Indian finance minister Nirmala Sitharaman presented the Union Budget 2025-26 on 01 February 2025, and while many are celebrating the big headline—no income tax for individuals earning up to INR 12 lakh per annum—there’s another story unfolding. One that goes beyond tax relief and straight into the classrooms, digital labs, and career dreams of millions of students.
As a community committed to ensuring counseling in every school and purpose for every child, let’s closely examine what this budget truly means for the educational landscape in India. From school infrastructure to digital learning and career readiness, does this budget pave the way for a brighter future? Let’s dive in.
A Record Allocation to Education: Does It Address Key Challenges?
The Ministry of Education has received an allocation of over INR 1.28 lakh crore, marking a steady increase from last year’s INR 1.14 lakh crore.
Breakdown of Allocation:
- School Education: INR 78,572 crore (Highest-ever allocation)
- Higher Education: INR 50,067 crore
- University Grants Commission (UGC), NCERT, IIMs: Increased funding
- IISERs & World Class Institutions: A notable budget cut
Measuring the budget allocation with the estimated impact
- While these numbers reflect the government’s commitment to strengthening education, the real question is whether this allocation translates into meaningful, outcome-driven improvements.
- The budget should prioritize improving rural and underserved schools by building new classrooms, renovating existing facilities, and creating digital labs with internet access and trained teachers.
- Funding should be linked to measurable outcomes like student performance and dropout rates, focusing on modern teacher training and AI tools for personalized learning.
- The government should conduct third-party audits to assess the impact of funding and establish accountability measures to track improvements in student learning and performance.
Bridging the Gap: Addressing Inequality in Access and Quality
The introduction of the Bharatiya Bhasha Pustak Scheme aims to make digital-form Indian language books available to students. This initiative can be transformative, especially for those who struggle with English-medium education. However, the execution and availability of quality content will be critical.Additionally, broadband connectivity in all government secondary schools under the BharatNet project is a significant step toward digital inclusivity. In an era where e-learning is revolutionizing education, ensuring students in rural areas have equal access to knowledge is imperative. The counseling community has consistently advocated for equitable access to education, and this move aligns with that vision.
The counseling challenge
- Bridging the urban-rural divide in education is not just about infrastructure but also quality career counseling, mentorship, and exposure—aspects that remain under-addressed in this budget.
- The announcement of broadband for all government secondary schools under the BharatNet project is significant. To further bridge the digital divide, a national initiative to provide affordable devices for students in rural and low-income areas is essential. Additionally, teacher training in digital literacy is vital for effective e-learning engagement.
- Digitization should extend beyond textbooks. The government should create local language e-learning platforms and ensure free access to interactive learning tools such as virtual labs, simulations, and podcasts.
- Many rural students lack access to career counseling, which is critical for future success. With local language support, the government should establish online career counseling hubs in rural schools, connecting students to national and global job markets for vocational and higher education opportunities.
Focus on Higher Education: Expanding IITs, but What About GER?
The government announced additional infrastructure in five IITs to accommodate 6,500 more students and expand IIT Patna’s hostel and other facilities. While this is an encouraging step for higher education, addressing the larger challenge of the Gross Enrolment Ratio (GER) is crucial.GER and the Future of Higher Education
- The National Education Policy (NEP) 2020 sets a target of 100% GER by 2030.
- Currently, GER is 77.4% at the secondary level and only 56.2% at the higher secondary level.
- Retention rates stand at 45.6% for higher secondary, raising concerns about dropout rates and career guidance.
Are the GER targets too ambitious?
- If we are to meet the ambitious 50% GER target for higher education, we need stronger career counseling programs in schools that can help students make informed choices about their futures.
- To enhance the Gross Enrollment Ratio (GER), the government should broaden access to various institutions, including regional and state universities, alongside IITs. This involves improving infrastructure, expanding course offerings, providing targeted scholarships for economically disadvantaged students, and creating a national credit transfer system.
- Career counseling should be a key component of secondary education to boost GER. IC3 Institute's counseling programs, for example, help students understand and prepare for diverse academic and vocational opportunities.
- The government should invest in mentorship programs to retain students through personalized guidance. Collaboration between schools, colleges, and career counselors is crucial to help students make informed decisions about continuing their education or exploring alternative career options.
Job Creation and Skill Development: The New Approach
A key highlight of this budget is its multi-faceted approach to skill development, integrating education with employability. Unlike previous budgets that had standalone skill development programs, this year’s budget embeds skill training within industry-focused sectors.
Key Initiatives:
- 50,000 Atal Tinkering Labs to boost scientific innovation
- National Centres of Excellence for Skilling (Manufacturing, AI, etc.)
- AI Centre of Excellence for Education (INR 500 crore allocation)
- Embedded skilling programs in agriculture, tourism, energy, and more
- Rs 1.5 lakh crore for infrastructure expansion, leading to employment generation
AI & its future in education
- The inclusion of AI in education is a visionary step, ensuring students are prepared for the future. However, students may struggle to connect these skills with real-world career paths without structured career counseling. The counseling community continues emphasizing the importance of integrating skill-based learning with career counseling to ensure students can apply their knowledge effectively.
- Initiatives like Atal Tinkering Labs and AI Centres of Excellence need industry partnerships to align skills with job market demands. The government should invest in internships, apprenticeships, and live projects to help students apply their skills in real-world settings.
- Skill training must be paired with career guidance. Every student in a skill development program should access personalized counseling to explore career pathways.
- The government should enhance job portals tailored for vocationally trained students, connecting them directly with employers in sectors like agriculture, AI, and tourism for smoother transitions into employment.
- The 2025 theme at IC3 highlights "Aligning Counseling with the Future of Work," as a sub-theme, focusing on the role of AI and automation. As these technologies reshape the workforce, it's essential for counseling to adapt by equipping students with the skills and adaptability needed for success. Understanding how technology intersects with creativity and education will help counselors guide students in navigating future career paths.
School Education and the Road Ahead
The Economic Survey 2024-25 highlights some critical statistics:
- 24.8 crore students enrolled across 14.72 lakh schools
- 69% of schools are government-run, but private schools enroll 32.6% of students
- Dropout rates:
- 1.9% (Primary)
- 5.2% (Upper Primary)
- 14.1% (Secondary)
Giving direction to the purpose
- While dropout rates have declined, retention at higher secondary remains a concern. The budget’s focus on early childhood development through Saksham Anganwadi and Poshan 2.0 programs is commendable, as nutritional well-being directly impacts cognitive development and career readiness.
- To reduce dropout rates, career counseling should begin in middle school. Structured guidance on the importance of education and students’ personal strengths can help them understand future opportunities and maintain interest in school.
- Career counseling must also address mental health, as stress and uncertainty can lead to disengagement. Investment in mental health programs in schools is essential for helping students cope with academic pressures.
- Making higher education affordable for economically disadvantaged students is crucial. The government should offer lower interest rates on student loans and provide interest-free loans to eliminate financial barriers to education.
The Missing Piece: Career Counseling and Financial Accessibility
The Union Budget 2025-26 is a progressive and forward-looking budget, with education at its core. The increased allocations, digital initiatives, and industry-driven skill development programs are all positive steps. However, without a robust career counseling ecosystem, the true potential of these initiatives will remain underutilized.
Ganesh Kohli, Founder of the IC3 Movement, points out, “While this budget lays a strong foundation for student success through initiatives like Atal Tinkering Labs and increased digital access, career counseling remains a crucial yet under-addressed area in secondary education. Structured guidance is essential to improving academic performance, mental well-being, and long-term employability. Additionally, making higher education more affordable through rationalized loan interest rates and interest-free loans for economically weaker students is vital.”
The global counseling community has been reiterating that career counseling is the missing link that connects education, skill development, and employability. While the government has focused on infrastructure and funding, equal emphasis must be placed on structured career counseling programs to help students navigate their education and career paths.
The road to 100% quality education and employability is long, but with continued collaboration between schools, counselors, industries, and policymakers, we can ensure that every child finds their purpose and a fulfilling future.
Sources:
- The Hindu
- Financial Express
- Indian Express
