Budget 2026–27 gives a Yuva Shakti, AI driven push for India’s future
Sitharaman unveils sweeping reforms to empower India’s youth, through education, skills, and technology, positioning them as cornerstone of Viksit Bharat 2047
The Union Budget 2026–27 has been described by Finance Minister Nirmala Sitharaman as a “Yuva Shakti–driven budget,” providing a strong push for India’s youth through expanded education opportunities, fostering innovation, skill development programmes, entrepreneurship support, and technology-driven initiatives.
According to Sitharaman, the government has prioritised youth empowerment, referred to as Amrit Peedhi, as a cornerstone in its vision of building a Viksit Bharat (Developed India) by 2047.
The focus will be on effectively trying to bridge the education-to-employment gap, fostering innovation, and ensuring inclusive growth for young Indians. Sitharaman said 350 reforms have been rolled out to drive job creation, making this year’s budget strongly focused on Yuva Shakti (youth power).
High-powered panel
To achieve these goals, the government will establish the 'Education to Employment and Enterprise' (EEE) Standing Committee, a high-powered panel, which will align education with job opportunities, with a special focus on the services sector and the impact of AI.
Services sector focus
The panel’s objective will be to position India as a global leader in services, aiming for a 10 per cent share of the world’s services market by 2047. The panel will identify priority areas to maximise growth, employment and export potential in the services sector.Further, it will also recommend necessary skill development pathways and policy interventions to adapt to changing employment trends.
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Notably, Sitharaman has given a renewed push in this budget to strengthen India’s services sector, positioning it as a key driver of growth, jobs and exports in a technology-driven economy. The budget also prioritised sectors with high growth potential, including IT, finance, tourism, healthcare, and logistics.
AI and technology focus
The committee will also specifically assess the impact of artificial intelligence (AI), automation, and digital transformation on job roles, skill requirements and propose measures to address future workforce needs.
“The 21st century is technology driven. Adoption of technology must benefit all sections of society — from farmers in the fields to women in STEM, youth looking to upskill and young people seeking new opportunities,” the finance minister said in her Budget speech.
The budget also highlights the creation of a "national destination digital knowledge grid" to build a digital ecosystem for tourism, aiding local employment.
Skilling centres
With an eye to make youth employable, five National Centres of Excellence for skilling to be set up with global expertise as well.
To strengthen skill-career pathways for youth, especially in healthcare, selected higher education institutions will be supported to train one lakh allied health professionals over the coming years.