Union Budget 2026: Allocation to Education Sector Increases to ₹1.39 Lakh Crore The much-awaited union budget 2026 was finally presented by Finance Minister Nirmala Sitharaman on 1 February 2026. If we compare it to the previous year, this year’s budget emphasizes more on future-proof education that prepares students for the future and teaches them skills. Some of the main areas of focus are vocational training, digital learning infrastructure, STEM facilities, and building teachers’ skills. What is noticeable is that this is the highest-ever allocation made, an 8.27% increase from last year. In this article, we will discuss the major changes the sector will witness and how they will impact the future of education. What Are the New Initiatives in the Education & Employment Sectors? There will be a high-powered standing committee for “Education to Employment and Enterprise” that suggests ways to develop the service sector to be a key driver of Viksit Bharat. By 2047, this will give India a 10% share of the global services market, making it the world’s leader in services. The Committee will make a list of the most important areas to focus on to maximize growth, jobs, and exports. They will also look at how new technologies, like AI, will affect jobs and the skills needed for those jobs, and will suggest ways to deal with these changes. Check out the previous budget: Union Budget 2025: A major boost for higher education Key Takeaways: The committee will assess the impact of emerging technologies, including artificial intelligence, on jobs. It will also examine changing skill requirements and recommend suitable policy and skilling measures. Compared to last year, Union Budget 2026 places stronger emphasis on skilling and future-ready education. Increased focus has been placed on vocational training and industry-aligned skills. The Budget highlights the expansion of digital learning infrastructure across education levels. Additional emphasis has been given to STEM (Science, Technology, Engineering, and Mathematics) education facilities. Teacher capacity building has been identified as a key priority area. INR 500 crores for the Centre for Excellence in Artificial Intelligence in Education. What’s New in Union Budget 2026 for Education Here are some of the key budget proposals for the education sector. The Union Budget 2026 proposes to support states, through a challenge-based approach, in setting up five University Townships near major industrial and logistics corridors. These University Townships will function as integrated academic hubs, consisting of several universities and colleges, along with research and training facilities. To increase access and inclusion into higher education, every district will receive a new hostel for female students. The funding for these hostels will come from the viability gap funding (VGF) program and from government assistance, and the program will target issues pertaining to female students studying in STEM fields. The Budget also proposes policy changes aimed at reducing the financial burden on students pursuing education abroad. Budget 2026 proposes establishing Content Creation Labs to align Education and Creativity with the Creative Economy. AVGC (Animation, Visual Effects, Gaming and Comic), is one of the areas being prioritized for content creation labs with 15,000 schools and 500 colleges expected to offer full-time AVGC courses. Digital infrastructure remains a priority under Budget 2026. The Budget provides expanded broadband connectivity in schools. Additional support has been announced for technology-enabled learning environments across education institutions. Conclusion The Union budget 2026 has brought major developments in the education sector. The notable step that’s been taken is how AI skills building, digital innovation and design labs are given the highest priority to build a future-ready workforce. This is a great initiative to help students with greater learning opportunities to develop their skills and have access to world-class education.
Why Is AI Literacy Essential for a Future-Ready Workforce? Did you know? According to a survey conducted by IBM, over the next three years, executives widely agree that artificial intelligence will be a key driver of innovation; 85% believe it will enable business model innovation, while 89% expect it to drive innovation in products and services. What was once perceived as a distant possibility that is AI transforming every aspect of work, is now becoming a present-day reality. This shift highlights the growing significance of AI literacy. Organizations increasingly expect their workforce to stay abreast of emerging trends in Artificial Intelligence. But there is still a big gap: many working professionals are not upskilling, and many graduates start working without knowing much about AI. To build a workforce that is ready for the future, it is important to close this gap. So, this blog discusses everything you need to know about AI literacy and its importance in building a future-ready workforce. What is AI Literacy? AI literacy is an individual’s knowledge of how to understand, question, and responsibly apply artificial intelligence in his or her daily activities and in the workplace. AI literacy does not solely consist of an individual’s understanding of technical terminology and coding, but rather the ability to make informed decisions about the use of AI within our increasingly AI-centric world. It is not a fixed skill. It exists on a continuum, starting with concepts of awareness to advanced risk evaluation or understanding potential misuse. AI Literacy has always been a vital skill for those working in tech jobs. But today? Is the situation unchanged? In today’s society, there is a great deal of interaction with AI on a daily basis via social media, chat services, navigation applications, and generative tools. Overall, understanding how AI influences your decisions, information, and the opportunities you have is an important life skill. As emphasized by experts in AI education, being AI literate empowers people to make better decisions for themselves and their communities. Everyone deserves access to AI knowledge, not to build AI, but to live and work confidently alongside it. What AI Literacy Means in Modern Workplace? The table below shows the focus areas of AI and what it means in practice: Focus Area What It Means in Practice Getting familiar with AI and machine learning Employees should understand the basics, that is, what AI is, how machine learning learns from data, and how automation helps businesses make faster and smarter decisions without human micromanagement. Getting comfortable with AI-powered tools AI tools like chatbots, sentiment analysis, and NLP-based platforms are already part of daily work. Employees should know what these tools do well, where they struggle, and how to use them to reduce effort rather than add complexity. Making sense of AI-generated insights Do not accept AI’s output without question. Employees must learn how to build confidence when reviewing, verifying, challenging, and validating AI-provided data. By doing so, employees can make decisions ethically and within the context of their business and customers. Together, these areas form the foundation of practical AI literacy in today’s workplace. Steps to Build AI Literacy in a Workplace Here are several methods to develop AI literacy and boost your company’s future: Offer AI Training That Reflects Employees’ Roles – By providing practical workshops and online courses based on employees’ specific job duties, employers can teach employees about the real-world applications of AI and not just its theoretical uses. Promote Lifelong Learning – By offering continued support for ongoing AI education through the use of mentorship programs and internal networks, companies can offer better opportunities for employees to learn. Create an AI-Friendly Culture – By educating employees on how AI works and the benefits it provides, leaders can develop a supportive workplace that encourages the acceptance and utilization of AI. Develop Policies Regarding AI Governance & Ethics – Clear policies and guidelines should be established for the responsible use of AI and its alignment with the organization’s strategic objectives. Importance of AI Literacy in Building Future-Proof Workforce AI Literacy creates a skilled workforce in an evolving job market as highlighted above. But how do AI Literacy support the building of a future-proof workforce? Let’s take a look at how: Teaching workers the AI skills that will enable them to adapt to AI-enhanced roles as well as changes across different industries. Develop critical thinking and informed decisions when using AI. Enable ethical, and transparent utilization of AI systems. Better work opportunities within technical and non-technical roles. Support continuous education/learning & long-term career resilience. Aid companies in developing flexible, innovative workforce. Read More: Fastest Growing AI Job Skills Why Working Professionals Fall Behind? Working professionals have been experiencing difficulties in keeping up with rapid changes to AI. This is not due to a lack of interest or ability, but rather, the working conditions. The primary cause for most professionals’ inability to develop new skills is exhaustion due to long hours, deadlines, and commitments outside the workplace. Upskilling continues to be viewed as an individual responsibility by most organizations, rather than as an organizational priority, in most workplaces. Organizations typically provide little to no support; thus, it falls upon the employees to find the time after work hours to learn new AI skills. Another issue with developing AI skills is that the technology continues to evolve very quickly, and many working professionals do not know where to begin developing these skills, whom to rely on! The growing skill gap isn’t because professionals don’t want to learn; it’s because skill development isn’t built into their everyday work routine. How Online Manipal Helps? Students may wonder why they should choose Online Manipal for AI skill development. To answer the query, Online Manipal have integrated AI-focused specializations and electives into their online degrees to meet the evolving market needs. Manipal Academy of Higher Education (MAHE) offers an online MCA with a specialization in AI & Machine Learning, while Manipal University Jaipur (MUJ) provides an online MCA focused on AI & Data Science. Additionally, we have MUJ’s online BCom (Bachelor of Commerce) program, including electives such as Accounting with AI and Digital Marketing with AI. An Interesting Find: Bridging the AI Skills Gap: How Online Manipal Programs Align with Industry Needs Conclusion AI is now a part of people’s everyday lives, and it is changing how companies hire, train, and build their teams. To achieve a workforce that is ready for the future, organizations must develop the necessary skills and knowledge about AI. The real question now is not whether AI will transform work, but how prepared are we to grow and succeed alongside it? Reference: https://www.ibm.com/thought-leadership/institute-business-value/en-us/report/business-trends-2025
How is AI Redefining Personalized Learning? Imagine this scenario: two students learn from the same platform. One grasps concepts quickly, while the other struggles to understand the very same topic. Every student learns differently; some like learning via books, while others prefer practical knowledge with real-life examples or detailed explanations. Each student also has his or her own amount of time and ability in which to learn and understand what has been taught. This raises an important question about the ‘one-size-fits-all’ approach to education. If our learning needs are different, why does our learning experience remain the same? The next topic for discussion will be how AI will be used to create a more personalized learning experience for students which can adapt to the rate of each student’s learning, the level of support they require, and the learning strategies that work best for them. This is where we can discuss AI redefining personalized learning. With the use of AI-powered learning platforms, students are no longer fixed to a learning path. Instead, the content adapts to the rate of each student’s learning, the level of support they require, and the learning strategies that work best for them. What is the Meaning of Personalized Learning? Personalized learning is an educational approach that is built with respect to each learner’s ability to comprehend, process, and apply information at their own pace. So, here instead of teaching through the same sequence for all learners, it will be tailored specifically to each learner. It majorly focuses on: Students’ individual learning pace Students should progress at a pace that reflects the level of knowledge they have gained rather than according to any predetermined timetable. Learners’ preferred methods of learning There are many different approaches that can be used to convey information; some learners are able to grasp theoretical information quickly while others benefit from more hands-on experience. Identification of strengths and gaps A personalized learning environment will identify both students’ strengths, based on what they already know, and any weaknesses, where they need assistance. Students’ interested areas & goals A personalized learning environment encourages students to align their learning experience with their individual interests and academic goals. AI in Personalized Learning: Common Features in Online Learning Platforms Today, artificial intelligence plays an important role in education, especially in online modes of learning. It helps improve how students learn by making the experience more flexible, interactive, and learner focused. Many online degree programs now use AI to move beyond basic, content-based teaching and offer learning environments that adjust to each student’s pace, understanding, and learning needs. Here are a few AI-driven changes that helps in assisting students better: AI-enabled LMS dashboards to track learner progress and engagement. Adaptive course pathways within LMS portals based on performance. AI-driven content recommendation engines (videos, readings, practice sets). Automated assessments and instant feedback integrated into the platform. AI chatbots and virtual teaching assistants inside learning portals. Read More: AI in Education – Reimagining Teaching, Learning, and Leadership How AI-Powered LMS Platforms Enable Personalized Learning Personalized learning is made possible by an AI-enabled Learning Management System (LMS). An LMS is essentially a web-based tool that organizes and delivers structured learning experiences in a digital environment. An LMS is much more than a tool for delivering content. It provides an all-in-one platform for teaching and learning. When an LMS uses artificial intelligence, it can track user data to identify trends and establish learning paths that are specific to each learner’s needs, rather than following a one-size-fits-all approach to education. Advantages of Using Advanced LMS for Online Learning To understand the impact of an advanced LMS portal, here are some key advantages: Enables customized individual paths for learners based on their specific needs (e.g., learning pace and preferred method of learning). Increased engagement of learners through collaborative and interactive learning opportunities, which include live class discussions. Centralized access to all course materials means students can access their learning materials 24/7 and from any location. Increases transparency into student progress, allowing teachers to identify areas for improvement early and to provide necessary help in a timely manner. How Online Manipal Supports Online Learners The Learning Management System (LMS) provided by Online Manipal is a centralized solution to support, manage, and deliver all of the online education content. The LMS has been developed to provide a structured but flexible environment to allow for the delivery of course material across all programs in a systematic manner. Using the LMS, learners have access to a central pool of academic resources that includes course materials, audio/video recordings of lectures, exam and assignment materials, and forums for online discussions. When these resources are in one central platform, learners can access their course materials at anytime, anywhere in the world, while continuing to meet the academic structure of their respective programs. The LMS also facilitates interactive learning, providing an opportunity for students to participate in discussion forums and collaborative projects and to communicate with faculty and fellow students. In this manner, students can connect with their classmates and faculty in live sessions and clarify any concerns they may have about their courses, thereby enhancing their overall experience with Online Manipal. Lumen LMS at Online Manipal: AI-Powered Features Helping Learners Online Manipal adds AI-powered tools to its Lumen LMS to make it even more personalized and helpful for students. Below are several key attributes that assist students: AI-powered SummarizeMe For quick revisions, this feature summarizes online lecture videos on each of the courses and related pdf study notes for quick reference to enable students to revise better. AI QuizMe To test one’s knowledge, this feature uses the course material to create quizzes automatically so students can test their knowledge and consolidate their understanding of the information presented right after it has been taught. AI Teacher Provide students with answers promptly and are available 24/7 to be used as virtual academic tutors and provide guidance when students may have questions that arise while they are studying. AI for Learning Paths Provide the student with a student-defined schedule to keep them on the schedule they established. Conclusion “I believe AI is going to change the world more than anything in the history of humanity. More than electricity.” – Kai-Fu Lee, AI Expert As the quote says, AI is changing the world. It is changing the world at a rapid rate and is now integrated into every aspect of life. When it comes to online learning, it has made students’ lives significantly easier, be it in understanding complex concepts, learning at their own pace, or collaborating more effectively with peers and instructors. So, education is evolving and the real question is, are we ready to embrace learning that adapts to us, instead of adapting to it?
