Budget 2025: Gen Z needs upskilling to enter workforce; education sector hopes for technology integration

NEW DELHI: With just a fortnight away for Budget 2025, academics and edtech companies hope for strong integration of emerging technologies, deeper industry-academia collaborations, and specialized upskilling programmes in high-demand fields such as artificial intelligence (AI), digital technologies, and renewable energy.

The Union finance minister Nirmala Sitharaman will present the 8th consecutive Budget 2025 on February 1. Last year, the minister presented an interim budget in view of the general elections and later presented the full budget in July. This will be the second full budget in PM Narendra Modi’s third term.

Budget allocation for the school and higher education for the financial year 2024-25 is Rs 1,20,627.87 crore, a 6.84% increase compared to last year’s education budget. While the education sector has been demanding for 6% of Gross Domestic Product (GDP) allocation to the public education system, the academics have pushed for increasing upskilling courses and integrating latest technologies.

'Need to upskill Gen Z students'

Sri Charan Lakkaraju, founder and CEO of Student Tribe, said: "India’s education ecosystem stands at a critical juncture, with an unprecedented opportunity to empower the nation’s youth for success in a rapidly evolving global economy. With Gen Z comprising 377 million individuals and already influencing $860 billion in consumer spending, the country is poised to experience significant demographic and economic shifts. As the workforce grows and 78 million new job opportunities are projected by 2030, it becomes increasingly important to focus on upskilling students and preparing them for emerging roles.”

Lakkaraju said in the next decade, “every second Gen Z individual will enter the workforce, with their economic impact expected to exceed $2 trillion in consumer spending”. “There is a need for deeper industry-academia collaborations and specialized programs in high-demand fields such as AI, digital technologies, and renewable energy” to upskill Gen Z students.

Mahindra University VC said: “The growing emphasis on skill-based education has aligned academic curricula with industry demands, fostering employability and entrepreneurship.”

“The success of the PM Internship Scheme highlights the growing demand for hands-on, real-world experience, and we anticipate further expansion of such opportunities. As Gen Z continues to shape consumer behaviour across industries, it is crucial to ensure that the education system evolves to meet their expectations and future needs,” he said.

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Hybrid learning, digital infrastructure

In addition to quality education, experts have also emphasised the need for mental health support within schools and enhanced digital infrastructure for hybrid learning.

Expressing confidence in the forthcoming budget, Yajulu Medury, Mahindra University vice-chancellor, hoped that the Centre will prioritise investments in higher education and vocational training, aligning educational outcomes with global workforce requirements.

“The implementation of hybrid learning models has facilitated enhanced connectivity between students and educators, thereby expanding access to quality educational resources across diverse geographical locations.

With the edtech companies booming in India, AI-powered tools and data analytics have personalized learning pathways, helping students achieve their full potential while bridging learning gaps.

“As we move toward 2025, the outlook for education in India is promising. We anticipate a stronger integration of emerging technologies such as AR, VR, among others for creating immersive and secure learning experiences. Sustainability and social impact will increasingly influence curriculum design, reflecting the global call for responsible innovation. Collaboration between academia and industry will deepen, fostering research, internships, and real-world exposure for students,” he said.