Pre-Budget Expectations and Education Industry Insights

On July 23, 2024, Finance Minister Nirmala Sitharaman is poised to present the National Union Budget at the Lok Sabha. The Budget presentation of the Modi Government 3.0 will present the government's financial plan, addressing important economic concerns and establishing the nation's fiscal policy framework for the year ahead. This budget is particularly important since it is being released when the world economy is navigating the post-pandemic recovery and because analysts from other countries are keeping a close watch on India's economic development.

Before the presentation of the Union Budget, a buzz around it can be seen. Expectations of the common man from this budget are very high as it will be the first Union Budget after the Election of 2024. For the third consecutive year, NDA holds the central power and this Budget which will be presented on July 23, 2024, holds immense importance in several aspects.

In this article, we will be sharing pre-budget insights, thought processes, and expectations from the Government in the Education Sector of some of the esteemed spokespersons. Here it goes:

Meenakshi Kachroo Chatta; Senior Director & Regional Head, College Board, India, South & Central Asia:

"The upcoming budget presents a unique opportunity to transform the landscape of higher education in India. We anticipate significant investments and initiatives aimed at enhancing accessibility to quality education through increased scholarships and financial aid. This support is crucial for students aspiring to study both within India and abroad. With the growing demand for international education, the budget must address the need for better financial assistance. Beyond this, we hope to see announcements that foster international academic collaborations and invest in technological advancements in education.

Moreover, investments in digital infrastructure will ensure that students from all corners of India can access world-class education and resources. By prioritizing these aspects, the budget can be a catalyst for empowering Indian students to become global leaders. Such measures will not only democratize access to premier educational institutions worldwide but also strengthen India's position in the global academic community."

Mr. Aritra Ghosal, Founder and Director of OneStep Global:

"Given the government's emphasis on developing a skilled workforce for multicultural environments and the increase in funding for higher education reflected in the interim budget, it is expected that the government will support more partnerships like the Australia-India educational collaboration. Such initiatives will open new pathways for knowledge and workforce exchange and streamlining the process for foreign universities to establish campuses in India will also strengthen India's international standing and prioritize global education.

To further accelerate global mobility, I encourage the government to reduce interest rates on education loans and increase financial aid support for aspiring study-abroad students. These measures will ease their financial burden and help cultivate a generation of globally competent and confident individuals."

Mr. Amit Baveja, Managing Director of Burlington English, India & Southeast Asia:

"While the Ministry of Education received a 13% budget increase last year, it is crucial that we build on this progress by further supporting learning initiatives and enhancing educational infrastructure, particularly in the K-12 sector. Additionally, focusing on improving digital infrastructure to strengthen our examination systems by incorporating smart assessments will ensure safe, accessible, and efficient evaluations. I would also like to encourage the government to collaborate with tech-enabled entities, as this offers a pathway to upskill a broader segment of the Indian population through programs, certifications, and employment opportunities. Setting aside funds for continuous technological development and establishing a solid regulatory framework are essential for the sector's growth. I urge the government to allocate more resources towards expanding infrastructure for education and research, thereby fostering an environment conducive to the holistic development of our youth."

Abhijit Zaveri, Founder & Director, Career Mosaic:

"As we approach the upcoming budget announcement, we anticipate that the government will foster more international partnerships and collaboration as seen with the opening of GIFT City creating new opportunities and fostering collaboration between Indian and international universities, creating avenues for cross-cultural learning and research in Ahmedabad Gujarat. A focus on global education in this budget will empower young Indians and strengthen India's standing in STEM fields on the world stage.

In the past year, India reached an all-time high in international student enrollment, we expect the government to recognize and harness this potential by implementing measures to make international education more accessible and affordable. This could involve targeted scholarship schemes for Tier 2 and Tier 3 city students, tax benefits for families supporting overseas education, and streamlined visa processes. A supportive budget addressing these aspects will not only enable students to pursue their international education dreams but also contribute significantly to India's long-term economic and intellectual growth."

Saurabh Arora, Founder & CEO, University Living:

"In anticipation of the upcoming budget, we at University Living urge the government to consider essential measures that can significantly benefit Indian students pursuing education abroad. Firstly, increased fund allocation to the higher education sector will be highly appreciated by the growing student community in India. Secondly, lowering interest rates on education loans and a reduction or waiver in Tax Collected at Source (TCS) when remitting money for overseas education is crucial for alleviating financial burdens on students and their families, thereby enhancing access to education at their chosen destinations. Lastly, implementing student concessions on air travel is imperative to make global education economically viable for a broader demographic of students. This would not only foster cultural exchange but also elevate India's representation on the global academic stage. We hope these comprehensive budgetary considerations will create a more supportive environment for Indian students undertaking international education, fostering academic growth, and enhancing India's presence in the global educational sector."

Mr. Pankaj Dhingra, CA & CPA, Co-Founder & Managing Partner, FinTram Global:

"As the budget approaches, there's hope for reduced GST on international qualifications, easier access to educational loans, and improved employment prospects for certified professionals. These changes would make global education more affordable and accessible, fostering a highly skilled workforce that can compete on an international stage and contribute significantly to India's growth and development."

Anish Srikrishna, CEO, TimesPro:

"The Budget for 2024-25 is anticipated to be reform-oriented and immensely crucial for India to compete and adapt amid significant global political and economic shifts. At TimesPro, we remain hopeful that the Hon. Finance Minister will prioritize the education sector, ushering in comprehensive reforms with a key focus on taxation. The current GST rate of 18% on education, comparable to that on luxury goods and services, should be reduced to 5% and eventually to zero. Additionally, the government should consider lowering education loan interest rates to 3-5% for undergraduate, postgraduate, and professional upskilling courses. This is essential for India's growth, as the focus in the 21st century transitions from 'Skill India' to 'Skilled India'.

India's ambition to become a 'Global Skill Hub' will be validated by the increasing demand for highly skilled professionals that the country produces. This requires a greater emphasis on bridging the industry-academia gap through higher education and unique skill development for our youth and working professionals, which will be crucial in generating employment opportunities within the country.

Moreover, there should be incentives to equip India's millions of gig workers with new-age skills through technology-based learning. The government should introduce a special-purpose vehicle and collaborate with higher ed-tech platforms and public and private institutions to accelerate skilling outcomes. As digitalization gains precedence, the ed-tech sector has demonstrated the potential for innovation and research to provide quality education to a far wider audience. The government should adopt an inclusive approach towards new learning platforms and allocate funds to the edtech sector for continuous technological development in conjunction with public institutions, updating pedagogy and stimulating ed-tech startups to foster growth and diversification within the sector."

Mr. Sripal Jain, CA, CPA, Co-Founder and Global Instructor at Simandhar Education:

"The upcoming Union Budget presents a significant opportunity for the government to enhance competency in technology-driven accounting processes. India's potential as a global hub for skilled accounting professionals is immense. To unlock this potential, the government should focus on providing new avenues for Indian nationals to upskill in universal standards of accounting and encourage global mobility. Easing access to educational loans and reducing GST on international qualifications are crucial steps that can empower our workforce to meet global demands. These measures will not only support the growth of our accounting sector but also reinforce India's position in the global market.

Sachin Jain, Country Manager, ETS India and South Asia

"As we approach the 2024 Union Budget, it is imperative for policymakers to prioritize initiatives that will empower youth and make them employable. In that context, investments to enhance global mobility of our workforce and prioritizing their language skills will be key. India has the potential to harness its human capital which can become a talent pool for the world in the next decade, and here Government must initiate public-private-partnership models to achieve scale in training & assessment of India's young demographic.

Further, in line with the Government's focus on the 'Study in India' programme - there is a need for showcasing academic standing and rigour of Indian higher education institutions (HEIs). There is also a need to make admissions to these HEIs more accessible and streamlined for foreign nationals. Here's we urge the Ministry of Education to broad base acceptance for global admission tests and partner International agencies who can help to bring in international students. Steps such as these will help to make our classrooms more diverse and global, while also augmenting the stature of the Indian higher education institutions."