Budget 2024: Industry Leaders Expect Increased Allocations for Education Sector
As India prepares for its election year budget, there is a growing anticipation for a significant allocation to the education sector. With a strong GDP and positive economic sentiment, industry leaders and experts are outlining their expectations and wishlist for the upcoming budget, emphasizing the crucial role that education plays in driving innovation, digitalization, and knowledge-based growth.
Jaideep Kewalramani, COO and Head of Employability at TeamLease Edtech, highlighted the need for a thrust on Higher Education and improved gross enrollment ratio. While fund allocation has increased in recent years, the percentage of GDP allocation towards education has remained unchanged. Kewalramani emphasized that for an economy driven by innovation, digitalization, and knowledge, a significantly higher percentage of the GDP should be allocated to education.
The EdTech industry has emerged as a vital bridge between industry and academia, addressing employability and skilling challenges. It has invested heavily in creating infrastructure and ecosystems for anytime, anywhere learning, skill development, and employability solutions. Industry leaders expect a conducive environment to be built that leverages this ecosystem, and they welcome an incentive mechanism to accelerate the adoption of the National Education Policy (NEP) 2020.
One key demand is a significant change in the current taxation structure. There is a call to reduce the Goods and Services Tax (GST) on online learning courses from the existing 18 percent to a more accessible 5 percent. Additionally, a groundbreaking suggestion proposes setting the GST at zero for economically weaker sections (EWS), promoting affordability and easing financial strain on parents.
Prateek Maheshwari, Co-Chair of the India Edtech Consortium (IEC) and Co-Founder of Physics Wallah (PW), stressed the importance of enhancing youth skills to increase employability and bridge skilling gaps. Maheshwari believes that focusing on collectively enhancing skills at different levels of education is critical for India’s economic growth. To address the financial challenges faced by students, the proposal recommends a substantial reduction in interest rates for educational loans, ranging from 3-5 percent for undergraduate, postgraduate, and professional upskilling courses.
Vaibhav Sisinty, Founder & CEO of GrowthSchool, highlighted the need to cut down interest rates on education loans and make them available to learners pursuing various programs and certification courses, not just those joining universities or top institutions. This will be crucial in encouraging people to acquire new skills and prepare for a technology-driven future.
Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, called for immediate reforms in the Apprenticeship Act to support India’s preparedness for AI-driven jobs. Kumar stressed the importance of scaling reforms and initiatives to match the expected GDP growth and achieve the goal of a $30 trillion economy by 2050.
The calls for increased budget allocations for the education sector and strategic adjustments to policies reflect the recognition that education plays a pivotal role in India’s growth and development. As the country gears up for the budget, decision-makers will need to consider these demands and ensure that investments in education pave the way for innovation, digitalization, and a knowledge-based economy.
