Union Budget 2023: How it affects higher education and EdTech

No one anticipated the urgent need to modernize education when the world reached a standstill in 2020. Participants in the education dynamic are encouraged to upskill and empower themselves by using new and immersive educational services provided by the EdTech business. The finance minister Nirmala Sitharaman presented the Union Budget 2023 on February 1, and as expected, it has a transformational effect on higher education and EdTech. The budget focuses on creating new avenues for growth and improvement in the sector and is set to benefit both students and those in the EdTech space. 

INR 1,12,898.97 crores have been allocated for the education sector. This is a huge step towards making India an education leader and will help the country’s overall development.

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Higher education and EdTech in Union Budget 2023

The budget allocations and proposals for the higher education and EdTech sectors have been an important topic of discussion for many years. The Union Budget 2023 has been hailed as a game-changer for India’s higher education and EdTech sector. 

According to the budget document, for the fiscal year 2023-24, the government has allocated INR 1,12,898.97 crores to the Ministry of Education. The Higher Education Budget is allotted INR 44,094.62 crores for 2023-24, a considerable increase from 40828.35 in revised estimates for 2022-23. While the School Education budget for 2023-24 is INR 68,804.85, it is INR 9.752.07 crore higher than the revised estimate for FY 2022-23.

Overview of Union Budget 2023

Year	2023
Financial year	2023-24
Present by	Nirmala Sitharaman
Presentation date	1st February
Presented on	Parliament

• Higher Education

In addition to the 157 medical colleges constructed since 2014, 157 nursing institutions will be developed. The National Book Trust and the Children’s Book Trust will supply books in local languages and English to physical libraries. One of the IITs will receive research and development funding for developing lab-grown diamonds. The center will hire 38,800 instructors and support personnel for the 740 Eklavya schools that serve 3.5 lakh tribal students. 

Fund allotment for top higher education institutions –

• IITs – INR 8791 crore, an increase of INR 1246 crore
• NITs – INR 4,820.60 crore, an increase of INR 456.6 crore
• IISERs – INR 1,462 crore 
• IISc Bangalore – INR 815.40 crore 
• IIITs – INR 560 crore

• EdTech Sector

The EdTech sector applauded the budget announcements on digital projects with an emphasis on artificial intelligence in the education sector, classifying it as a step towards the “digital revolution”. The announcement of the establishment of a National Digital Library for Children and Adolescents will undoubtedly benefit the ed-tech sector. It will establish a digital ecosystem in the school sector, promote digital education, and primarily aid pupils falling behind due to the epidemic. 

The budget also emphasized the relevance of artificial intelligence in the education sector by announcing the construction of three artificial intelligence centers of excellence to enable ‘Make AI for India’ and ‘Make AI work for India’. Proposal to promote industry partnership in this will help EdTech to play a key role by offering training on AI and allied subjects to  produce future-ready talents in AI.

The launching of Pradhan Mantri Kaushal Vikas Yojana 4.0 is aimed at making lakhs of skilled youth in the next three years for Industry 4.0. With a consistent industry partnership, the flagship program plans to offer programs in coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and other soft skills. To skill youth for international opportunities, 30 Skill India International Centres will be set up across different States.

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Impact of Union Budget 2023 on Higher Education and EdTech

Education experts and policymakers have widely praised the Union Budget 2023 for its focus on supporting higher education and EdTech. This budget aims to promote a more equitable and inclusive education system across India.

According to Ambrish Sinha, CEO of UNext Learning Private Limited, the Union Budget 2023-24 is indeed a holistic and well-balanced one with a special emphasis on Industry 4.0. 

“The government has rightly laid emphasis on new age technologies and skill-building programs. ‘Make AI for India’ and ‘Make AI work for India’ will give a definite boost for niche technologies and its adoption. The announcement of three centers of excellence for artificial intelligence and active industry collaborations strongly indicate that the Government of India wants AI to be a crucial component of the Indian economy,” said Mr Sinha.

The future of education is digitization, and NEP is paving the road for e-education in India. Distributing more funds will promote online and digital education to increase accessibility. Moreover, equal learning opportunities for learners in urban and rural areas will only boost the economy.

The increased funding has been earmarked for a range of initiatives, including establishing new research and teaching institutions, establishing new digital infrastructures, and providing scholarships for economically disadvantaged students. These initiatives are expected to significantly expand access to higher education in India, allowing more people to benefit from the increased opportunities available.

This year, there is a strong emphasis on developing and deploying stronger digital infrastructures to guarantee that all students are given access to a positive impact on online learning experiences. This involves investing in high-speed internet access, especially in rural and remote locations, and assisting schools and educational institutions in upgrading their technology systems.

“The overall budget aims to make India a knowledge and technology-based economy in the next 25 years and we are hopeful that these measures will positively impact the growth of the EdTech sector as well,” opined Ambrish Sinha.

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Conclusion

The Union Budget 2023 promises to bring positive and revolutionary changes to the higher education and EdTech sectors. It has provided for important infrastructure upgrades and technological advancements in education. This could improve the quality of teaching and learning and open up new opportunities for students and entrepreneurs. 

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Key takeaways:

1. As India’s economy continues to grow and evolve, the Union Budget 2023 provides new and exciting opportunities for those pursuing higher education or involved in EdTech.
2. The federal government has proposed various initiatives to increase access to educational opportunities for all students, from providing more financial aid to investing in EdTech programs.
3. The budget has also mentioned additional funding for research and development in the sector, which could result in more innovations and breakthroughs in the years to come.