Come July 23 and finance minister Nirmala Sitaraman will present the first union budget post the recent Lok Sabha elections. Incidentally, Nirmala Sitaraman will become the only finance minister after Morarji Desai to present the budget six times in a row. As against previous budgets that was centred making India Atmanirbhar over the past two terms, the BJP which has formed the government third time in a row, but with the support of allies is anticipated to make more populist announcements, backed by the demands of its allies.
In the education sector, there is a growing demand for increasing budgetary allocation, improving infrastructure, a boost to the edtech sector and more. Here is what education sector stalwarts anticipate.
“Students that hail from Below Poverty Line (BPL) and Low-Income Group (LIG) families should receive 100% GST exemption from all educational expenses, be it test-prep courses or job-oriented skill courses; as it takes away a significant portion of their net disposable income. The 18% tax slab is extremely high for a need as basic as education. The government should derive a mechanism to enable more students to receive quality education while making it affordable simultaneously. We welcome the GST exemption related to student housing; however, it is important to remove the ambiguities.” – Prateek Maheshwari, Co-Founder of PW and Chair of the India EdTech Consortium (IEC)
“The new budget should encourage corporates to allocate a minimum percentage of their annual CSR spends towards building research infrastructure, incubation facilities, and research funding at both public and private universities, with a maximum cap of INR 1 crore per university. Additionally, it can accelerate the Gross Enrolment Ratio by encouraging and allocating merit scholarships for underprivileged students, particularly female students, to enhance affordability and access to quality education. Implementing uniform taxation norms for home-grown institutions and foreign institutions establishing campuses in India can ensure a level playing field. A renewed focus on skill development programs run by universities, providing grants and subsidies to scale up these initiatives, particularly for high school dropouts and diploma students, is also crucial.” – Vishal Khurma, Chief Executive Officer (CEO), Woxsen University Hyderabad
“Some specific areas of favourable allocation in the budget should include : expansion of infrastructure for education, investment in skill development programs (particularly in areas that align with emerging industries), expansion of scholarships and other financial aid programs for students from economically weaker sections of society, implementation of new pedagogical methods that focus on learning for a lifetime, strengthening of vocational training programs to equip students with industry-relevant skills and increased investment in research and innovation in the field of education. There is also a need to upscale the education system to attract more foreign students to the country to promote India as a global study destination.” – Shweta Sastri, Managing Director, Canadian International School, Bengaluru
“One of the highlights of the Union Interim Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, was supporting higher education. We hope that the final budget continues to focus on this aspect while supporting NEP 2020, which recommends the importance of nurturing critical thinking and creativity in education at an early stage. We expect the budget to financially aid a teaching approach that encourages creative and critical thinking in school students, fosters an interdisciplinary understanding of community, integrates technology and prepares individuals to become adept problem solvers. One way of doing this could be by allocating funds towards school and design university collaborations. We also advocate financial support for technology innovation by fostering partnerships between ed-techs and higher education institutes. It will prepare a tech-literate workforce equipped to thrive in a competitive marketplace. We also need to enhance industry-academia collaboration to better align academic curricula with the evolving job market. Prioritizing financial support for these collaborations will be crucial, as it helps build strong connections between educational institutions and industries”. – Dr Anunaya Chaubey, Provost, Anant National University.
In Budget 2024, we expect the government to reduce the Tax Collected at Source (TCS) on foreign transactions related to educational expenses, which will alleviate financial stress on families sending students abroad. This move is crucial for making international education more accessible and supporting India’s global educational aspirations. Lowering TCS will ease the financial burden on families and encourage more students to pursue education overseas, thereby enhancing India’s representation on the global academic stage. Furthermore, the budget should allocate more funds to higher education, fostering public-private partnerships that can drive innovation and infrastructure development. Increased funding for vocational training, research and development (R&D), and teacher training programs is essential to prepare students for the evolving global job market. Strengthening industry-academia collaboration will ensure that academic curricula are aligned with market needs, equipping students with the skills required for international competitiveness. – Subhakar Alapati, Founder Director, Global Tree Careers.
The Union Budget 2024-25 should establish a comprehensive blueprint for a “Viksit Bharat”—a developed, inclusive, resilient, and self-sufficient India by 2047. With household financial savings at their lowest level in five years, there is a savings-investment gap that could be mitigated by offering higher tax benefits for small savings schemes. Private sector investment, now at its lowest in four years, needs to be stimulated by deepening the bond market and increasing allocations to institutions like NaBFID. Infrastructure constraints, such as the failure of PPP models, poor progress in transshipment ports, and railway safety issues, must be addressed. Farmers’ income levels should be increased through crop diversification, agricultural marketing reforms, and a push for farmer producer organizations (FPOs). Labour-intensive industries, particularly textiles and leather, should receive focused attention to boost job creation. The principle of “Sabka Saath, Sabka Vikas,” emphasizing support for the poor, women, youth, and farmers, will continue. However, there must also be a focus on addressing growing income inequalities. – Abhishek Gupta, CEO, Rau’s IAS Study Circle.
Expenditure on the education sector could be increased to at least 5% of India’s GDP. A fair and transparent central government-driven regulatory framework for attracting foreign investment in the K12 sector, similar to efforts in higher education, should be rolled out. Reforming and reorganizing the NTA in the best interests of students and to avoid future controversies is necessary. Investment in digital infrastructure to curb malpractices in competitive examinations should be announced. The reintroduction of the Higher Education Commission of India (HECI) Bill is crucial to form a single regulator for higher education in the country. There should be increased investment and intent in transforming teaching into a career of choice for the next generation, along with higher allocation to “train the teachers” initiatives. Higher budgetary allocation for building greenfield training facilities to meet future skilling requirements and further improvement of existing facilities is essential. Announcing a skilling census to identify the level of skills possessed and mapping them with the current and future demands of the industry will help identify areas for future investments by the government and corporates. Job-guaranteed linked skilling programs are more likely to deliver better results. Steps should be taken to increase industry participation in the sector to boost employability. – Rohin Kapoor, Partner, Education and Skilling – Management Consulting, BDO India.
“India’s journey with AI has been marked by innovation integrated responsibly into public systems. We look forward to continued support and investment in AI solutions that benefit society and foster collaboration between academia and industry. Our long-term vision for AI in India aims for widespread integration across sectors, empowering citizens with AI tools tailored to local needs. The upcoming budget can contribute by prioritizing AI research, infrastructure, and policies that promote ethical AI practices and responsible deployment. Beyond technology, our goal is to use AI to transform lives across healthcare, agriculture, and education. The ‘Making AI in India’ initiative resonates with Wadhwani AI’s commitment to local innovation with global impact, ensuring effective solutions for all Indians. The upcoming budget can address skill development in AI and ML through specialized training programs, incentives for skill development centers, and curriculum updates in collaboration with educational institutions.” – Shekar Sivasubramanian, Chief Executive Officer, Wadhwani AI.
“The budget has traditionally looked at a combination of grants, SPVs and tax breaks to support startups. Where we may have attempted to create capacity, we may have erred in not enabling an ecosystem that facilitates economic and societal outcomes through innovation. We’d like to see the budget create incentives that allow innovation ecosystem players – science & technology institutions, incubators, corporates and institutional investors – to come together an create multiplier effects for innovators. A voucher system that can be “redeemed” by startups with labs & research institutions and corporates will allow for collaboration in product development and rapid prototyping. Policy sandboxes can enable testing, validation and inter-operability in areas like inclusive finance, affordable healthcare and pervasive insurance. Fiscal incentives for institutions and corporates to proactively create an open-innovation environment create a win-win for all players. India is the third-largest startup ecosystem in the fastest-growing major economy; yet economic contribution by startups is still in single digits. There is an opportunity now to dramatically alter this.” – Anand Sri Ganesh, CEO of NSRCEL IIMB.
“Budget 2024 holds significant potential for nurturing the entrepreneurial spirit in India. As a co-founder of Raising Superstars, I hope to see increased funding and support for early-stage startups, especially those innovating in edtech and early childhood development. Investing in these areas can catalyze growth and pave the way for a robust, sustainable entrepreneurial ecosystem. Prioritizing initiatives that support digital infrastructure, education technology, and startup incubation will not only drive innovation but also empower the next generation of leaders to build transformative solutions for our future.” – Raghav Himatsingka (Co-founder, Raising Superstars)
“Looking ahead to the upcoming budget, we see a critical opportunity to address India’s skill gap through strategic initiatives. There are already promising efforts underway to strengthen the industry-academia interface and enhance professional skill development. Government support in incentivizing internships and apprenticeships will be pivotal in equipping our workforce with practical experience and readiness for employment upon graduation. Continuous learning and upskilling are imperative for professionals to navigate evolving market dynamics and technological advancements. Encouraging investments in skill certifications and leadership development programs through tax relief measures can significantly boost individual and enterprise readiness for future challenges. We look forward to budgetary measures that foster a skilled and adaptable workforce, positioning India as a hub for innovation and sustainable growth.” – Srinivasa Addepalli,Founder and CEO, GlobalGyan Leadership Academy
Firstly, it is imperative to increase spending on Education and Skills Development to 6% of GDP initially, with a progressive target of reaching 7% over the next five years. This investment is essential to ensure that our education system is adequately resourced to meet the challenges of the 21st century and beyond. Next, the establishment of a dedicated Higher Education Commission is essential. This commission will play a pivotal role in aligning education with employability, focusing on skill development for employment, fostering collaborations with renowned international universities, and internationalizing the approach of our universities to elevate select institutions into the global Top 200 rankings.
There is also an urgent need to establish a robust Research Foundation aimed at funding comprehensive research across various fields and disciplines within the education sector. Allocating funds in this Budget and operationalizing this initiative by the end of 2024 will catalyze innovation, promote excellence in education, and contribute significantly to India’s knowledge economy.
These strategic measures are crucial steps toward building a skilled workforce, enhancing educational outcomes, and positioning Indian universities as globally competitive centers of learning and research. – Ravichandran V – Chairperson & Trustee, eVidyaloka
To fully realize the transformative potential of technology in education, as envisioned in National Education Policy (NEP) 2020 and National Curriculum Framework (NCF), the government must take urgent steps to reduce the high GST burden on computers, edtech services, and innovative learning tools. Computers which are a basic requirement in education attract a GST of 18%. Edtech service providers also pay 18% GST. We need to energise our education system by bringing in new age learning tools like film, gaming, robotics etc into schools. All these segments attract a GST of 18% even if they are B2B models selling/delivering in school, thereby making it too expensive for schools to try out new methodologies in teaching and learning. These exorbitant taxes are significantly hindering schools from adopting essential digital infrastructure and pedagogical innovations. By creating a more favorable fiscal environment, the government can accelerate the integration of technology into classrooms, enhancing both the quality and accessibility of education. Furthermore, India’s growth as a research hub and innovative destination depends on preparing its young population for global competition through language proficiency and international certifications. This calls for investment in language training programs, skill development initiatives, and global partnerships. In a world where borders are becoming increasingly permeable due to technological advancements, it is important that we also do the same with our minds. Additionally, reducing the cost of technology in education will make it more accessible to students from all socioeconomic backgrounds, fostering greater equity and inclusion. – Syed Sultan Ahmed, Founder and Chief Learner, LXL Ideas
“A lot of structural changes have been taking place in the country ever since NEP2020 came into the picture 4 years ago. Time has come to see the implementation of the policies at the grassroot levels across the country, and when states take their own path, a unified vision becomes difficult to implement irrespective of how big or small the idea is. Prioritising on teacher development would be key as the teachers need constand upskilling to stay relevant in this dynamic landscape. The higher education sector has been allocated roughly 44,094 crores supporting infrastructure development, research etc. This is great but it accounts to less than 1% of the country’s GDP. In order to compete with the world’s best in higher education, especially in research and development, we would need to quadruple the allocated budget. Education in India has always been a key aspect of Indian families, and it needs to be given the prominence to build a culture of innovation from the bottom up.” – Ajitesh Basani, Executive Director-Administration, Acharya Bangalore B-School (Autonomous).
“As we eagerly await the Union Budget, it is clear that prioritizing education is fundamental to shaping our nation’s future. Allocating 8% of GDP to education reflects a strong commitment to cultivating a knowledgeable society capable of driving innovation and progress. By extending research grants to private institutes alongside government colleges, we stimulate innovation across diverse fields such as Architecture, ensuring that all educational institutions contribute to our research ecosystem. Moreover, the initiative to unify technology resources and streamline admission processes under ‘One Nation, One Admission’ is a crucial stride towards ensuring equal opportunities for students nationwide. This approach not only bridges the gap between urban and rural education but also enhances accessibility to educational resources for all learners, regardless of their background. Integrating Yoga and Meditation into the education system further emphasizes our holistic approach to student development, promoting both physical health and mental well-being. By embedding these practices into the curriculum, we not only nurture healthier individuals but also cultivate a more resilient and balanced society. Essentially, this budget is more than a financial plan; it is a transformative blueprint for an inclusive and empowered India. It sets the stage for a future where education is the cornerstone of progress, ensuring that every learner has the tools and opportunities to thrive and contribute meaningfully to our nation’s growth.” – Prof Anand Achari, Principal, VES College of Architecture
“Interested to see the upcoming Union Budget’s approach to the sector. A focus on technology-driven learning holds tremendous promise. Increased investments in online higher education and upskilling space could be a game-changer. Unlocking the potential of new-age technology like AI, GenAI, AR and VR to make education not just accessible nationwide, but truly engaging for students. This can foster a dynamic environment where industries and academia collaborate. We can create innovative solutions that address the ever-evolving skillsets required by our workforce. A well-crafted budget has the power to position India as a global leader in online education, empowering learners not just to learn, but to thrive in the digital age. This is an exciting time for the education sector.” – Ranjita Raman, CEO Jaro Education
As the Union Budget 2024 approaches, the recruitment and startup ecosystem eagerly anticipates further advancements in technology and innovation. In recent years, the integration of AI and machine learning has revolutionized the hiring process, making it more efficient, inclusive, and accessible. Our expectations from this budget are centered on continued support for digital infrastructure and technology-driven solutions that can streamline recruitment and foster entrepreneurial growth. Reflecting on last year’s budget, which laid a solid foundation for digital transformation by allocating funds for AI research and promoting startup ecosystems, we hope this year’s budget will build upon those initiatives. Specifically, we are looking for increased investment in AI research and development, enhancing talent acquisition, and matching candidates with the right opportunities more accurately. However, it is evident that many colleges and educational institutions are still lacking in technology, infrastructure, and resources. For instance, several institutions struggle with outdated computer labs, limited access to high-speed internet, and insufficient training programs for both students and faculty. These gaps hinder the ability of institutions to adequately prepare students for a tech-driven job market. Last year’s budget did not allocate sufficient funds to address these critical areas, leaving a significant portion of our educational infrastructure under-equipped for the future. We believe that the upcoming budget should prioritize substantial investments in educational technology and infrastructure. This includes upgrading computer labs, ensuring widespread access to high-speed internet, and providing robust training programs for digital skills. By doing so, we can better prepare our future workforce to meet the demands of a rapidly evolving job market. – Manikanth Challa, Founder & CEO, Workruit
Also read: Union Budget 2024-25 and Education: Hits and Misses
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