December 1, 2024
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News Update Uncategorized

Union Budget 2024-25: Reactions From Education Sector

Let us read what the experts in the education sector have to say on the union interim budget 2024-25 that has been presented today by Finance Minister Nirmala Sitharaman

The union interim budget 2024-25 has obtained diverse reactions from experts in the education industry. The stakeholders are analysing its potential to enhance educational infrastructure, teacher training and student resources. The budget’s focus on digital learning initiatives and vocational training is being appreciated and is believed to be a significant step towards future-ready education.

Let us read the opinions of education industry experts in their own words below:

 

Prof Nishith Gupta, Head & Professor, Department of Biological Sciences, BITS Pilani

“This budget for healthcare, agriculture, biotechnology and lifescience reflects the government’s vision and intent to promote the R&D, prioritise education and provide employment-specific skills and training. A primer minister package (Rs 2 lakh crore) comprising five programmes for boosting education, employment and skills is unveiled. The government aims to transform agricultural research and perform a thorough review to increase productivity and develop climate-resilient varieties. There is also a strong emphasis on private sector-driven research and innovation overseen by domain experts from the public and private sectors. Our gross expenditure on R&D still stands at >0.70 per cent of GDP. We hope that the government will continue to increase the annual R&D budget to meet the global average (ca. 1.8 per cent). This budget offers a timely boost in R&D and education to fuel inventions and innovation at public and private academic institutions and lead to uniformity in cutting-edge research, high-quality education, and training of a competent workforce across the nation.”

 

Raghav Gupta, Managing Director, APAC and India, Coursera

“The Union Budget 2024-2025 showcases a crucial commitment to boosting education, employment, and skill-building capacity, perfectly aligning with the Government’s vision of Viksit Bharat by 2047. The budget’s special focus on skilling 20 lakh youth over the next five years through centrally sponsored schemes, the upgradation of 1,000 training institutes, and the provision of skilling loans are steps in the right direction.

I am particularly excited about the provision for 1 crore youth to gain industry experience through internships with 500 top companies – this will bridge the gap between theory and practice. The cross-sector collaboration can address the rapidly growing skills gap and social inequities, ensuring students transition smoothly into high-demand job roles. Businesses will also benefit from a diverse and skilled talent pool, reducing recruitment time and costs.

In today’s digital era, where talent can emerge from anywhere, access to digital skills will be a game changer. We’re excited to support these initiatives and provide millions of Indians a gateway to more equal opportunities, all while unlocking our demographic dividend and accelerating our journey towards a $5 trillion economy.”

 

Dr Sanjay Gupta, Vice Chancellor, World University of Design

“I applaud the government’s initiatives in Union Budget 2024 to empower youth through education and skill development. Financial aid up to Rs 10 lakh for higher education and e-vouchers for interest relief enhance access to quality education. The Prime Minister’s internship programme, training one crore students over five years with a stipend, promotes lifelong learning and employability. Establishing E-Commerce Export Hubs will empower MSMEs and traditional artisans to showcase their work globally. These initiatives align with our mission to nurture creative talent in design and we look forward to helping our students achieve their aspirations and contribute to India’s dynamic design sector.”

 

Professor Manish Gangwar, Indian School of Business, Executive Director-ISB Institute of Data Science

“The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, stands out for its strong emphasis on job creation. Through a series of innovative schemes and forward-thinking policies, this budget aims to generate substantial employment opportunities and address the existing skill gap in the workforce.

A key highlight is the introduction of three ‘Employment Linked Incentive Schemes’ designed to provide direct financial support to both employees and employers. These schemes include support for first-time employees, incentives for manufacturing sector jobs and financial reimbursement for employers hiring additional staff.

Recognizing the critical role of skill development and practical training in enhancing employability and productivity, the budget emphasises the upgradation of ITIs and internships in top companies. Over the next five years, 1,000 Industrial Training Institutes (ITIs) will be upgraded, focusing on improving outcomes and quality. Additionally, 1 crore youth will gain valuable on-the-job experience through internships in top companies. The budget also plans to develop investment-ready ‘plug and play’ industrial parks in or near 100 cities to stimulate job creation and a conducive environment for businesses to set up operations and generate jobs.

The union budget 2024 is a forward-looking plan. By introducing targeted employment schemes, enhancing skill development programs, and developing industrial parks, the government aims to not only provide immediate employment opportunities but also focus on a skilled and resilient workforce for the future to drive India’s long-term economic growth.”

 

Usha Iyer, Principal and Managing Director, The Green School Bangalore, Benguluru

“It is indeed commendable to see such a significant budget allocation today towards education, employment and skilling in the Union Budget 2024 presented by Finance Minister Nirmala Sitharaman.

There has been an impressive Rs 1.48 lakh crore earmarked specifically for education as compared to the previous year’s allocation for the education sector in 2023 which stood at Rs 1,12,898.97 crore.

The budget places a pronounced emphasis on fostering education, employment, and skilling across the nation. For the last nine years we haven’t seen large impact on youth through the skill India movement, now we have to see how it brings a change with these policies.”

 

Nipun Goenka, Managing Director, GD Goenka Group
“We welcome the Rs 1.48 lakh crore allocation for education, employment and skilling in the 2024-25 budget. The initiative to skill 20 lakh youth, upgrade 1,000 training institutes and introduce industry-aligned courses will enhance employability and innovation. The provision of Rs 10 lakh education loans with interest subvention and the revised Model Skill Loan Scheme are commendable steps towards making higher education more accessible. Additionally, the internship opportunities for one crore youth in top companies will provide valuable experience and financial support. These measures will create a robust and inclusive educational ecosystem, fostering growth and development.”

Dr Jaskiran Arora, Dean – Education Quality, BML Munjal University

“The budget marks a pivotal moment for India’s education sector, reflecting a robust commitment to enhancing opportunities for the youth. The allocation of Rs. 1.48 lakh crore for education, employment and skilling underscores a strategic shift towards holistic development. The introduction of financial support for loans up to Rs 10 lakhs for higher education, particularly for those excluded from existing government schemes, is a game-changer. The e-vouchers offering a 3 per cent annual interest subvention for one lakh students will make higher education more accessible and affordable, potentially transforming countless futures.

The proposal to open working women hostels in collaboration with industry underscores a strong commitment to supporting female workforce participation and creating a more inclusive environment for women.”

 

Nidhi Bhasin, CEO, Nasscom Foundation

“The FY 2024 budget underscores a commitment to fostering inclusive growth by focusing on women, youth, farmers and the marginalised groups aligning tremendously with our mission at Nasscom Foundation. It is elating to see employment, skilling and education being the core of the Budget speech. The comprehensive approach towards empowering these groups, not only addresses immediate challenges but also lays the foundation for an inclusive economy. Additionally, start-ups have the potential to be the backbone of innovation in India and the abolition of the angel tax is a landmark decision for the start-up ecosystem that will encourage investment and spur social innovation. In essence, we are positive that the Budget will create new opportunities for the youth as well as women, contribute to the economic growth trajectory of India and help the government realize the vision of Viksit Bharat 2047.”

 

Kunal Vasudeva, Co Founder & Managing Director, Indian School of Hospitality

“The government’s allocation of Rs 1.48 lakh crore for education, employment and skilling, including training 20 lakh youth and upgrading 1000 institutes, is a significant step forward. For those pursuing vocational routes, this is a major win. It will help people develop practical skills and excel in their fields, bringing more youth into the formal economy. Additionally, with manufacturing bases in or near districts, there’s less need to migrate to cities, reducing mobility. Such initiatives are crucial for hyper-local job creation and boosting the manufacturing sector, driving India towards becoming a $10 trillion economy in the next 7-10 years.

The Union Budget’s provision for Rs 10 lakh education loans with interest relief for higher education in India is a big win for those pursuing the academic route. Given our low gross enrollment ratio, these loans will make quality education more accessible, allowing students to choose institutions of merit. This embodies ‘Sabka Saath, Sabka Vikas,’ fostering inclusivity from the ground up. By enhancing local education opportunities and increasing our GER from 26 per cent to at least 40 per cent in the next 5 years, we can cultivate a skilled, competent and agile-thinking workforce. This workforce is essential for job creation, manufacturing growth and meeting the workforce needs across various sectors, supporting ‘Made in India for India and Made in India for the world’ and propelling us towards becoming a $10 trillion economy in the next 7-10 years.”

 

Shishir Jaipuria, Chairman, Seth Anandram Jaipuria Group of Educational Institutions

“The Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman emphasizes on skill development and employment generation – two very important areas for realising the country’s demographic dividend. The three schemes for the employment-linked incentives shall facilitate smooth entry of graduates and post-graduates into industry through the one-month wage allowance and EPFO contribution. The decision to upgrade 1000 industrial institutes and aligning the course content with the industry needs will address the skills gap. Many of India’s youth who have the potential but can’t afford quality higher education will benefit immensely from the provisions for availing loans upto Rs 10 lakh through e-vouchers. This initiative will also improve the gross enrolment ratio in higher education from its present 28.4 per cent to the 50 per cent target for 2035 proposed in the National Education Policy 2020. To provide learners an industry exposure, the initiative to give internship to 1 crore youth in the next five years is indeed commendable. With an outlay of 1.48 lakh crore collectively for education, skilling and employment, the Union Budget is aimed at empowering the youth to play an active role in nation-building for Viksit Bharat.”

 

Dr Latha Krishnan, Dean – MBA, School of Management, IILM University, Gurugram

“In the 2024-25 interim budget, the Education Ministry’s overall budget allocation this year increased by 6.8 per cent from Rs 1,20,627.87 crore as opposed by Rs 1,12,899.47 crore in 2023-24.

The PM POSHAN scheme saw an increase of over Rs 800 crore in allocation from Rs 11,600 in 2023-24 to Rs 12,467.39 crore in 2024-25.

Finance Minister Nirmala Sitharaman has announced that the Centre will provide Rs 1.48 lakh crore for education and employment and skill. Financial support for loans up to Rs 10 lakh will be given to students aiming for higher education in domestic institutions. New centrally sponsored scheme for skilling in collaboration with state governments and industries. About 20 lakh youth will be skilled over 5-year period.

The FM further announced that the government will provide internships to one crore youth. These interns will get Rs 5000 as stipend and one time assistance of Rs 6000. The companies will bear the cost from their CSR funds. There has been an increase in higher educational institutes and women in STEM courses in the last 10 years, which she said were the effects of the National Education Policy (NEP) 2020.

The funding for UGC was brought down by 60.99 per cent, it was brought down to Rs 2,500 crore from the previous year’s revised estimate of Rs 6,409 crore. However, the grants for central universities increased from   Rs 4,000 crore to Rs 15,928 crore for the financial year 2024-25.”

 

Ujjwal Singh, Founding CEO, Infinity Learn by Sri Chaitanya

“The Union Budget’s emphasis on education and upskilling is a commendable initiative. The allocation of Rs 1.48 lakh crore for education, employment, and skilling marks a significant step towards India’s economic growth, particularly as we advance towards digital literacy. As Finance Minister Nirmala Sitharaman stated during today’s budget announcement, this focus on education aims to enhance the accessibility and affordability of quality education. Furthermore, the budget’s emphasis on employment generation will fuel the aspirations of countless teachers, who are the backbone of our education sector. This investment will empower educators with greater opportunities to ensure ‘Baccha Seekha Ki Nahi’.

The establishment of new medical colleges in Bihar is especially encouraging for us, as we have been deeply committed to empowering learning outcomes in Bihar through our Patna Test Prep Centres. This is evident from our learners’ exceptional performance in recent competitive exams for engineering and medical fields. This motivates us to redouble our efforts to nurture outstanding doctors and improve the healthcare infrastructure in Bihar.”

 

Monica Malhotra Kandhari, Managing Director, AASOKA

“I am delighted with the Union Budget 2024-25, which allocates Rs 1.48 lakh crore towards education, employment, and skilling. This budget’s focus on skilling 20 lakh youth over five years through upgraded training institutes is a commendable step toward developing a capable workforce. The introduction of Rs 10 lakh education loans for domestic institutions, with e-vouchers providing 3 per cent interest subvention to one lakh students annually, will make higher education more accessible and affordable. The revised Model Skill Loan Scheme, benefiting 25,000 students yearly, further emphasises the government’s dedication to skill development. Additionally, the initiative to offer internship opportunities to one crore youth in top companies, with financial support, will significantly enhance their employability.”

Professor Bhagwan Chowdhry, Indian School of Business (ISB)

“The Union Budget did not offer big surprises, but a positive way of looking at it is that a few good initiatives that we expected came through.  The removal of Angel Tax was an anticipated but welcome move for startups. A focus on job growth by providing incentives to the private sector, for example, paying the first month’s salary, was also welcome. The focus on skilling is also essential for India. So the language of the Union Budget is consistent with that, but this ultimately matters if it is executed well. Here the details of how this will be achieved will evolve over time. This is not a simple nut to crack, but is absolutely essential.

Similarly, providing MSMEs simpler access to credit is essential. The intention is there in the budget, but the implementation will matter ultimately.

As a school – ISB would be delighted to partner with the government in facilitating startup growth, designing solutions for MSME growth, and designing programs for skilling the youth.”

Dr P Venkat Rangan, Vice Chancellor, Amrita Vishwa Vidyapeetham

“The Union Budget announced by the FM has its heart in the right place. The allocation of Rs. 1.48 lakh crore to focus on education, employment, and skilling, augurs well for nation building in the long term. The increase in funding for central universities reflects a commendable commitment to strengthening the educational infrastructure. The financial support with loans up to Rs 10 lakhs for higher education is a significant step towards making education accessible to all. The skilling program to train 20 lakh young people over the next five years in partnership with state governments and industries is a welcome step too. The new internships, offering stipends and assistance funded through CSR, are also commendable and will provide the student’s valuable hands-on experience. We look forward to aligning with the nation’s imperatives and working collaboratively with the government towards our common goals.”

Akshay Munjal, Founder & CEO, Hero Vired

“I applaud the Government’s strong emphasis on education, skilling, and employment in the Union Budget 2024. Amid growing concerns about the impact of AI on job creation, the substantial allocation of Rs. 1.48 lakh crore for these sectors demonstrates a significant commitment to developing India’s human capital. The introduction of various schemes to promote skilling and job creation is poised to significantly boost economic growth. Additionally, the comprehensive scheme providing internship opportunities in 500 top companies to 1 crore youth over five years, funded partly through CSR, is a welcome initiative. This will give the youth valuable exposure to real-life business environments and diverse professions, further enhancing their employment prospects while ensuring a future-ready workforce.”

Pankaj Jathar, Chief Executive Officer, NIIT 
“The budget announcement has laid a strong foundation for advancing education, skilling, and employment opportunities and is truly commendable. The allocation of Rs 2 lakh crore for the five employment and skilling schemes, along with Rs 1.48 lakh crore for education, employment, and skilling, underscores the government’s dedication to the country’s youth and its commitment to propel growth. The new centrally sponsored scheme aimed at skilling 20 lakh youth over five years will significantly contribute to fostering a skilled workforce. This significant step is the need of the hour to bridge the gap between education and the skills essential to equip the youth to be industry-ready. These initiatives will help us maximize our education and skilling efforts, propelling the next phase of growth for the Indian economy.”

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