Union Budget 2024: Will the centre meet the growing demands of the education sector? Here’s what experts expect in Budget 2024

Finance Minister Nirmala Sitharaman will present the Union Budget 2024 on July 23. While expectations of the economic changes that the latest budget will bring are rising, all eyes will be on how the central government plans to meet the growing demands of the education sector, especially at a time when it has been drawing flak for the recent controversies related to the key entrance exams and the marks accompanying them.

It is obvious that Budget 2024 will be a dress rehearsal for the Modi government.

Meanwhile, expectations are high regarding the likely changes and alternatives that the new budget will bring. Experts from the academic circles expressed their views and opinions to Hindustan Times Digital.

Need for GST exemption

Prateek Maheshwari, co-founder of PW and chairman of India EdTech Consortium (IEC), said that students from Below Poverty Line (BPL) and Low-Income Groups should get 100 per cent GST exemption on all education expenses, be it test preparation or professional skill courses. He stressed that “18 per cent tax bracket is extremely high for a basic necessity like education. The government should come up with a mechanism that enables more students to receive quality education while making it affordable.”

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“While we welcome the GST exemption on student accommodation, it is important to clear up the confusion. It is still a grey area, given that a student has to continuously reside in the accommodation for a period of 90 days. While the intention is to benefit students, the exemption lacks clarity on its implementation in terms of timeline,” Maheshwari said.

Prioritizing teacher training and digital infrastructure

Prajodh Rajan, Co-Founder and Group CEO, Lighthouse Learning (formerly EuroKids International), said a significant increase in education spending is key to unlocking India’s true potential. Highlighting the multi-pronged strategy, Rajan said, “We need to prioritize teacher training and development programs, as well as strengthen digital infrastructure to facilitate seamless learning experiences. Investing in upskilling our educators with the latest pedagogies and technologies is key to ensuring quality education.”

He also stressed the importance of improving early childhood education infrastructure, including more high-quality pre-schools, especially in underserved communities. “Early childhood education is the foundation for lifelong learning, and ensuring access for all is key. A forward-looking budget that prioritizes education will empower our youth, drive economic growth and support social progress. We are optimistic that the government will recognize these imperatives and create an environment where every learner can thrive,” Rajan added.

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Introducing student-friendly educational loans

Shweta Sastri, Managing Director of Canadian International School, Bangalore, highlighted that a significant section of the student community relies on educational loans to pursue their desired course. She said, “Encouraging more students to pursue their desired course with lower interest rates on such loans is essential for their optimal growth and development.”

She stressed that the government should announce measures to further promote the integration of technology in education and build future-ready skills in students,

Besides, improving internet connectivity infrastructure across the country that promotes last mile access was a point raised by Sastri. She said, “As we look to the future, we must strive to ensure that the educational experience remains meaningful and enriching. It is important to nurture, challenge and empower all students to succeed in whatever they choose to do in life.”

Expanding Access to Education and Technology in Underserved Areas

Niru Agarwal, trustee of Greenwood High International School, said the upcoming budget should address the fundamental aspects of education to improve the quality of learning, enhance the professional skills of teachers and build solid infrastructure. “While the new education policies have identified many groundbreaking initiatives, we urge the government to focus on expanding access to education and technology, especially in rural and underserved areas. We need to build the right mix of digital, physical and practical classroom infrastructure that will enhance the effectiveness of learning,” Agarwal said.

She added, “Increasing the participation of women in STEM fields is also crucial, and at the same time, we need to create an enabling environment for the private sector to come forward and set up new institutions. Ease of doing business is more important here than anywhere else. A supportive budget that addresses these aspects will not only enable students to pursue their educational dreams but will also contribute significantly to India’s long-term economic and intellectual growth.”

Equal access to high-quality education

Rustom Kerawalla, Chairman and Founder, VIBGYOR Group said, “In the upcoming Union Budget 2024, we envisage significant investments in the education sector. This includes improving infrastructure for effective education delivery, enhancing teacher training, promoting inclusive education and focusing on outcomes that are aligned with 21st century skills. These priorities are aimed at ensuring equitable access to quality education and building a resilient system that prepares students early for real-world scenarios.”

He added: “Through joint technology-based solutions, infrastructure improvements, comprehensive training, advances in pedagogy and adaptation to modern teaching methods, we can unleash the potential of education reform.”

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Strengthening the digital infrastructure

Rohit Manglik, Founder and CEO, EduGorilla said, “Technology has a huge potential to revolutionize the education sector. It can play a significant role in ensuring equity in access to education, making it more affordable and enabling learning on the go. Hence, the Union Budget 2024-25 must allocate funds to strengthen digital infrastructure like the National Fiber Optic Network and ensure reliable internet connectivity.”

“Priority must also be given to implementing new technologies that go beyond artificial intelligence, such as augmented reality and virtual reality, which open up new possibilities for immersive and interactive learning experiences,” he added.

Investments in talented employees in the country

Aalok Kumar, Corporate Officer & Senior VP – Head of the Global Smart City Business Development Department and President & CEO of NEC Corporation India, highlighted that the Government of India has presented an interim budget that has reinforced its vision of ‘Viksit Bharat’ by 2047 – to accelerate India’s development and foster inclusive economic participation among all citizens. “As we await the full budget, we expect clear and decisive provisions to take this vision forward and technology will be at the heart of this transformation.”

“While technology continues to drive India’s socio-economic progress, the key is to build the country as the knowledge capital of the world through increased efforts in R&D and innovation. This will require sustained and rigorous investment in the country’s talent pool through coordinated training, skilling and upskilling efforts.”

Tax cuts for skills training courses

Dr. P. R. Sodani, President of IIHMR University, pointed out that with the rapid advancement in technology, students need to stay up-to-date to ensure a secure future. “Reducing taxes on skill-building courses will increase opportunities for innovation, inclusiveness, allocation and accessibility. Working closely with the healthcare sector, we call for robust funding models to increase investment in healthcare infrastructure, thereby helping young minds engage in health management studies.”

GST reduction on edtech services

Tarun Saini, CEO and co-founder of Vidyakul, pointed out that edtech companies currently charge 18% GST, which is affecting the affordability of online education. “This is an issue that edtech companies have been talking about since the last budget session. Reducing GST on edtech services will bring down the prices of services and increase affordability. We hope the government will consider reducing GST from the current 18%.”

“In addition to this, we are looking forward to closer collaboration between policymakers, the government and startups in the form of PPPs (public-private partnerships) in the education sector. Bringing together startups with education policymakers can create powerful synergies to solve targeted problems and significantly enhance efforts to address critical issues,” he added.

Increasing the education budget to strengthen the educational framework

Sumit Singhal, subject matter expert at SN Dhawan & CO LLP, said, “The government should focus on increasing the education budget beyond 13% as it would provide continuous support to education initiatives and further strengthen the education framework.”

According to Singhal, such an increase would enable more robust funding for key programmes, infrastructure development and technology integration in schools and higher education institutions.

Singhal also stressed the need to reduce GST rates on digital educational content and services. “Reducing these rates would significantly increase the affordability of online learning, which has become increasingly important in today’s digital era. This measure would be beneficial for students as it would make quality educational resources more accessible and at the same time for edtech companies as it would create a more conducive environment for innovation and growth.”

He stressed that a strategic increase in the education budget combined with targeted tax relief can lead to significant progress in the education sector, which will benefit students and teachers, as well as lead to the transformation of the education sector.