Union Budget bets on ‘Education to Employment and Enterprise’ model as edtech sees AI-Led skills boom

India’s Union Budget 2026 has laid out a roadmap for the high-tech “Education to Employment and Enterprise” (EEE) model, a framework gaining traction among edtech firms and skill-development institutions as the government pushes to align learning outcomes with workforce needs.

The budget proposes launching 15,000 Content Creator Labs and 1,000 specialised AI hubs, part of a broader effort to move education beyond traditional classroom methods and toward industry-ready skills.

Bringing focus to the initiatives, Prateek Maheshwari, Co-Founder, PhysicsWallah, told Business Today that, “the sector (education and creative digital media sector) will require millions of professionals and we are finally moving beyond rote-learning methods to make Bharat skill-based and future-ready right from the classroom.”

“The Education to Employment and Enterprise model has the potential to bridge the gap between degrees and employability,” he added. 

Maheshwari also welcomed the reduced 2% TCS on foreign education for students pursuing education abroad, while flagging concerns around taxation at home.

“To truly democratise education for the masses within India, we still need to address the GST on educational services. Affordability is the key to access, and that remains our next big challenge,” said Maheshwari.

Arpit Mittal, Founder & CEO at SpeakX.ai, said, “The education to employment standing committee is a timely move, as it can help align learning outcomes with industry demand and continuously review how AI and new technologies are reshaping services and job roles.”

Mittal also pointed to the integration of the Bhashini AI ecosystem into the EEE framework, saying edtech startups such as SpeakX.ai could help boost personalisation in language coaching across regional markets.

Pankaj Jathar, CEO, NIIT Ltd, said the Union Budget 2026 “underscores that India is at a decisive inflexion point where economic growth, inclusion, and global competitiveness will be shaped by how effectively we skill our people across sectors. The emphasis on AI-led national missions, capacity building for nearly 25 crore individuals, and the proposed ‘Education to Employment and Enterprise’ Standing Committee signals a clear intent to align learning with real industry outcomes, especially in services, which can anchor India’s journey towards a Viksit Bharat with a 10% global share by 2047.”

At the same time, Jathar stressed the need to accelerate execution at scale to ensure broad-based gains. He told Business Today that, “ India must now accelerate large-scale, industry-aligned skilling, integrating AI, emerging technologies, and employability, so every sector and region can participate meaningfully in the nation’s next phase of development.”