Allocation for Skilling initiatives in Union Budget 2026 The allocation for the Ministry of Skill Development and Entrepreneurship has risen from INK 6,100 crore in 2025-26 to INR 9,885.80 crore during FY 2026-27, an increase of around 62.06 per cent. Initiatives covered for Skill development in the Budget Samarth 2.0 has been announced to modernise and upgrade the textile skilling ecosystem through collaboration with industry and academic institutions. AVGC Content Creator Labs: To boost the “Orange Economy” (creative industry), 15,000 secondary schools and 500 colleges will host content creator labs for Animation, Visual Effects, Gaming, and Comics (AVGC), supported by the Indian Institute of Creative Technologies, Mumbai. Existing institutions for Allied Health Professionals (AHP) to be upgraded and new AHP institutions to be established in private and government sectors. This will cover 10 selected disciplines, including optometry, radiology, anesthesia, OT Technology, Applied Psychology and Behavioural Health and add 1,00,000 AHPs over the next 5 years. A strong Care Ecosystem, covering geriatric and allied care services will be built. A variety of National Skill Qualification Framework (NSQF)-aligned programmes will be developed to train multiskilled caregivers combining core care and allied skills, such as, wellness, yoga and operation of medical and assistive devices. 1.5 lakh caregivers will be trained. Pilot scheme to upskill 10,000 guides in 20 iconic sites via standardised 12-week hybrid training course, in collaboration with an Indian Institute of Management (IIM). Divyangjan Kaushal Yojana has been announced to ensure dignified livelihood opportunities through industry-relevant training for persons with disabilities in IT, AVGC, hospitality, food & beverages. 20 new national waterways to be operationalised in five years, with regional training institutes to develop skilled manpower. Ship repair hubs will be established at Varanasi and Patna. Government will facilitate professional institutions such as Institute of Chartered Accountants of India (ICAI), Institute of Company Secretaries of India (ICSI), Institute of Cost Accountants of India (ICMAI) to design short-term, modular courses and practical tools to develop a cadre of 'Corporate Mitras', especially in Tier-Il and Tier-III towns. University townships: The Government will support states in developing 5 University Townships located near major industrial and logistics corridors. These will integrate universities, research centers, and skill institutes with residential facilities. The proximity of university towns with industrial corridors will lead to the desired mingling of industry and academia and reduce the gap between the two. Girls’ Hostels: To improve access for female students, especially those in STEM or lab-heavy courses, the budget proposes setting up one girls’ hostel in every district through Viability Gap Funding (VGF). Additional Medical Seats: An addition of 10,000 medical seats this year, moving toward a 5-year goal of adding 75,000 seats. Veterinary Science: A loan-linked capital subsidy scheme to add 20,000 professionals in the veterinary and para-veterinary sectors. The Mahatma Gandhi Gram Swaraj Initiative has been launched to strengthen Khadi and handloom, support rural artisans, and promote traditional crafts. New Institutes to be set up A new National Institute of Design to be established in the Eastern region. Three new National Institutes of Pharmaceutical Education and Research (NIPER) proposed, along with the upgrading of seven existing ones. Skill development in technologies such as AI and Semiconductors AI for Education: A dedicated Center of Excellence in Artificial Intelligence for education announced with an outlay of ₹500 crore. India Semiconductor Mission 2.0 (ISM 2.0) - With the expansion beyond chip manufacturing, the mission has included equipment, materials, complete stack design and native IP creation. More importantly, the growth is pegged on industry-focused R&D and specialised training centres, to generate a highly skilled semiconductor-focused workforce.