By Akshay Munjal
The central government has consistently championed digital initiatives, skill development, and startup growth. As we look forward to the upcoming Union Budget for FY2024, expectations run high for substantial support for the edtech ecosystem. Amidst startup challenges, the need for fiscal incentives and a comprehensive policy framework to ease the business landscape, especially during a funding downturn, remains crucial.
Expectations for Budget 2024 center around a sustained commitment to fostering startups, particularly in the edtech sector. Strengthening policy frameworks is essential to streamline the business setup process, fostering a resilient and thriving startup ecosystem.
Taxation and Incentive Measures
To encourage further investments in research and development (R&D), pivotal for transforming the education sector, the current 18% GST on education services needs reconsideration. The current GST Act exempts core educational services provided and received by educational institutions, imposing a standard rate of 18% on other services, applicable to both public and private education institutes. The anticipation is for a thoughtful reduction in GST for all entities within the education sector, aiming to alleviate the financial burden.
Re-evaluating the GST on education services is crucial to stimulate innovation and progress in the education sector. A deliberate reduction in GST rates would not only encourage increased investment in research and development but also contribute significantly to the overall advancement of our educational landscape.
Recognition of skill-based program
Skill development must remain a central focus in this Budget to cultivate a workforce prepared for the jobs of the future. Strengthening the skilling domain will motivate individuals to upskill, acquiring the expertise needed to enhance businesses and adapt to a dynamic and evolving job ecosystem.
The government must also enable the recognition of online degrees offered by edtech firms with the intent to boost the credibility and operations of all players, including smaller regional and national edtech players offering online courses and certifications.
Strengthening the skilling domain will drive individual upskilling and empower businesses to navigate a dynamic job ecosystem effectively.
Uniform support for the education sector
The expectation is for the government to provide priority-sector lending to encompass the education sector, irrespective of its mode of delivery. This will foster inclusive growth by ensuring equitable financial support for both traditional and modern forms of education. The measure will be seen as a step towards addressing the diverse financial needs within the education sector and promoting its sustainable development.
Enacting these measures not only democratizes educational access but also propels the nation towards enduring social and economic progress, laying a resilient foundation for the prosperity of future generations.
Easy access to funds
Government aid and funding are indispensable lifelines for a burgeoning skilling industry, amplifying accessibility and innovation. Amidst challenges, financial support fuels technological strides, fostering a dynamic learning environment. These investments can surely propel the nation towards an empowered, digitally adept educational landscape.
As these investments take root, they plant the seeds for a future where our nation stands at the forefront of digital empowerment, cultivating a generation ready to meet the demands of an ever-evolving global landscape.
Conclusion: A Potential Rejuvenation
Budget 2024 holds the potential to rejuvenate the edtech sector. Revamped policies and initiatives can accelerate innovation, accessibility, and inclusivity in the education landscape across India. Viewing the entire education industry, including online learning, holistically, and subjecting it to a rationalized, uniform, lower rate of taxation can make the vision of accessible and available education in India a reality.
The positive impact of these changes is not only felt by startups but by learners across the nation, fostering a brighter and more inclusive educational future. Establishing regulatory frameworks that balance innovation with quality assurance can create a conducive environment for edtech growth. Striking this delicate balance will not only encourage responsible practices within the sector but also build trust among stakeholders, further enhancing the positive impact of Budget 2024 on the overall education ecosystem.
Akshay Munjal is the Founder and CEO of Hero Vired. Views expressed are the author’s own.