Summary of this article
Education, skilling and jobs linked through new infrastructure
Travel, study abroad cheaper via TCS, baggage, duties
Sports goods cheaper, healthcare and services employment expanded
The Union Budget 2026 has set out a broad array of measures that impact youth in fields such as education, skilling, employment, taxation and international mobility. The framework has proposed a link between learning and work opportunities, reducing financial barriers for students and young professionals, and simplifying costs associated with travel and personal imports.
Education And Learning Infrastructure
Budget 2026 has proposed 5 university townships close to major industrial and logistics corridors. These townships are planned as integrated townships containing a university, research centres, skill institutes and student housing nearer to economic centres.
At the school and college level, the government has declared AVGC (Animation, Visual Effects, Games and Comics) labs in 15,000 secondary schools and 500 colleges to help students with creative and digital skills needed in the services and media sectors.
A new National Institute of Design will be set up in the eastern part. In terms of STEM (science, technology, engineering, and mathematics) fields, the Budget has proposed to set up girls' hostels in every district with technical institutions, to enhance accessibility and living facilities of women students.
The Budget 2026 has also included investments in scientific learning infrastructure, including upgrading telescope and planetarium facilities to create interest in space sciences.
Skilling And Entry-Level Employment
Skills development was a major focus area in Budget 2026. A high-powered 'Education to Employment and Enterprise' Standing Committee has been proposed to identify sub-sectors of services with job potential, along with an assessment of skill gaps and the impact of technology, such as artificial intelligence, on employment.
In healthcare, the existing allied health institutions will be upgraded, and new allied health institutions will be established across ten disciplines, including radiology, anaesthesia technology, and optometry. These steps are designed to result in about 100,000 allied health professionals in five years.
The government has also proposed to train 1.5 lakh caregivers through nationally recognised courses on a mix of care skills, wellness and use of assistive devices.
Services, Tourism And Creative Work
The services sector remains an important source of employment for young professionals. In tourism, the Budget has recommended the upgrade of the National Council for Hotel Management and Catering Technology to the National Institute of Hospitality, to match the training with the needs of the industry.
A pilot program will train 10,000 tourist guides working in 20 iconic destinations on a 12-week course developed in collaboration with a management institute. The Budget has also proposed a National Destination Digital Knowledge Grid to digitally document cultural and heritage sites, opening up opportunities for researchers and tech professionals.
Nature-based tourism projects such as trekking and hiking trails, bird-watching and turtle trails are planned to provide for local employment around tourism services.
Sports, Healthcare And Living Assistance
Budget 2026 has announced a renewed Khelo India Mission focusing on structured talent development, training infrastructure, coaching and sports science, aimed at creating organised pathways in sports careers beyond athletes.
Healthcare infrastructure will be broadened through new institutes and regional medical centres, and a second National Institute of Mental Health and Neurosciences will be established. And existing mental health facilities will be modernised.
Taxation, International Travel And Study Abroad
There is one major change for students and travellers as the Tax Collected at Source (TCS) has been reduced under the Liberalised Remittance Scheme (LRS). The TCS rate on overseas education and medical remittances has been brought down to 2 per cent from 5 per cent. This reduces initial tax expenses for families who can afford education and medical treatment abroad.
For international travel, the Budget has reduced TCS on overseas tour packages to a flat 2 per cent. Earlier, the capitalisation was 5 per cent for bookings up to Rs 10 lakh, and 20 per cent for bookings above Rs 10 lakh. The new flat 2 per cent rate, which will come into effect from April 1 2026, removes minimum thresholds previously increasing the cost of travel for young professionals and students.
Reducing Costs Of Personal Imports And Travel
Budget 2026 has also proposed changes in customs and baggage rules to make it cheaper for international travellers and shoppers. The duty-free baggage allowance has been raised from Rs 50,000 to Rs 75,000 for passengers returning from abroad, which means that it would be easier to bring goods back home without having to pay customs duty.
In addition, the basic customs duty on personal-use imports has been reduced from 20 per cent to 10 per cent. This duty cut effectively reduces the cost of items purchased abroad, such as sports goods, electronics and personal accessories, thus making them cheaper for young travellers and shoppers.
Budget 2026 has also aligned fiscal measures and structural investments with the needs of a services-driven workforce, enabling learning, travel and consumer costs to be more predictable and more affordable for the youth.
