Here is a look at what stakeholders expect from the Union Budget 2024 for the education segment.
Improving digital networks is the need of the hour
Abhishek KG, Co-founder of Clapingo, a platform for online spoken English classes, expects the upcoming budget to prioritise improving digital networks, recognising their key role in advancing India’s tech-driven growth. “According to the Annual Status of Education Report 2023, almost 90% of young people have access to a smartphone at home, with approximately two-thirds utilising it for educational purposes. However, the existing 18% GST on online education imposes a significant financial strain on learners nationwide,” he says. His wish list includes policies that empower startups to thrive and contribute to the country’s global tech leadership.
More funds to the Education Ministry
Educationists and stakeholders in the education sector mostly laud the GOI’s focus on digital learning, which is in line with the vision of National Education Policy 2020. Anil Nagar, Founder and CEO of Adda247, which is India’s largest vernacular test prep platform caters to more than 50 million students from Tier II and Tier III cities, says that “More funds for the Education Ministry will help improve digital infrastructure, skill-based learning, and global education partnerships, particularly in Tier-2 and Tier-3 cities. Moreover, with lowered GST on educational services, we will be able to make our services more affordable and students will get easier access to student loans,” he says. These initiatives can help empower the youth with relevant job skills, believes Nagar.
Focus on Enhancing Teacher Training and Infrastructure
It is expected that the budget will also focus on enhancing infrastructure, advancing teacher training, and promoting inclusive education. According to Rustom Kerawalla, Founder Chairman of VIBGYOR Group of Schools, emphasis on these can lead to equitable access to high-quality education and build a resilient system that prepares students for real-world scenarios.
“These factors, coupled with technology, will play a pivotal role in shaping a dynamic and experiential learning environment. Through collaborative tech-driven solutions, infrastructure upgrades, comprehensive training, advancements in pedagogy, and adapting to new-age learning methodologies, we can unleash the potential of educational reform. I strongly believe that with these measures, India can establish a future-ready education system that is inclusive, equitable, and globally competitive,” says Kerawalla.
Emphasis on Green Education, Skilling, and AI
Manav Subodh, Founder of 1M1B (One Million for One Billion), an AI-focussed skilling organization, is a champion of green education, skilling and Artificial Intelligence.
“As India races to achieve net-zero emissions by 2070, the 2024 Union Budget must embrace the transformative potential of green skilling and AI. These emerging areas are key to unlocking a sustainable future and powering India’s economic growth,” he says.
Subodh further suggests that the government should encourage the PPP model in green skilling and set up Green Skill Academies in different states to address the immediate need to equip 1 crore youth with green skills by 2025, integrating these programs with the Skill India Mission.
“This will not only create jobs in the burgeoning green economy but also, help India meet its climate commitments. Additionally, the budget should create a dedicated fund and provide incentives for climate technology and AI startups,” observes Subodh.
“The budget must establish AI hubs and centres of excellence focused on open-source AI, democratising access, and enabling indigenous use case development addressing local sustainability challenges in areas like transportation, agriculture, and energy efficiency,” he adds.
Reforming NTA, transforming teaching as a career of choice and more
Rohin Kapoor, Partner, Education and Skilling – Management Consulting, BDO India, has a pretty long wish list while it comes to the Education Budget 2024. Here is a look at them:
- Expenditure on education sector could be increased to at least 5% of India’s GDP
- Rolling out a fair and transparent central government driven regulatory framework for attracting foreign investment in K12 sector, similar to efforts in higher education
- Reforming & re-organising NTA in the best interests of the students & to avoid future controversies
- Announcement of investment in digital infrastructure to curb malpractices in competitive examinations
- Reintroduction of Higher Education Commission of India (HECI) Bill to form one single regulator for higher education in the country
- Increased investment and intent in transforming teaching as a career of choice for the next
- Higher budgetary allocation for building greenfield training facilities to meet future skilling requirements and further improvement of existing facilities
- Announcement for conducting skilling census to identify level of skills possessed & mapping it with the current/future demands of the industry. This will help us in identifying areas for future investments by the government or corporates.
- Job guaranteed linked skilling programs are more likely to deliver better results
- Steps to increase participation of industry in the sector to increase employability
Reduction of GST on edtech services
Under the current rules, services offered by edtech companies attract 18% GST. “This impacts affordability in online education. This is a concern which edtech companies have been talking about since the last budget session. A reduction in GST on edtech services will lower service prices, boost affordability. We are hopeful the government will consider lowering the GST from the current 18%,” says Tarun Saini, CEO & Co-founder, Vidyakul, which is India’s first vernacular e-learning platform, aiming to make education more accessible in tier-II and tier-III cities. They offer live lectures and pre-recorded courses for students from Class 9 to 12 in Hindi, Gujarati, Marathi, and Hinglish.
“In addition to this, we are looking forward to a closer collaboration between policy makers, governmentand startups in the form of PPPs (Public Private Partnerships) in the education sector,” he adds. Saini is of the opinion that connecting startups with education policy makers can create a powerful synergy to solve targeted problems and significantly enhance efforts to address critical issues. “This will help create opportunities and enable a level-playing field for disadvantaged children in Bharat,” he says.
