All eyes are on Budget 2024 due to be tabled on July 23. While every sector has its unique wishlist, calls for GST exemption on all educational expenses has been gaining momentum. Ranging from test preparation courses to job-oriented skill programmes, specifically targeting students from Below Poverty Line (BPL) and Low Income Group (LIG) families, industry stakeholders are keen about making education more accessible and affordable.
Prateek Maheshwari, Co-Founder of Physics Wallah and Chair of the India EdTech Consortium (IEC), emphasised, “The existing 18% tax slab is disproportionately high for something as fundamental as education. Such financial relief would significantly reduce the net disposable income spent by these families on education, making quality education more accessible.”
Partnerships and economic alignment in edu-fintech
Experts suggest that partnerships between fintech companies and educational institutions are essential for driving skill development. The education budget can further invigorate the industry by aligning educational progress with economic demands. “This involves equipping the workforce with crucial digital financial skills, offering tax reliefs and subsidies to lower operational costs and boosting funding for research and development. Moreover, grants for training and professional development are vital for fostering innovation within the edu-fintech sector,” said Rohit Gajbhiye, CEO and Founder of LEO1.
Green skilling and technological advancements
In an era defined by the urgent need for sustainable development, experts believe the government must actively encourage the Public-Private Partnership (PPP) model in green skilling and establish Green Skill Academies across various states. Manav Subodh, Founder of 1M1B (One Million for One Billion), stated, “This strategic initiative aims to equip one crore youth with green skills by 2025, seamlessly integrating these programmes with the Skill India Mission. By doing so, not only will it create a multitude of jobs within the rapidly expanding green economy, but it will also significantly contribute to India’s climate commitments.”
Subodh reiterated the need for the education budget to create a dedicated fund and provide incentives for climate technology and AI startups. Establishing AI hubs and centres of excellence focused on open-source AI is crucial for democratising access and enabling the development of indigenous use cases that address local sustainability challenges in sectors like transportation, agriculture, and energy efficiency.
As the Union Budget approaches, these recommendations underscore the importance of targeted financial relief, strategic partnerships and a focus on sustainable and technological advancements to drive India’s educational and economic future.