Education Budget 2024 Highlights: Here's what you need to know

Here's how education sector stakeholders reacted to the interim budget 2024 presented by Finance Minister Nirmala Sitharaman in the parliament.

The 2024 Budget outlines significant strides in the government's efforts to enhance the skills of today's youth. The Skill India Mission, a key initiative, has successfully trained 1.4 crore individuals and re-skilled 54 lakh youth, while also establishing 3000 new ITIs. The expansion of higher learning institutions, including 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS, and 390 universities, creates more educational opportunities, especially for students in Tier 2 and 3 cities.

Encouragingly, there has been a 28% increase in female enrollment in STEM courses over the past decade, with girls and women now constituting 43% of the total enrollment, a global high. This rise is not only a positive trend in itself but also translates into increased opportunities for women in the private sector.

The data underscores the need for policies that draw the government's attention to platforms facilitating talent discovery and engagement, even in the most remote corners of the country. This emphasis is crucial for fostering inclusive skill development and ensuring widespread access to educational and career opportunities.

- Ankit Aggarwal, Founder and CEO of Unstop

Investing in our youth is investing in India's future, and this budget rightly emphasizes that. The NEP 2020 is ushering in transformational reforms in schools for rising India. Equipping students with entrepreneurial mindsets to think and be creative will help them become the future of tomorrow. This budget represents a commendable step towards empowered youth with a focus on their entrepreneurial aspirations. Overall, this budget lays a promising foundation for today's youth with importance given to education and skilling. There is a need for collaboration to achieve the scale of these initiatives. Its true impact will hinge on efficient implementation and ensuring equitable access to these opportunities.

- Mekin Maheshwari, CEO and Founder, Udhyam Learning Foundation.

Alison Barrett MBE, Director India, British Council, said, “The Interim Budget 2024 underlines the importance of quality education and access to equal opportunities at all levels to achieve inclusive and holistic development. The NEP has paved the way for strengthening of India’s primary, secondary and tertiary level education, and we are proud to have been a part of India’s journey to internationalise curriculums and bring in global best practices. We are confident that the continued focus on quality, equality and access in education and skilling will accelerate India’s plan of becoming a global knowledge hub, and we remain committed to partnering the government and education sector in India to create opportunities that spark success for young Indians.”

"Setting up of new medical colleges will reinforce India’s objective of talent development in the healthcare space. Providing an impetus to develop research ecosystem in the country, a new corpus of 100,000 cr with 50-year interest free will be established. This will help private sector participation, including educational institutions, to do innovative research with focus on sunrise domain or sectors."

– Sahil Gupta, Partner, Deloitte India

Dr. Maithili Tambe, CEO, The Academy School (TAS), Pune says, “The budget of 2024 has brought about significant changes and reforms in the education sector, aiming to revolutionise the way we approach learning. With The Skill India Mission that has successfully trained 1.4 crore youth, The government has recognised the importance of skill development in fostering economic growth and has consequently increased its financial commitment to this mission. The female enrollment in STEM courses has been nothing short of remarkable, with a staggering 28% increase in participation in the last 10 years. This surge in female representation is a testament to the government's commitment to promoting gender equality and fostering diversity in the STEM workforce.”

Check how to download the Budget PDF here.

Here's what the Education stakeholders said ahead of Budget 2024

“Our govt plans to set up more medical colleges by utilising the existing hospital infrastructure under various departments. A committee for this purpose would be set up to examine the issues and make relevant recommendations,” FM Sitharaman said in her Budget speech.

NEP is ushering in transformational reforms. PM SHRI schools are delivering quality teaching and nurturing holistic and well rounded individuals. Skill India has trained 1.8 crore youths, upskilled and re-skilled 54 lakh youths and established 3,000 new ITIs. A large number of HEIs, namely 7 IITs, 16 IIITs, 7 IIMs, 16 AIIMS, and 390 universities have been set up: FM Nirmala Sitharaman.

Finance Minister Nirmala Sitharaman is presenting the Interim Budget. Watch it here.

Cabinet approves the Interim Budget. Finance Minister Nirmala Sitharaman will present the Budget in the House shortly. (ANI)

“ AI-based technology has been a major driver in recent months and the trend will only accelerate. A call for heavy investments, a progressive policy framework, and increased R&D expenditure is clearly needed for India to catch up with the world in these areas. The government's role is pivotal in fostering an ecosystem that fuels AI innovation, bringing academia, industry, NGOs, and government departments together. As we envision a future powered by AI, India's investment must not only be monetary but also strategic, facilitating collaborative synergies for a thriving ecosystem,” says Prof P J Narayanan, Director, IIIT Hyderabad.

In the upcoming Union Budget for 2024, ed-tech startups can anticipate substantial support for the educational sector. The government's commitment to the National Education Policy (NEP) 2020 signals a clear intent to drive reforms and embrace digital education. With the edtech sector set to reach a USD 4 billion mark by 2025, the budget is likely to introduce measures that encourage innovation, skill enhancement, and quality learning. The surge in edtech during the pandemic underscores its crucial role in shaping India's global education standing. As the government continues its proactive approach witnessed in the past year, ed-tech startups can look forward to a budget that aligns with the evolving needs of the sector, contributing to the nation's educational growth and competitiveness.

- Kavita Sharma, Co-founder and CEO, Ziyyara Edutech.

“With technological advancements happening every minute, relying just on a college education is not enough for the Indian youth. They will have to keep updating and upskilling themselves to utilise their full potential in strengthening our economy. Removal or Reduction of GST rate from upskilling programs in the upcoming Union Budget will help solve this by democratising access to quality education, fostering innovation and employability. Formalising the edtech sector and streamlining operations through regulations and policies instils confidence among stakeholders, fostering an environment conducive to growth. These changes ultimately align with the national goal of developing a more responsive education system, equipping the workforce in this knowledge-driven economy to meet the evolving demands of the job market,” says Mohan Lakhamraju, Founder and CEO of Great Learning. Read more.

“ I look forward to the forthcoming budget with the expectation that it will align with NEP 2020. A substantial increase in budgetary allocation for education, from 2.9% to 6% of the GDP, is crucial for the policy to deliver its full potential and attain national objectives on the path to global leadership,” says Rajendra S Pawar, Chairman and Co-Founder, NIIT Group.

In view of the upcoming interim Union Budget, we would like to appeal to the government to increase the education sector’s budget and reduce the GST slab from 18% to 5% on educational products and services. Our aim is to establish a strong foundation for the country’s children, particularly those from economically disadvantaged backgrounds. Additionally, given the evolving world and our shifting approach to education, driving a change to ensure affordable and quality education at scale needs more collaboration for public and private sectors. For this, reducing the GST on educational services would also remove financial strain on parents, promoting affordability. Apart from this, focusing on collectively enhancing youth skills to increase employability and reduce skilling gaps is imperative for the Indian economy’s growth.

– Prateek Maheshwari, Co-Chair, India Edtech Consortium (IEC), Co-Founder- Physics Wallah (PW).

An Interim Budget mentions the government's financial plans for a short period.

Since general elections will take place later this year, the Finance Minister will not present a full budget. A comprehensive budget for the financial year 2024-25 will be introduced when a new government is formed after the elections.

Finance Minister Nirmala Sitharaman will present the Interim Budget today, February 1, at 11 am.