This Budget comes at a time after an Economic Survey which shows the Indian Economy has grown at a rate of 8.2% in 2023 -24 and projects a GDP growth of 6.5% -7% for the upcoming Fiscal Year (FY 25).
Anticipations and expectations from Higher Education runs high from Budget 2024
The Budget by Hon. Finance Minister demonstrates the government’s dedication to skill development, job creation, and improving educational infrastructure but not much specifically for higher education was mentioned as was widely anticipated and expected. 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 not clear at this point about the allocation for each segment.
Startup India’s expectation from Budget 2024
Central universities saw an increase of over Rs 4,000 crore with Rs 15,928 crore allocated for the financial year 2024-25 but funding for UGC seems to have been brought down to Rs 2,500 crore from the previous year’s revised estimate of Rs 6,409 crore.
However, according to Prof. M. Jagadesh Kumar, Chairman, UGC, Looking holistically, compared to the previous fiscal year, the UGC budget has been augmented from Rs 17473 crores to Rs 19024 crores, which represents a significant increase of 9 %. He explains – “The budget for UGC comprises three pivotal components – UGC, Central Universities, and Deemed Universities. Starting from the financial year 2024-25, funding for specific colleges affiliated with Central Universities is realigned from the UGC Budget line to the Central Universities Budget line. This realignment comes with enhanced funding under the Central Universities Budget line, which will increase from Rs 11612 crores in the previous budget to Rs 15928 crores and reduction under the UGC Budget line ( -2860 Crs). Furthermore, the budget for Deemed Universities promoted by the Central Government sees a noteworthy increase from Rs. 500 Crores to Rs. 596 Crores.”
Some Figures to Highlight Upon:
- In the 2024-25 interim budget, the Education Ministry’s overall budget allocation this year increased by 6.8% from Rs. 1,20,627.87 crore as opposed to Rs. 1,12,899.47 crore in 2023-24.
- An amount of Rs 1.48 Lakh Crore for Education, Employment and Skilling, aiming to improve Educational Infrastructure , create job opportunities and enhance skill development programs across the nation.
- 1000 ITIs will be upgraded using the ‘hub-and -spoke’ Model
- Scheme to launch Internship opportunities to 1 crore youth
Let’s hear from the B School Leaders whose voice matters a lot :
Dr. Debashis Chatterjee, Director, IIM Kozhikode : The Union Budget 2024 has laid out an ambitious roadmap for achieving the Vision 2047 of a developed India. The announcement of a National Research Fund is a welcome step to boost innovation and research, with a special focus on private sector-driven R&D. The forward-looking vision of creating Growth Hubs for 14 cities, fostering industry collaborations through the internship scheme, and introducing a new centrally sponsored scheme on skilling will significantly empower the youth and lay a strong foundation for a resurgent India. The increased spending on the education sector was much needed, and the current budget has responded positively. The higher education sector will now be more inclusive with the introduction of e-voucher loans at low interest rates, marking a significant step forward in making higher education more affordable.
Dr. Atish Chattopadhyay, Director at Jagdish Sheth School of Management (JAGSoM) and Vice Chancellor Vijaybhoomi University : “The Union Budget 2024-25 demonstrates a strong commitment to education, skill development, and entrepreneurship, which are crucial for India’s economic growth and global competitiveness. The allocation of ₹1.48 lakh crore for education, employment, and skilling is a significant step towards building a knowledge-based economy. The revision of the Model Skill Loan Scheme and the introduction of e-vouchers for higher education loans are welcome moves. These initiatives have the potential to significantly increase access to quality education and address the growing demand for skilled professionals in India’s expanding digital economy. The ambitious internship program targeting 1 crore youth over five years is visionary. This initiative can bridge the crucial gap between academia and industry, enhancing graduate employability. As per the World Economic Forum, 50% of all employees will need reskilling by 2025 due to the adoption of technology. This internship program could play a vital role in preparing our workforce for future job markets. The Anusandhan National Research Fund, with a financing pool of ₹1 lakh crore, is a crucial step towards boosting India’s research capabilities. This is particularly important as India aims to increase its R&D expenditure from the current 0.7% to 2% of GDP. The focus on MSMEs through the credit guarantee scheme is commendable. MSMEs contribute about 30% to India’s GDP and employ over 111 million people. Strengthening this sector will have far-reaching economic impacts. As educators, we are encouraged by these initiatives. They align with the need for industry relevant education, practical experience, and innovation. These measures lay a strong foundation for India to harness its demographic dividend and emerge as a global knowledge powerhouse.
Dr. Neha Sharma, Director, Shanti Business School: In the first Budget of Modi 3.0, there was a significant expectation on elevating Higher Education by strategic allocation of budgetary funds towards Skill Enhancement, Research Endeavors, and Infrastructure and Digital Ecosystem Development. I was looking forward to the Budget 2024 with expectations that it will align with the blueprint rolled out through NEP 2020, by way of substantial increase in budgetary allocation from 2.9% to at least 6 % of total allocation. This in my view, is crucial to attain the national objective of Global Leadership.
The finance Minister’s emphasis on education through multiple skill development schemes and programs is a commendable initiative, and in line with the NEP 2020 objectives of skilling the youth of India. Rs. 1.48 Lakh Crore has been allocated for Education, with a vision to skill 1 Crore youth to be skilled by top corporates of the country in five years. Aligned to this is upgradation of 1000 it is, 12 month Prime Ministers Internship, E-vouchers upto 10 Lacs to 1 lakh students for Higher Education in domestic institutions at 3% interest charges.
Despite all this the Budget falls short of allocation of incentive and funds for research facility enhancement, infrastructure development and inter institutional collaborations for private institutions. More clarity was expected on finer points of NEP 2020 proposals like Digital infra enhancement for hybrid learning models,Global Collaboration, Professors of Practice, and Reskilling Initiatives.
Dr. B. Ravi Kumar Jain, Director – Sparsh Global Business School : The Budget was an extension of the interim budget brought in Feb. Rs 1.4 lacs Cr allocation for Education, Employment and Skilling. Education Loan Up to 10 Lac to cover 1 lacs students every year is a very encouraging step. Internship scheme (with stipend of 5K PM) shall provide opportunity for over 1 Cr youth every year to across top 500 companies. Focus on Research and innovation on technology for making education accessible, affordable and inclusive. Expected announcement on institution /colleges of excellence in 50+ districts.
Didn’t find in the announcement on reorganization of UGC and structure of statutory bodies. Didn’t hear about digital university initiatives, localisation of curriculum etc. Need to look at finer prints for the major head of allocation within the Education and Skilling budget. Overall the budget is maintaining cautious continuity and some areas and Aggressive stance.
Rev. Dr. C. Joe Arun, SJ Director, LIBA : As per the National Education Policy 2023, the Government’s focus on digital learning, is a huge step forward and in view of the same, increased fund allocation for the Education Ministry will help improve digital infrastructure, skill-based learning, and global education partnerships, particularly in Tier-2 and Tier-3 cities. It is essential to upskill and reskill the workforce and it would be right to cut the GST on professional training, vocational programmes, and e-learning platforms. Notably, under the current GST rules, educational institutions offering online educational services are taxed at 18% GST, which impacts affordability in online education, especially for the learners in Tier-2, Tier-3 cities and rural India. A reduction in GST on online education will lower service prices and boost affordability. The learners across India are hopeful that the government will consider waiving the GST or at least lowering the GST from the current 18%, for online educational services.
In the current global scenario, prioritizing research in education is fundamental to shaping our nation’s future. Allocating 8% of GDP to education will reflect a strong commitment to cultivating a knowledgeable society capable of driving innovation and progress. By extending research grants to private institutes alongside government colleges, will stimulate innovation across diverse fields such as management education, architecture, ensuring that all educational institutions contribute to our research ecosystem. This is of paramount importance to compete in the global markets and to maintain competitiveness, India’s higher education needs a substantial revamp and a higher allocation of at least 8 percent of GDP to compete with economic ‘powerhouses’ such as China and the United States (US). Equipping our universities and colleges is crucial for achieving this goal specifically through industry-academia collaborations. Importantly, to drive innovation, research funding should strategically target emerging fields across disciplines and align with policies of the government like Make in India or Digital India.
YLK Lakshman Kumar, Director, VVISM Hyderabad : The budget’s comprehensive approach addresses multiple facets of the economy, from taxation and employment to infrastructure and social welfare. These measures, if effectively implemented, could stimulate economic growth, reduce inequality, and enhance the overall standard of living in India. The focus on sustainable practices and digitalization indicates a forward-looking strategy aimed at making India more resilient and competitive on the global stage.
- Employment and Skilling Initiatives: Significant investment in employment and skilling, especially for the youth, will help bridge the skills gap and reduce unemployment. This can lead to a more skilled workforce and higher productivity.
- MSME Support: Increasing the limit for Mudra loans and providing new mechanisms for MSME credit will strengthen the backbone of India’s economy by ensuring that small businesses have access to necessary funds.
- Digitalization and Simplification: Efforts to digitize and simplify processes in the financial sector, like revamping the Shram Suvidha Portal and improving the ease of doing business, will enhance transparency and efficiency.
Dr Subir Verma, Director, FORE School of Management : The 2024 Union Budget demonstrates a robust commitment to advancing India’s educational framework and employment landscape. The substantial investments in expanding higher education institutions and establishing new ITIs will significantly enhance access to quality education, particularly for students from Tier 2 and Tier 3 cities. Additionally, the introduction of education loans up to ₹10 lakh for students in domestic institutions will make higher education more accessible and affordable. The emphasis on increasing female enrolment in STEM courses is a progressive step towards achieving gender parity in education and the workforce. The initiatives are also poised to create a more skilled and employable workforce, driving economic growth and innovation.
Few Key Areas:
First time Job Achievers’ : The government aims to boost skilling and job creation by launching several initiatives. One such is providing internship opportunities in 500 top companies to 1 crore youth over 5 years
Employment Linked Incentives : 3 schemes for ‘Employment Linked Incentive’ : Scheme A: First timers; Scheme B: Job creation in manufacturing; Scheme C: Support to employers
Medical Colleges and Infrastructure: Government plans to set up more medical colleges using existing hospital infrastructure.
New IITs & IIMs: The Budget aims to establish new IITs & IIMs
Skill Loan Scheme Revision : The Finance Minister announced a revision to the model skill loan scheme. It will now facilitate loans of up to ₹7.5 lakh with a guarantee from a government-promoted fund. This measure is expected to help 25 lakh student
Academia’s Call for Funding Boost: Academia in India has called for a Budget that aligns with the National Education Policy (NEP) 2020, to support innovation, fostering holistic growth emphasizing Industry-academia collaboration for a future driven education system.
