Education experts hail budget proposal to set up five university townships in industrial corridors

New Delhi, Feb 1 (PTI) Education experts on Sunday hailed the government proposal in the budget for 2026-27 to set up five university townships, saying it will help bridge the gap between academics and industry.

Five university townships in the vicinity of major industrial and logistic corridors, girls' hostel in every district, setting up of content creator labs in 15,000 schools and 500 colleges and reduction of the tax collection at source (TCS) rate to 2 per cent for education, are among the proposals announced in the Union Budget for the education sector.

The sector has an allocation of over Rs 1.39 lakh crore, including Rs 55,727 crore for higher education.

Ashwin Fernandes, Chair, QS India and Vice President, Strategic and International Engagement, said the government's move to create 5 university townships in the vicinity of major industrial and logistic corridors is a very novel move that could go a long way in bridging the gap between academics and industry.

"It is great to note that these planned academic zones will also host research institutions and skill centres. The budget's proposal to establish 1 girls' hostel in every district will greatly help students who put in prolonged hours of study and laboratory work in STEM institutions," he said. Shishir Jaipuria, Chairman, Jaipuria Group of Educational Institutions, said the budget reflects a decisive policy shift from viewing education as an end in itself to an enabler of employment and enterprise.

"The focus is on two important domains – STEM education and employability. The proposed 'Education to Employment and Enterprise Committee' and the 5 University Townships are positive steps towards developing industry-readiness, creating skilled career pathways and leveraging technologies like AI for driving the growth of India’s services and manufacturing sectors," he said.

Atul Temurnikar, Chairman and Co-founder, Global Schools Group, noted that the emphasis on the creative and content economy is particularly significant, as it recognises creativity and intellectual property as national assets in an AI-driven world. "Integrating creativity, design and storytelling into education can help students build original thinking, leverage technology responsibly and access new-age careers — positioning India as a culturally confident, globally competitive talent hub," he said.

Supriya Pattanayak, Vice Chancellor, Centurion University, hailed the budget for its emphasis on inclusion initiatives, such as girls' hostels in every district and the promotion of Indian-language digital learning, which will help bridge access gaps and improve participation from underserved regions.

Arun Rajamani, Managing Director, Cambridge University Press and Assessment, South Asia, said the reduction in TCS under the LRS for education and medical expenses abroad from 5 pc to 2 pc is a pragmatic step that will ease cash-flow pressures for families and students and reduce friction in legitimate education-linked remittances.

Somak Raychaudhury, Vice-Chancellor and Professor of Physics, Ashoka University, said the push for new universities, design institutes and stronger STEM ecosystems signals a clear intent to democratise access and build a future-ready talent pipeline.

"Equally important is the budget's focus on strengthening India’s scientific and innovation backbone - from advanced research infrastructure such as astronomical telescope facilities on Indian soil to AI-enabled learning, Creator Labs, and targeted investments in biopharma and healthcare skilling. The proposed Education-to-Employment Standing Committee is a strong step towards tighter academia–industry alignment," he said. PTI GJS GJS HIG HIG