Budget Reactions from Experts in Education Industry

The recently announced Budget 2024-25 has elicited diverse reactions from experts in the education industry. Stakeholders are evaluating its potential to enhance educational infrastructure, teacher training, and student resources. The budget's focus on digital learning initiatives and vocational training has been widely praised, seen as a significant move towards future-ready education.

However, there are concerns regarding the equitable distribution of funds and the extent to which the proposed measures will address gaps in rural and underfunded schools. As policymakers and educators scrutinize the details, the budget's true impact on the education sector will unfold in the coming months.

Let's discuss the budget reactions from experts in education industry:

Meenakshi Kachroo Chatta, Senior Director & Regional Head, College Board - India, South & Central Asia- "The Union Budget for FY 24-25 presented by Finance Minister Ms. Nirmala Sitharaman highlights a significant focus on youth, employment, and skilling. The substantial allocation towards education and skilling initiatives underscores the government's commitment to empowering our youth and preparing them for the future job market. The introduction of E-vouchers and the revised skill loans scheme are positive steps towards increasing access to higher education, but continued efforts are needed to ensure that these benefits reach underserved and marginalized sections of society.

Standardized testing plays a pivotal role in facilitating student mobility and providing equitable access to higher education opportunities. By offering a consistent measure of academic ability, standardized tests help bridge the gap between different educational systems and provide students with opportunities to pursue higher education both domestically and internationally. We encourage the government to consider integrating internationally accepted, robust assessment frameworks as part of their broader educational initiatives.

Pankaj Dhingra, Managing Partner, FinTram Global - "FinTram Global applauds the Union Budget 2024 for prioritizing education and skilling opportunities, alongside paid internships for Indian students. The revision of the Model Skill Loan Scheme to facilitate loans up to ₹7.5 lakh, backed by a government-promoted fund, is expected to help 25,000 students annually. Additionally, the financial support for education loans up to ₹10 lakh, with e-vouchers providing annual interest subvention of 3% for 1 lakh students, is a transformative measure. This initiative will significantly benefit our country's vast talent pool, ensuring accessibility and affordability of higher education opportunities for all. We are proud to align with these efforts, empowering youth and women through education and skill development."

Saurabh Arora, Founder & CEO, University Living: "The 2024 budget lays a foundation for a skilled, empowered, and future-ready India. University Living congratulates the Finance Minister's 2024 budget and strong commitment to education, employment, and skilling, reflecting a strategic vision for India's future. The comprehensive package of five schemes reiterates government's dedication to empowering the youth.

Allocating Rs 1.48 lakh crore for education, employment, and skilling initiatives are a significant step towards nurturing a skilled workforce within the country and becoming a source for the rest of the world. The key priorities to skill 20 lakh youth over the next five years, upgrading 1,000 ITIs, and aligning course content with industry needs to address the skills gap are all welcome moves. However, India needs at least 1500 HEIs to support the growing student population of 40 million students aspiring for higher education opportunities. The financial support through student loans up to Rs. 10 Lakh for those pursuing higher education in the country is encouraging. Yet, it's important to recognize the gap in opportunities for students aspiring to study abroad. Increasing support for international education would further enhance India's stance in the global educational ecosystem."

Sachin Jain, Country Manager, ETS India, and South Asia: "The Union Budget for FY 24-25 presented by Finance Minister Ms. Nirmala Sitharaman highlights a significant focus on youth, employment, and skilling. The comprehensive package of schemes aimed at facilitating employment and skilling initiatives is a step in the right direction. With a significant allocation of Rs. 2 lakh crores, targeting 4.1 crore youth, the Union government has signaled its policy priority of revamping the skilling landscape in the country.

However, while the announced measures, such as the DBT support and the upgradation of ITIs, are promising, there is still more that could be done to address the challenges faced by our youth in the rapidly evolving job market. We welcome the Centre's decision to launch a new Centrally Sponsored Scheme for providing paid internship opportunities in the top 500 companies, but we believe that it is imperative to complement practical training with critical soft skills, such as English proficiency, which are key markers of employability. We believe that standardized tests play a crucial role in supporting equitable access to higher education by providing a fair and objective measure of student abilities, regardless of their socio-economic backgrounds.

We encourage the government to consider integrating internationally accepted, robust assessment frameworks to complement these initiatives, ensuring that every student has the opportunity to demonstrate their potential and succeed in a competitive academic and employability landscape. We look forward to seeing how these initiatives unfold and contribute to building a robust, future-ready workforce in India."

Mr. Aritra Ghosal, Founder and Director of OneStep Global: "The government's commitment to developing a skilled workforce and increasing funding for higher education is a step in the right direction. Initiatives like the Centrally Sponsored Scheme (CSS) for internships in top-tier companies, the establishment of Industrial Training Institutions, and education loans for students will undoubtedly empower our youth and build a skilled workforce for multicultural environments. As announced, the education loan under Model Skill Loan Scheme is up to 10 lakh rupees for higher education.

However, it is restricted to domestic higher education. We suggest increasing financial support and reducing interest rates on education loans for overseas higher education as well. Such initiative will support study abroad aspirants in easing out their financial burden and cultivating global competency. This would foster global mobility and international collaborations. While the budget makes notable progress in skilling and empowering youth, we encourage the government to make global education more accessible, thereby boosting India's international educational stature."

Abhijit Zaveri, Founder & Director, Career Mosaic: "We welcome the Union Budget 2024-25 and commend the Union Finance Minister for identifying Yuva (Youth) as a key focus area. The emphasis on financial support for students is highlighted by the allocation of INR 1.48 lakh crore for skill development, employability, and education. The FM announced that e-vouchers will be given to 1 lakh students, showcasing the government's intent to revamp the education sector and increase the Gross Enrolment Ratio (GER) in traditionally low-enrollment sectors/regions.

The model skill loans scheme will also be revised to offer loans up to Rs. 7.5 lakh, benefiting 25,000 students annually. Another key highlight is the new internship scheme for 1 crore youth in over 500 top firms in India, providing real-world experience and improving job prospects. We eagerly anticipate further details in the full budget document, particularly regarding collaboration with international universities, which plan to set-up academic campuses in GIFT City and other parts of the country. On the whole, the budget represents a promising step towards empowering the youth of India and help them build a brighter future"

Sripal Jain, CA, CPA, Co-Founder and Global Instructor at Simandhar Education: " "The Union Budget 2024 introduces several important measures aimed at enhancing the employability and skilling of India's youth. The substantial investment in digital infrastructure and educational facilities is commendable and aligns with the need for modernizing our learning environment. While the focus on skilling through ITIs and the introduction of various schemes is a positive development, there is an opportunity to further support the integration of advanced technology in education.

Emphasizing technology-driven processes and investing in digital tools can significantly enhance the quality of education and skill development. One area that could benefit from additional focus is the need for increased support for global mobility initiatives. Enabling professionals to gain international experience and access global markets is crucial for their growth and for fostering India's presence in the global arena. We encourage the government to consider these aspects to ensure a more robust and future-ready education and skilling framework. This will better equip our youth to meet the evolving demands of the global job market."

Mr. Krishan Mishra, CEO, FPSB India: "We at FPSB India commend the Finance Minister for addressing the skill gap through this Union Budget 2024, introducing initiatives to upskill 4.1 crore youth with a ₹2 lakh crore outlay over five years. FPSB India stands aligned with the Centre and committed to upskilling professionals with the financial planning education.

Further, the Prime Minister's package, including Employment Linked Incentives and support for first-time employees, is a significant step towards empowering the youth with opportunities. Incentives to IFSC, such as tax exemptions for retail schemes and reductions in tax rates for foreign companies, further enhance and strengthen the investment ecosystem in the country. FPSB India, is dedicated to IFSCA in providing a steady stream of skilled financial planning professionals for GIFT IFSC and jointly establish GIFT IFSC as a 'Global Finance Hub."

Amit Baveja, Managing Director of Burlington English, India & Southeast Asia: "The Union Budget 2024's initiatives to enhance digital infrastructure, educational facilities, and learning support are timely and commendable. The government's focus on empowering youth through skilling and education is particularly noteworthy. However, I encourage the government to further support learning initiatives, especially in the K-12 sector, by improving digital infrastructure and prioritizing the upskilling of educators. Collaborating with educational organizations and skill-development entities will broaden upskilling opportunities for the Indian population through programs, certifications, and employment.

Allocating funds for continuous technological development and establishing a solid regulatory framework is essential for the sector's growth. While the announced measures, such as the DBT support to eligible employees and the upgradation of ITIs, are promising, more concentrated efforts are required for bolstering the youth employability. For instance, targeted support for English proficiency for learners and other critical soft skills will enhance formal employment. Additionally, a reduction in GST for skilling institutions will further augment the sector. We look forward to seeing how these initiatives unfold and contribute to building a robust, future-ready workforce in India, and we remain committed to supporting these efforts through our expertise and resources."

Mr. Sanjay Dighe, CEO of Krystal Integrated Limited Services: The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman outlines a comprehensive vision for India's growth, with a strong emphasis on job creation, skill development, and social justice. The government's focus on employment generation and upskilling initiatives is particularly encouraging for the facility management and staffing sector.

The introduction of three key schemes under the Prime Minister's package is a significant step towards boosting the job market. The government's commitment to support 210 lakh first-time employees, incentivize job creation in the manufacturing sector, and reimburse employers for additional hires will undoubtedly stimulate employment opportunities. The plans to upgrade 1,000 Industrial Training Institutes and the new centrally sponsored scheme to skill 20 lakh youth over five years are welcome moves. These initiatives, coupled with the focus on women's participation in the workforce through working women hostels and specific skilling programs, will foster a more inclusive and skilled labour force. These progressive measures lay a strong foundation for building a more prosperous and skilled India."

Arun Poddar, CEO, Choice International Ltd: "The Union Budget 2024-25 presents a balanced approach to stimulating economic growth while maintaining fiscal prudence. The government's commitment to reducing the fiscal deficit to 4.9% of GDP in 2024-25, down from 5.8% in the current year, signals a strong focus on macroeconomic stability. This fiscal consolidation path, coupled with the projected 8.2% GDP growth rate, creates a favourable environment for investments and economic expansion.

The budget's tax proposals are designed to boost disposable income and encourage savings. The increase in the standard deduction for salaried employees to ₹75,000 and the rationalization of capital gains tax, with a 12.5% rate on long-term gains for all assets, provide clarity and benefits for individual investors. For businesses, the abolition of angel tax for all classes of investors and the reduction of corporate tax for foreign companies to 35% are significant steps to attract investment. These measures, combined with the ₹11,11,111 crore allocation for infrastructure development, create a robust framework for economic growth and investment opportunities across sectors"

Shweta Sastri, Managing Director, Canadian International School, Bangalore: As India's growth continues to be a shining exception among global economies, the various reforms proposed in the Union Budget will bring about a change in our education system. We are glad to see the budget's focus through financial packages and loans on higher education, youth employment, internships and skilling which marks a significant step towards empowering India's future generation and will help India become a technology hub.

The decision to upgrade 1000 ITIs, along with course content and design to align to the skill needs of varied industries will go a long way in building skilled workforce in trending areas. Additionally, the government's dedication to enhancing women's roles in economic development through multiple reforms is the beginning to a brighter future. However, there could have been some targeted focus on enhancing the attractiveness of India as a global educational hub to attract more international students. There is also a need to upscale the education system to attract more foreign students to the country to promote India as a global study destination. As we move forward, the government should continue to invest to bridge the digital divide and make quality education accessible to all. We look forward to continued government emphasis on education, recognizing its critical role in shaping the future of our nation.

Niru Agarwal, Managing Trustee, Greenwood High International School: As an educationist, it is highly encouraging to see the budget's focus on skill development with substantial investments aimed at revamping our education system. The access to easy financial assistance will help youth and students particularly from underserved areas to train themselves in skills to meet employment requirements of the new economy. These initiatives aim to alleviate financial barriers faced by students seeking advanced education, ensuring broader access to quality educational opportunities.

The budget has also offered a boost in R&D and education leading to uniformity in high-quality education, and training of a competent workforce across the nation. We also believe that the provision for 1 crore youth to gain industry experience through internships with leading companies will bridge the gap between theory and practice. Overall, integrating financial support for education, robust internship opportunities, and a strong focus on skill development, these measures not only empower our youth but also lay a solid foundation for sustainable growth and innovation. Going forward, we also need to create an enabling environment to let the private sector come forward and establish new institutions.

Sarvesh Agrawal, Founder and CEO of Internshala, the career-tech platform: The 2024 Budget has been a landmark announcement for the future of employment and skilling in India, emerging as one of the top nine priorities. The allocation of a substantial budget of ₹1 lakh crore for employment and skilling development is a clear indication to the government's commitment towards building a robust workforce.

A key highlight for me in the Budget 2024 is the announcement of internship opportunities for 1 crore Indian youth with 500 top Indian companies. This initiative, which ensures a ₹5,000 stipend for interns along with an additional one-time help of ₹6,000, and a 12-month experience period, is a significant step forward. Encouraging companies to utilise their CSR funds for the learning and development of interns is a welcome move. It may even be the right nudge to inspire companies to build more holistic internship programs, contributing to the overall employment and skilling development of the nation.