Union Budget 2024: What the Education Sector Expects from Nirmala Sitharaman’s Budget

New Delhi: Union Finance Minister Nirmala Sitharaman is set to release the Union Budget 2024 today, July 23. Educationalists across the country are eagerly awaiting the budget, hoping for significant advancements and support in various areas of the education sector. Educationalists are demanding significant investments in technology-driven learning, enhanced digital infrastructure, and integration of AI in education. They seek increased funding for online higher education, upskilling initiatives, and support for early-stage startups in edtech. There's a call for innovative financial mechanisms to boost higher education and skill development, alongside reconsideration of GST on educational products to ease financial burdens. Emphasis is also on improving access to credit and resources for students, faculty upskilling, and fostering a robust policy framework to bolster the creative economy and intellectual property protection. 

Also Read: Union Budget 2024: From Lower Edu Loan Interest To GST Relief, Educationalists Outline Key Demands

Here are their key expectations:

Education Budget 2024: Emphasis on Digital and Technological Advancements

Ranjita Raman, CEO, Jaro Education: "I am 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 spaces could be a game-changer. Unlocking the potential of new-age technologies like AI, GenAI, AR, and VR can make education not just accessible nationwide but truly engaging for students. This can foster a dynamic environment where industries and academia collaborate to create innovative solutions that address the ever-evolving skillsets required by our workforce."

Mr. Veerasundar V., Chief Financial Officer, Simplilearn: "Our expectations from the budget 2024-2025 are to prioritize enhancing digital infrastructure and integrating AI into education. Developing digital learning centers in underserved areas will significantly bridge the access gap. Additionally, continued government support for initiatives that empower both teachers and students focusing on skill development through advanced technology and innovative approaches is essential. The Government should also reconsider the 18% GST on educational products to ease the burden on middle-class families and provide subsidies and tax breaks for tablets and laptops to make them more affordable."

 Enhancing Higher Education and Skill Development

Dr. Ramakrishnan Raman, Vice Chancellor, SIU: "With the upcoming 2024-25 budget, I anticipate visionary strategies that significantly boost the financing for higher education. This includes enhanced support through innovative financial mechanisms and broader investment avenues to ensure sustainable development and increased accessibility in our education system."

Akshay Munjal, Founder and CEO, Hero Vired: "As we aspire to realize our vision of a $5 trillion economy, it is crucial that education, health, and skill development remain at the forefront of our national agenda in the upcoming budget. Developing a strong tech infrastructure is critical for fueling growth and job creation in high-demand sectors like AI, cybersecurity, and big data. Our policies must equip our workforce with essential digital skills and technologies, enabling India to spearhead global advancements. By embracing research-driven skill development tailored to job creation, we can elevate the effectiveness of our education sector."

 Focus on Inclusivity and Affordability

Dr. Vikram Kumar, MD & Founder, SRV Media: "As the Union Budget 2024 nears, there is optimism that this will bring notable initiatives to boost the education sector and enhance digital marketing efforts. A key challenge that faces many educational institutions, which are mostly under non-profit trusts, is their inability to claim credit for GST on their marketing expenses. Offering tax breaks for investing in EdTech can promote more creativity and cooperation among educational institutes and technology suppliers, thus benefiting teachers and students."

Mr. Raghav Himatsingka, Co-founder, Raising Superstars: "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. Prioritizing initiatives that support digital infrastructure, education technology, and startup incubation will drive innovation and empower the next generation of leaders."

Anthony Fernandes, Founder of Shaalaa.com says, “Fee sponsorship based on merit and the family's economic status is needed in higher education in the formal sector and the skill category. Fee sponsorship based on merit and financial status is crucial for providing equal opportunities in higher education and skill development. This approach ensures that talented students from economically disadvantaged backgrounds can access quality education and training, helping to bridge the gap between different socio-economic groups and promoting social mobility.”

Strengthening Skill Development and Professional Training

Arun Rajamani, Managing Director, Cambridge University Press & Assessment, South Asia: "As the Union Budget 2024 comes into focus, the collective hope is for meaningful progress within the education sector. Drawing on the successes of the Skill India Mission, supplemental investment will be instrumental in further pushing this sector forward. Upskilling and professional development of faculty and school leaders are imperative. This continual professional development empowers teachers to adapt and thrive in the ever-evolving educational landscape."

Dr. Sanjay Gupta, Vice Chancellor, World University of Design: “India's creative economy, despite employing 8% of the workforce, contributes a mere 2.5% to GDP, highlighting vast untapped potential. To fully harness this potential, India needs a robust policy framework focusing on education, infrastructure, and intellectual property. This can propel the creative economy's contribution to GDP significantly by 2030, mirroring the success of creative powerhouses like the UK and South Korea. Unlocking this potential means significant export opportunities, cultural soft power, and becoming a global creative hub.”

"Technology holds great promise to revolutionise the education sector. It plays a significant role in ensuring equity in access to education, making it more affordable, and enabling on-the-go learning. Hence, the Union Budget 2024-25 must earmark allocations towards strengthening digital infrastructure, such as the National Optical Fibre Network and ensuring reliable Internet connectivity. It should also prioritise adopting new-age technologies beyond Artificial Intelligence, such as Augmented Reality and Virtual Reality, which have opened new avenues for immersive and interactive learning experiences. Subsidies and tax breaks on edtech products can also help bridge the digital divide and inequity in access to education. Moreover, incubation and accelerator programmes for emerging startups will go a long way in fostering innovation, catalysing employment generation and boosting economic growth."

 Rohit Manglik, Founder & CEO, EduGorilla said, "As the Union Budget 2024 is set to be released, the education sector holds high hopes for substantial support and reforms. From enhancing digital infrastructure and integrating advanced technologies to improving higher education and skill development, educationalists believe that strategic investments and policies can position India as a global leader in education and innovation.

Prof. Sangita Dutta Gupta, Professor of Economics, BML Munjal University said,“Salaried taxpayers have not embraced the new tax regime fully. The new tax regime may still be good for income below 15 lakh INR. However, there is no inflation adjustment above Rs. 15 Lakh. Thus, taxpayers in the high-income bracket prefer the old regime over the new one. It would be helpful if a tax rate of 30% were imposed on incomes above 25 lakh INR. It will make the new tax regime attractive and at the same time propel consumption and savings.”