5 university townships, one STEM girls' hostel per district: FM Sitharaman in Budget push for education

Sitharaman proposed the setting up of five university townships in the vicinity of major industrial and logistic corridors.

Updated on: Feb 1, 2026, 14:14:05 IST

By HT News Desk

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Union Finance Minister Nirmala Sitharaman, in her speech while presenting the Union Budget, spoke about boosting the education sector.

The Finance Minister also announced the establishment of a girls' hostel in higher education STEM institutions in every district. (HT Photo/ Arvind Yadav)

For this, Sitharaman proposed the setting up of five university townships in the vicinity of major industrial and logistic corridors. The Finance Minister also announced the establishment of a girls' hostel in higher education STEM institutions in every district.

A National Institute of Hospitality will also be set up to act as a bridge between academia, industry and the Government under the Union Budget 2026, Sitharaman said.

Key highlights from FM Sitharaman's Budget speech

The Union Budget proposed the upgrading and establishment of new institutions for Allied Health Professionals (AHPs) in ten selected disciplines, and three new All India Institutes of Ayurveda. Sitharaman also announced the setting up of a new National Institute of Design through the Challenge route in eastern region of India.

The Budget also included the setting up of AVGC (Animation, Visual Effects, Gaming, and Comics) Content Creator Labs in 15,000 secondary schools and 500 colleges.

‘Education to Employment and Enterprise’ committee

In her Budget speech, Finance Minister Sitharaman announced the setting up of a high-powered ‘Education to Employment and Enterprise’ standing committee.

“I propose to set up a High-Powered Education to Employment and Enterprise Standing Committee to recommend measures that focus on the Services Sector as a core driver of Viksit Bharat,” the Finance Minister said.

Also Read | Budget 2026: ₹5,000 crore to develop CER around temple towns, tier-2, 3 cities

Sitharaman said such measures, aimed at the growth of the services sector, will make the country a global leader in services, with a 10 per cent global share by 2047.

According to the Finance Minister, the committee will look to prioritise areas to optimise the potential for growth, employment and exports, while assessing the impact of emerging technologies – including AI – on jobs and skill requirements. Based on this, the panel will recommend specific measures for including AI in the education curriculum from school level.

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