Union Budget 2024: Key takeaways for higher education

In her seventh consecutive budget presentation, Union Finance Minister Nirmala Sitharaman unveiled the Union Budget 2024 on July 23. This budget, the first of the third government led by Prime Minister Narendra Modi, introduces several measures aimed at fostering economic growth and prosperity. Notably, the budget includes significant initiatives for higher education in India.

Budget proposals for higher education

Here are the key announcements:

1. Funding for education, employment, and skilling: The budget allocates Rs 1.48 lakh crore for education, employment, and skilling initiatives. This substantial investment underscores the government’s commitment to enhancing educational opportunities and fostering employment through industry-specific skills training.
2. Internship opportunities for youth: To boost youth employment, the budget facilitates internships for 1 crore youth in top companies over the next five years. These internships aim to provide practical work experience and skill development, with a monthly stipend of Rs 5,000 to support the interns during their training period.
3. Education loans for higher education: A significant policy introduced in the budget is the provision of education loans up to Rs 10 lakh for students pursuing higher education in domestic institutions. This initiative aims to make higher education more accessible and affordable for students across the country.

Also read: Saptarishi – Union budget, FY 2023-24

• Revised skill loan scheme: The model skill loan scheme has been revised to facilitate loans up to Rs 7.5 lakh, backed by a guarantee from a government-promoted fund. This scheme is expected to benefit 25,000 students annually.
• Allocation for women and girls’ schemes: The Union Budget 2024-25 allocates over Rs 3 lakh crore for schemes benefiting women and girls. Finance Minister Sitharaman highlighted the government’s commitment to promoting women-led development, including the establishment of hostels for working women to support their participation in the workforce.
• New medical colleges and working women hostels: The budget proposes the establishment of new medical colleges in Bihar to enhance healthcare infrastructure and educational opportunities. Additionally, the government plans to set up hostels for working women to further encourage their workforce participation.

These initiatives reflect the government’s dedication to improving higher education and supporting the economic development of the country through targeted investments and policies.

Read more: What political students should know about interim budget 2024?

How will this budget help edtech ecosystem in India?

The Union Budget 2024 introduces several measures that could significantly benefit the edtech ecosystem in India:

1. Enhanced digital infrastructure: The budget emphasizes improving digital infrastructure, which is crucial for the edtech sector. This includes better internet connectivity, especially in rural areas, ensuring that more students have access to online education platforms. During the budget speech Finance Minister said “For improving data governance, collection, processing and management of data and statistics, different sectoral data bases, including those established under Digital India mission, will be utilised with active use of technology tools.”
2. Integration of AI and advanced technologies: Aligning with the National Education Policy (NEP) 2020, the budget supports the integration of artificial intelligence (AI) and other advanced technologies in education. This will help edtech companies develop innovative learning solutions and enhance the overall quality of education.

Here are the budget 2023 allocations to higher education

3. Tax relief and incentives: The budget abolished angel tax on all asset classes that will boost startup ecosystem in the country. It will help edtech companies reduce operational costs and encourage more startups to enter the market. This financial support is expected to foster growth and innovation within the sector.
4. Support for research and development: Increased funding for research and development in the education sector will enable edtech companies to create more effective and engaging educational tools and resources.
5. Focus on skill development: The budget allocates significant funds for skill development programs, which can be leveraged by edtech platforms to offer courses and certifications in various fields. This will help bridge the skill gap and make the workforce more competitive.

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The initiative to upgrade 1,000 industry training institutes in a Hub and Spoke arrangement is a strategic move to address the skill gap and equip the youth with the necessary skills for future job markets. This model ensures that resources and expertise are efficiently distributed, making high-quality training accessible to more students.

Also read: Nine priorities of Union Budget 2024

Moreover, the focus on women-led development and AI-driven upskilling for women is a significant step towards promoting gender equality and inclusive growth. By providing targeted support and opportunities for women, the government is fostering an environment where women can thrive and contribute meaningfully to the economy.

In conclusion, the Union Budget 2024 is indeed aspirational and holds the potential to drive holistic development in the education sector. With India’s ambition to become a global knowledge capital, a visionary approach and strong emphasis on higher education are crucial. This budget could serve as a guiding framework to achieve that objective, fostering an environment of inclusive growth, skill development, and technological advancement.