Union Budget 2026-27: Govt to Set Up 5 University Townships, 3 New All India Institutes of Ayurveda

Union Budget 2026-27 announces five university townships near industrial corridors and three new All India Institutes of Ayurveda, along with NIPER expansion, NID campus and skill initiatives.

The Union Budget 2026-27 announced creation of five university townships near major industrial corridors and the establishment of three new All India Institutes of Ayurveda, as Finance Minister Nirmala Sitharaman presented her ninth consecutive Budget in the Lok Sabha on February 1.

The university townships will function as cluster hubs comprising multiple universities, colleges and skill development centres. According to the Budget announcement, these townships will be located in the vicinity of major industrial corridors and are intended to bring higher education institutions closer to industry-linked employment zones.

Five cluster-based university hubs

The proposed university townships will house multiple higher education institutions within a single geographic zone, including universities, colleges and skill training centres. The model is expected to support large student populations and shared academic infrastructure.

The Budget document states that these hubs will focus on integrated education and skills training, with an emphasis on industry-relevant courses.

Three new All India Institutes of Ayurveda

The government also announced the establishment of three new All India Institutes of Ayurveda. These institutes will expand national-level capacity for Ayurveda education, training and clinical research.

Other education-related announcements

• In addition to university townships and Ayurveda institutes, the Budget outlined the following measures:
• A biopharma-focused education and research network will be developed through three new National Institutes of Pharmaceutical Education and Research (NIPERs) and the upgradation of seven existing NIPERs.
• A network of 1,000 accredited clinical trial sites will be created across the country.
• Professional bodies including ICAI, ICSI and ICMAI will design short-term modular courses to train a cadre of “Corporate Mitras”.
• The Indian Institute of Creative Technologies, Mumbai will receive government funding for capacity building in colleges and institutes offering such courses.
• A new National Institute of Design (NID) will be set up in the north-eastern region.
• A pilot programme will train 10,000 tourist guides across 20 iconic tourist destinations through a 12-week course in collaboration with an IIM.
• A National Institute of Hospitality will be established.
• Nimhans 2.0 to be constructed in Ranchi, Jharkhand

The education announcements form part of the broader Union Budget 2026-27 proposals presented by the Finance Minister in Parliament.