“The Union Budget 2025–26 allocated ₹1.28 lakh crore to education, including ₹20,000 crore for private R&D and ₹500 crore for AI Centres of Excellence. While encouraging, outcomes remain weak: India produces 1.5 million engineers annually, yet only 42.6% are employable (Mercer-Mettl 2025). R&D spend is just 0.7% of GDP, and non-elite graduates, nearly 99% of the talent pool, struggle due to outdated, theory-heavy curricula lacking practical skills such as BIM, VDC, and advanced manufacturing. The construction sector alone loses over ₹1.5 lakh crore annually due to digital skill gaps.
Budget 2026 must shift from credentialism to vocational engineering skills. Key priorities include reducing GST on skill-based courses to improve affordability, offering tax incentives for industry-led skilling platforms and digital labs, and launching a National Construction Tech Skilling Mission with live-project learning and apprenticeship incentives. Industry-aligned vocational training already delivers up to 95% placement for non-elite graduates. Empowering the 99% through targeted skilling reforms is critical to driving employability, productivity, and long-term economic growth.”
