The National Education Policy (NEP) 2020 represents one of India’s most ambitious education reform frameworks, seeking structural transformation across school education, higher education, teacher development, digital learning, inclusion, and governance. While the policy promises long-term gains in human capital formation, employability, innovation, and social equity, its implementation carries a substantial and multi-layered economic burden. This paper examines the financial implications of implementing NEP 2020, with particular attention to the fiscal pressures on the central and state governments, educational institutions, and households. The study argues that the cost burden emerges not merely from expanded public spending, but also from recurring expenditure on teacher recruitment and training, digital infrastructure, early childhood care and education, curriculum redesign, institutional restructuring, equity measures, and administrative transition. NEP 2020 itself acknowledges that public expenditure on education in India has been around 4.43% of GDP and calls for raising it to 6% of GDP, indicating the scale of fiscal expansion required for effective execution. The paper further situates this burden within the context of rising contemporary education allocations, including the Ministry of Education’s ₹1,39,289.48 crore budgetary allocation for 2026–27, which reflects continuing financial commitment but also underlines the magnitude of resources needed. By analyzing direct, indirect, short-term, and long-term costs, the paper concludes that the economic burden of NEP 2020 should be understood as a developmental investment; however, its success depends on equitable burden-sharing, strong Centre–State fiscal coordination, phased implementation, and efficient resource utilization.