Budget 2024 For Education: From Lower Edu Loan Interest To GST Relief, Here Are Key Expectations

New Delhi: As Union Finance Minister Nirmala Sitharaman prepares to release the Union Budget 2024 on July 23, stakeholders across the education sector are voicing their expectations and hopes for increased funding, policy reforms, and strategic initiatives that will propel the sector forward.

GST Exemption and Financial Relief

Prateek Maheshwari, Co-Founder of PW and Chair of the India EdTech Consortium (IEC), emphasizes the need for GST exemptions on educational expenses for students from Below Poverty Line (BPL) and Low Income Group (LIG) families. He argues that the 18% tax slab on education is too high and suggests a 100% GST exemption to make education more affordable. Maheshwari also calls for clearer guidelines on the GST exemption related to student housing, highlighting the ambiguity surrounding the 90-day residency requirement.

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

Reducing Interest Rates on Education Loans

Aritra Ghosal, Founder and Director of OneStep Global, expects the government to support international partnerships and collaborations. He suggests reducing interest rates on education loans and increasing financial aid to ease the financial burden on students pursuing education abroad.

Saurabh Arora, Founder & CEO of University Living, urges the government to lower interest rates on education loans and reduce TCS when remitting money for overseas education. He also calls for student concessions on air travel to make global education economically viable for a broader demographic.

Research Funding and Infrastructure

Vishal Khurma, CEO of Woxsen University, Hyderabad, expects the new budget to 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. He also advocates for uniform taxation norms for home-grown and foreign institutions to ensure a level playing field and for increased support for skill development programs and merit scholarships, especially for female students.

Ramgopal Rao, Vice Chancellor of BITS Pilani Group of Institutions, highlights the need for a significant boost in education and research funding. Despite India's strong position in scientific research, its lower ranking in innovation is concerning. Rao suggests increasing R&D spending, enhancing academia-industry collaborations, and prioritizing education to curb the exodus of Indian students studying abroad. He highlights the importance of increasing R&D spending and enhancing academia-industry collaborations. He calls for prioritizing education and research to curb the exodus of Indian students studying abroad.

Anand Sri Ganesh, CEO of NSRCEL IIMB, suggests the budget should create incentives for innovation ecosystem players, such as science and technology institutions, incubators, and corporates, to collaborate and create multiplier effects for innovators. He proposes a voucher system redeemable by startups with labs and research institutions to foster product development and rapid prototyping.

International Education and Collaborations

Subhakar Alapati, Founder Director of Global Tree Careers, hopes the budget will reduce the Tax Collected at Source (TCS) on foreign transactions related to educational expenses. He argues that this will alleviate financial stress on families and support India's global educational aspirations. Additionally, Alapati calls for more funds to be allocated to higher education and for fostering public-private partnerships to drive innovation and infrastructure development.

Meenakshi Kachroo Chatta, Senior Director & Regional Head at College Board – India, South & Central Asia, stresses the need for increased scholarships and financial aid to make quality education accessible. She also calls for investments in digital infrastructure and international academic collaborations to empower Indian students to become global leaders.

Abhijit Zaveri, Founder & Director of Career Mosaic, anticipates government measures to make international education more accessible and affordable. He suggests targeted scholarship schemes, tax benefits for families, and streamlined visa processes to support students' international education dreams.

Digital Infrastructure and Technology Integration

Mamta Shekhawat, Founder of Gradding.com, emphasizes the need to bridge the digital divide created by the pandemic. She advocates for digital literacy campaigns to combat the infodemic and cyber crimes. Shekhawat also highlights the importance of vocational training, upskilling, and the implementation of 4.0 industry courses to align with the evolving needs of the job market.

Amit Baveja, Managing Director of Burlington English, India & Southeast Asia, advocates for continued support for learning initiatives and enhancing educational infrastructure, particularly in the K–12 sector. He also emphasizes the importance of digital infrastructure and smart assessments for efficient evaluations.

Meenakshi Kachroo Chatta also calls for investments in digital infrastructure to ensure that students from all corners of India can access world-class education and resources.

Teacher Training and Development

Dr. Maithili Tambe, CEO of The Academy School, Pune, calls for investments in teacher training and development programs. She emphasizes the need for capacity-building workshops, mentorship programs, and online courses to empower teachers with the latest skills and knowledge.

Vocational Training and Skill Development

Vishal Khurma highlights the need for increased support for skill development programs, particularly for high school dropouts and diploma students. He suggests providing grants and subsidies to scale up these initiatives.

Mamta Shekhawat underscores the importance of vocational training and upskilling to align with the evolving job market.

Vishal Khurma also emphasizes the need to strengthen industry-academia collaboration to ensure that academic curricula are aligned with market needs, equipping students with the skills required for international competitiveness.

Apprenticeship Credit Framework

AR Ramesh, CEO of TeamLease Degree Apprenticeship, suggests integrating an Apprenticeship Credit Framework to enable seamless transitions for student trainees across different programs and levels of education. He advocates for assigning weightage to educational institutions based on their NAAC accreditation to ensure equity in admissions.

Conclusion

The Union Budget 2024 is expected to significantly impact the education sector, addressing key areas such as digital infrastructure, skill development, research funding, and international collaborations. These measures will enhance the quality and accessibility of education, fostering innovation and inclusivity across the nation.