The upcoming Union Budget 2026 should prioritise making digital learning more affordable while stepping up public investment in education to address India’s widening skilling gaps, according to NIIT Limited CEO Pankaj Jathar.
Jathar said artificial intelligence and digital skills have moved from being optional to becoming central to employability and competitiveness, making access to quality digital education critical for India’s workforce and economic growth.
“AI and digital are no longer peripheral skills. They are the core gateway to jobs and competitiveness,” Jathar said, adding that digital learning is playing an increasingly important role in India’s skilling ecosystem.
He said affordability remains a key barrier to wider adoption of digital education at scale. At present, most online courses are taxed at 18 per cent under the goods and services tax framework, which adds to costs for learners and limits accessibility, particularly for students and working professionals from price-sensitive segments.
Union Budget 2026 — Rationalise GST on digital learning programmes to 5%
Jathar said rationalising GST on verified digital learning programmes to a lower rate of 5 per cent would help expand access to high-quality education, including AI-enabled courses, and support the growth of training providers and education startups.
“Lowering the tax burden would make digital learning more affordable and accelerate adoption at scale,” he said, adding that such a move could also help training companies expand sustainably while contributing to India’s long-term talent needs.
Beyond tax measures, Jathar said there is a need for a broader national push on education and skilling, anchored in higher public spending. He urged the government to set a clear target of allocating 6 per cent of gross domestic product (GDP) to education, a long-standing benchmark that has been discussed but not fully realised.
He said higher absolute budgetary allocations should focus on strengthening digital infrastructure, expanding public private partnerships in skilling and reaching underserved and remote regions.
“India’s skilling gaps are well identified now,” Jathar said. “This is a crucial phase where fiscal incentives for low-cost digital learning need to be combined with sustained public investment in education.”
The Union Budget 2026 comes at a time when policymakers are seeking to balance fiscal discipline with the need to invest in human capital to support long-term growth. Industry stakeholders have been calling for targeted interventions to improve employability, especially as rapid technological change reshapes job requirements across sectors.
Jathar said a coordinated approach that links tax policy, education spending and industry collaboration could help deliver both social equity and economic returns, while strengthening India’s position in the global talent landscape.
