Rs 500 Cr AI CoE In Education To Enhance Learning, Bridge Skill Gap

Hyderabad: Finance Minister Nirmala Sitharaman presenting the Union Budget 2025-26 on Saturday announced the establishment of Centres of Excellence in Artificial Intelligence (AI) for education with a total outlay of Rs 500 crore. AI-powered edtech startups in Hyderabad welcomed the move as a crucial step that will personalise and enhance learning bridging the gap in skills needed to be relevant in an evolving job market.

The initiative can shape a future where AI is not seen as a threat but as a tool for empowerment - helping students and professionals adapt, grow, and lead in the changing job market, say edtech startup founders.

“Establishing Centres of Excellence for AI in Education is a crucial step toward preparing the workforce for this shift. AI can personalise learning, enhance accessibility, and bridge skill gaps, ensuring students and professionals stay relevant in an evolving job market. At Vaave, we believe AI-powered alumni ecosystems can play a vital role in career advancement. Institutions must integrate AI not just in education but also in career guidance and lifelong learning.” Founder of Vaave, Paresh Masade told Bizz Buzz.

In the 2023 Union Budget three Centres of Excellence were announced for conducting research, developing applications and problem solutions driven by AI in the areas of agriculture, health and sustainable cities. The proposed CoE for AI in Education will serve as hubs for innovation, training and deployment of AI-powered solutions in the education sector.

“The push for AI Centres of Excellence and the additional Fund of Funds of Rs 10,000 crore for startups is a statement that India is ready to lead in AI-driven innovation. As we all know startups are already pushing the boundaries of AI, but access to cutting-edge research and financial backing has always been a hurdle, but now this move bridges both gaps. We can now focus on building scalable, real-world AI solutions rather than just chasing capital,” Executive Director of One Window Overseas Education, Ankit Jain said.

With these and other previously announced initiatives, the founders are confident that the country can move from ‘India consuming AI’ to ‘India creating AI’ for the world.