The Government’s focus on the New Education policy continues to remain in focus in the Union Budget 2024, with a significant transformative approach integrating skill-based education and industry interface into higher education.
Modi 3.0 Government’s 1st Budget 2024 perceived by Industry as a “Budget of Hope”
Overall, the Budget makes an enhanced provision of Rs 1.48 lakh crore towards education, employment and skill development programmes. Proposals for skilling 20 lakh youth over a five-year period is commendable and steps towards upgradation of industrial training institutes are also good steps.
Budget 2024 : Increased Support for High-End Research Was Expected
The Budget proposes an e-voucher scheme extending educational loans of upto Rs10 lakhs in domestic higher educational institutions to be available to 1 lakh students every year with an interest subvention of 3 per cent.
Anticipations and expectations from Higher Education runs high from Budget 2024
The Model Skill Loan Scheme is being revised which will be extended to 25,000 students every year with the interest rate subvention. These will help students from poorer families pay for their tuition fees. While the NEP outlines the framework towards quality education, the education loans will help higher and quality education affordable.
The provision of an industry internship programme in 500 companies is an innovative idea, targeting 10 million youth over a period of five years, with the Government providing Rs 5,000 per month for one year and the companies to bear training, with 10 percent of training cost to be met from their CSR funds. Industry internship programme is a crucial element of placement engagement typically in Business Schools. This innovative idea of funding internships with a public-private partnership (PPP) based model expected to be sustainable, will enhance skill upgradation and job creation. The internship opportunity will provide industry training and hand-on experience to graduates in many higher educational institutions and enhance their employability. Employment linked incentives in the form of a one-time wage Rs 15,000 to first-time employees registered in EPFO across sectors using Direct Benefit Transfer (DBT) mechanisms are welcome steps. On the whole, the focus is on enrolment, skill training and employability. Also recognised the need for a targeted initiatives to increase women's participation in the workforce, through dedicated skilling programs and urban hostel facilities.
Startup India’s expectation from Budget 2024
The focus of digital public infrastructure is given further boost, which has played an immense boost to the financial sector, and has huge potential towards the knowledge economy. Support for early-stage startups is also expected to support the Edtech sector.
There is also a proposal to upgrade 1000 ITIs (Industrial Training Institutes) on the pattern of hub and spoke model, to serve as centers of excellence for vocational education and skill training. The NEP focus on digital learning and research as well as innovation funding are expected to enhance employability of youth and women.
Eminent Economists and Industry Leaders Convene at IIM Kozhikode’s 4th Edition of Pre-Budget Analysis
