Credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has assessed the Union Budget 2026-27 as supportive of the education sector, citing increased budgetary allocation and policy measures focused on creativity, technology adoption and research in higher education. 

In a report titled ‘FY27 Education Budget: Spotlight on Employment, Upskilling, and Allied Healthcare & Medical Education’, Ind-Ra said that these steps are expected to support upskilling, employability and achievement of higher overall academic standards in the near-to-medium term.

The rating agency further noted that a higher budgetary allocation for the school and higher education sector in FY27 than FY26 revised estimate (RE), will facilitate the expansion of infrastructure in educational institutions, improve the quality of schooling and enhance access to creative programs in designing and animation, visual effects, gaming and comics (AVGC) sector, and advanced and digital-based learning.

Meanwhile, for higher education, the overall budget allocation in FY 2026-27 is Rs 55727.22 crore out of which scheme allocation is Rs 10142.40 crore and non-Scheme allocation is Rs 45584.82 crore. Besides, the budget allocation for the FY 2026-27 of Rs 83562 crore is the highest ever for the Department of School Education & Literacy.