STEM reflects a shift from education as access to education as outcomes… The real opportunity is to embed industry-aligned curricula within campuses, enable hands-on learning with emerging technologies, and bridge the gap between academic knowledge and real-world application.”
On the AVGC push, Rajiv Chilaka, Founder & CEO of Green Gold Animation, called it transformative for India’s creative economy: “By establishing Animation, VFX, Gaming and Comics Content Creator Labs across thousands of educational institutions, the government is building a deep, sustainable talent pipeline aligned with the industry’s projected requirement of nearly 2 million professionals by 2030… These measures not only strengthen skill development but also lay the foundation for India to emerge as a global hub for high-value digital content, gaming, and animation production.”
Rural and financial inclusion received sustained attention through the Bharat Vistaar AI platform, AgriStack expansion, rural infrastructure, and credit boosts like a ₹10,000 crore SME Growth Fund. Murty LVLN, CEO of Dvara KGFS, noted: “The Budget underscores the importance of strengthening grassroots incomes as a foundation for India’s growth… Sustained and well-calibrated policy support will be critical for institutions like Dvara KGFS to continue providing responsible, last-mile financial solutions.”
Chandan Churiwal, CEO and Whole Time Director at Assets Care & Reconstruction Enterprise Ltd (ACRE), described it as a “mature and detail-oriented budget” that maintains continuity with limited tinkering, remains fiscally prudent, and promotes incremental measures across sectors. He added: “High level committee to review banking system to make the same future ready is likely to accelerate industry consolidation. This coupled with proposed framework for increasing liquidity is corporate bonds is likely to strengthen debt markets.”
The budget’s emphasis on transformational skilling, industry partnerships, and tech integration positions India’s youth as the engine of sustained 7%+ growth amid global challenges. Success will hinge on effective execution and collaboration across government, academia, and industry turning demographic potential into tangible economic advantage.
Last Updated on: Thursday, February 5, 2026 10:25 am by Business Byte Team | Published by: Business Byte Team on Thursday, February 5, 2026 10:25 am | News Categories: Business
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