The Hon’ble Finance Minister of India (FM), Smt. Nirmala Sitharaman presented the Union Budget 2024 on July 23. This is the first Budget of the BJP-led NDA since Prime Minister Narendra Modi began his third term. While addressing the Union Budget for 2024-25, the Finance Minister proposed a significant allocation focused on enhancing the country’s education, employment, and skills.
The Union Budget 2024 highlights a significant focus on education, employment, and skilling, with substantial investments to develop a more skilled and educated workforce. The stated plans and allocations are expected to boost educational infrastructure, job creation, and skill development across the country.
During her speech, the Finance Minister unveiled a new initiative to provide internship opportunities at 500 prominent companies to 1 crore students over the next five years. Each student will receive a monthly stipend of Rs 5,000 plus a one-time assistance payment of Rs 6,000. Amongst these, Rs 1.48 lakh crore has been allocated explicitly for education, employment, and skilling.
Sitharaman emphasized the Government’s commitment to improving skill development, revealing that the new schemes will train 20 lakh youth over five years. This move is expected to substantially contribute to the nation’s workforce by providing young people with the skills they need to succeed in various industries.
As part of this Budget, the Government will offer financial assistance of up to 10 lakhs in loans for higher education in domestic institutions. This Support will be provided through e-vouchers, which will be directly provided to one lakh students annually, along with an interest subsidy of 3 per cent of the loan amount.
The Finance Minister also highlighted several initiatives for the skill development sector. These include upgrading 5,000 Industrial training institutes (IITs) using the hub-and-spoke model, aligning course content with the industry’s skill requirements, and revising the model skill loan scheme to facilitate loans up to Rs 7.5 lakh with a guarantee from the Government. The model skill loan scheme is likely to benefit 25,000 students per year.
In the February edition of the Union Budget 2024, Finance Minister Nirmala Sitharaman stressed that the National Education Policy (NEP) 2020 has increased the number of higher educational institutes and women in STEM courses in the last ten years.
Education stakeholders are keen to share their insights on the new Budget and how it can benefit the education sector. Here are some of the quotations from edtech founders and other stakeholders:
Prateek Maheshwari, Co-Founder of PhysicsWallah and Chair of the India EdTech Consortium (IEC), said, “I appreciate the Budget 2024 announcements and see them as positive steps towards Viksit Bharat. The Government’s focus on closing the skill gap is clear with five new schemes. One key scheme promotes collaboration between the Government, academia, and industry to upskill youth by matching course content with industry needs and adding new courses for emerging demands. This is a crucial development, and the EdTech sector can significantly expand this initiative across Bharat. For students who are not eligible under any scheme or policy, the announcement of a loan of Rs 10 Lakh to pursue higher education at any domestic institution is in line with NEP 2020’s vision of improving the Gross Enrollment Ratio of the nation and the Government should also look at introducing academic performance-linked models of funding for Educational programmes.”
Prateek believes skill-building loans and programmes for women and girls will help the country reap demographic and gender dividends, resulting in increased economic growth.
Rohin Kapoor, Partner, Education and Skilling, Management Consulting, BDO India, added, ‘The announcement of INR 1.48 lakh crore provision, along with inclusion in the list of 9 priorities of the Government, spells out an intention to truly transform the sector for the upliftment of the society, especially youth & women. Announcing three employment-linked incentive schemes covering first-timers in manufacturing & other sectors has the potential to generate millions of job-related opportunities in the formal sector. Furthermore, investments in upgrading 1,000 ITIs with outcome orientation & improving access to skilling/educational loans are expected to empower the next generation to pursue higher & vocational education programmes. Offering paid internship opportunities in top companies to over one crore youth will likely open multiple doors to employment whilst bridging the gap between academia/skilling institutions & the corporate world.”
Kapoor also expressed his disappointment regarding the latest NEET chaos, saying: Unfortunately, no announcements were made regarding restructuring the NTA, digitizing competitive exams to avoid a NEET-like fiasco, or incentivizing foreign investment in K12 and higher education.
Expressing his excitement, Prof. Dr M.S. Moodithaya, Vice Chancellor, NITTE Deemed to be University, said, “I am happy to note that the Union Budget 2024-25 has rightly recognized the focus on India’s Youth as the route for economic growth. To harness the potential of our youthful population, the Finance Minister has made provisions for skill development, education, entrepreneurship, innovation, and employment generation. The proposal to provide Rs. 1.48 lakh crore for education, employment and skill development is most profound. Financial Support for loans up to Rs. 10 lakh to students aiming for higher education in domestic education is a good move for the National Education Policy. Another ambitious announcement is the proposal to provide internships for one crore youth, with a stipend of Rs. 5,000 and one-time assistance of Rs. 6,000. How would the Finance Minister ensure the industry responds positively by allocating resources from their CSR funds.”
In her address presenting the Union Budget 2024, the Finance Minister introduced a PM Package consisting of five projects to increase employment and skilling, with a total investment of Rs 2 lakh crore. This year, Rs 1.48 lakh crore has been allocated specifically for education, employment, and skill development.
Medhavi Skill University- Sikkim, Kuldip Sarma, MSU’s Co-Founder and Pro-Chancellor, said, “The implementation of NEP2020 will be bolstered with Education Budget 2024 highlighting productivity, employment and skilling, and manufacturing and services as priorities. In addition to the budget allocation of Rs 1.48 lakh crore to the education, employment, and skilling initiatives, specific initiatives like job assistance for benefiting 30 lakh youth, incentives for new jobs in the manufacturing sector and upgradation of 1000 ITIs will bring skill development and practical learning to the fore. The new centrally funded scheme, in partnership with state governments and companies and announced paid internships in top firms, will aid in achieving the goal of skilling 20 lakh youth in the next five years.”
Arun Prakash, CEO and Founder of GUVI stressed the PM package, which included five projects, stating, “The Union Budget’s focus on upskilling Indian youth and higher education through financial packages and loans up to INR 10 lakh will have long-term benefits. The Prime Minister’s Package, which includes five schemes with an INR 2 lakh crore budget to boost employment and skills, will help India become a technology hub. This will benefit the EdTech industry and other sectors like IT by providing a steady flow of trained professionals. The centre’s focus on promoting employment, upskilling, and supporting the middle class is a smart policy that will drive long-term success and position India as a leader in key sectors.”
Highlighting the positive impact of the Union Budget’s focus on education and upskilling, Rishabh Khanna, CEO and co-founder of Suraasa, said, “The Finance Minister’s emphasis on education in the Union Budget is a commendable initiative. Allocating INR 2 lakh crore for skilling, among other measures, will significantly enhance the country’s educational infrastructure. This investment will provide educators with ample opportunities to upskill in trending areas. Additionally, the focus on employment generation and the strategic package for upskilling the Indian youth will bolster the aspirations of numerous job seekers, particularly within the teaching profession, and promote professional growth.”
Ashish Saraf, VP and Country Director, Thales in India, said, “We applaud the Government’s emphasis on skilling, research and innovation, complementing the ‘Viksit Bharat 2047’ vision in the Union Budget 2024-25. The Budget’s commitment to skilling 20 lakh youth over the next five years through centrally sponsored schemes and providing skilling loans will pave the way for cultivating a strong and future-ready workforce. These measures will create pathways for youth to gain essential skills, enhancing employability. We also welcome the focus towards inclusive and holistic growth through several other announcements, including employment-linked skilling schemes, internship opportunities to students in 500 top companies, and the allocation of over ₹3 lakh crore to advance women’s roles.”
Prof. (Dr.) Madhu Veeraraghavan, Pro Vice Chancellor, Manipal Academy of Higher Education, Bengaluru, who holds a Doctorate in Finance, stated, “Public Sector Units (PSUs) are the single biggest repositories of industrial skills. Their divestment could have been strategically used to fund skill development clusters in emerging sectors such as Fintech, Logistics, Textiles, and Defence Production. Additionally, lenders to students possess critical insights into the employability of their borrowers and could be incentivized to align education and skills training with industry needs, enhancing efficiencies”.
According to the Union Budget, the Budget for leading business schools, known as Indian Institutes of Management (IIMs), has been reduced for the second consecutive year. The Budget for school education has been boosted by over Rs 535 crore, but the grant for higher education declined by more than Rs 9,600 crore from the previous fiscal year’s revised estimate (RE).
Pankaj Jathar, Chief Executive Officer of NIIT Ltd, said, “The budget announcement has laid a strong foundation for advancing education, skilling, and employment opportunities and is commendable. The allocation of Rs 2 lakh crore for the five employment and skilling schemes, along with Rs 1.48 lakh crore for education, employment, and skilling, underscores the Government’s dedication to the country’s youth and its commitment to propel growth. The new centrally sponsored scheme aimed at skilling 20 lakh youth over five years will significantly contribute to fostering a skilled workforce. This significant step is the need of the hour to bridge the gap between education and the skills essential to equip the youth to be industry-ready. These initiatives will help us maximize our education and skilling efforts, propelling the next growth phase for the Indian economy.”
Union Education Minister Dharmendra Pradhan also expressed his thoughts on the Union Budget 2024. He stated: The series of comprehensive and concrete measures announced by the finance minister will be a” win-win for all stakeholders — students, academia and industry”, adding that this is going to fulfil aspirations of our youth, empower people with more livelihood opportunities, increase accessibility to quality education and skills and is also going to create over 4.1 crore new jobs in the next five years.”
Dr. Srinivasan. K, Director of MBA ESG India, welcomed the recently presented Union Budget, saying, “Management colleges across the country exude confidence in the Union Education Budget 2024, presented by the Union Finance Minister Nirmala Sitharaman, emphasizing the need for innovative and access-based education. This commitment is cemented for the future business leaders of our country because an absolute allocation of ₹1.48 lakh crores has been made for education, employment, and skill development. The Government has come forward with a scheme of providing loan assistance of up to ₹10 lakh for higher education in a domestic institution, making access to an MBA programme more straightforward and accessible to a more extensive range of talent who dream of pursuing it. The most promising thing for MBA colleges is the introduction of a centrally funded scheme to train 20 lakh youth in five years in association with state governments and companies. This shall ensure that our students acquire industry-relevant skills to fill the gap between academia and professional practice. Apart from this, updating the 1,000 ITIs per the industry’s needs would further enhance the quality of management education.”
The stipend amounting to ₹5,000 and a one-time allowance of ₹6,000 that the students would get under the internship scheme will provide immense hands-on experience to them. This will come along, especially by encouraging companies to use their CSR funds for this initiative, which would fan the creation of a collaboration between MBA colleges and the corporate sector.
Dr Srinivasan feels that the newly proposed Budget for education will help India become a worldwide business and innovation hub by placing its students at the forefront of numerous industries.
Prof Arvind Sahay, Director at MDI Gurgaon, added, “The thrust on education and skills in the Union Budget, presented by Union Finance Minister Nirmala Sitharaman today, is welcome. The focus on employment, skilling, MSMEs, and the middle class addresses short-term and long-term economic concerns. The announcement about internship opportunities for the youth in top companies is the need of the hour. I also like that the Minister indicated that states, industries, and centres will collaborate towards the common objective of training 20 lakh youth over five years”.
“One of the standout measures is the provision of e-vouchers for education loans. These vouchers, which offer a 3% interest rate, will benefit 1 lakh students, significantly reducing the financial burden of higher education. This initiative will enable more students to pursue their academic goals without the constraint of high-interest loans. Additionally, announcing financial Support for loans up to Rs 10 lakh for higher education is a progressive step. This measure will provide much-needed financial assistance to students aiming for advanced studies, ensuring that financial constraints do not impede their educational aspirations.”
He believes that collaborative skilling programmes, introduced jointly with state governments and companies and aimed at training 20 lakh youth over five years, are another positive move.
Dr. K.P. Venugopala Rao, Director of SIBM Hyderabad, also responded to the budget proposal, stating, “The role of education in providing a competent workforce is crucial for determining the nation’s future. India is catapulting to be the fifth largest economy in the world with a young population; it is heartening to see the Budget 2024 has a strong focus on employment, skilling, and MSMEs, offering the necessary impetus to leverage our nation’s resources. The allocation of ₹1.48 lakh crore for education, employment, and skills in this budget is a significant step forward in addressing the educational needs of the youth. This allocation is a 30% increase over the previous figure of ₹1,12,899 crore allocated to the Ministry of Education. This substantial rise underscores the government’s commitment to enhancing the country’s educational infrastructure and outcomes.”
Dr Subir Verma, Director of FORE School of Management, highlighted the impact of Union Budget 2024 on education, employment, and skill development, “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, introducing 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. We at FSM are eager to align our programs with the national priorities and are committed to preparing our students to excel in a dynamic and evolving job market.”
Prof. V. N. Rajasekharan Pillai, Vice Chancellor, Somaiya Vidyavihar University, added, “The Union Budget 2024-25 brings a wealth of promising initiatives for education, skill development, research, and youth empowerment. This budget shows the government’s dedication to building a knowledge-based economy and equipping our young people for future challenges. One of the standout welcome features is the substantial funding for higher education institutions, such as integrated science and technology education, IISERs, and IISc. The new ‘Jai Anusandhan’ scheme, with a massive ₹1 lakh crore fund for research and innovation, is a game-changer. These measures are set to elevate the quality of education and research in India, helping our institutions achieve global excellence.
“The emphasis on skill development is equally impressive. The Skill, India Mission’s success in training 1.4 crore youth and setting up 3000 new ITIs highlights the government’s proactive stance on bridging the skill gap and boosting employability. Increased funding for the National Apprenticeship Training Scheme (NATS) and the National Mission in Education through ICT further ensures that our youth are well-prepared for the digital era”.
Prof. Pillai feels that the budget’s support for entrepreneurship, including interest-free loans under the ‘Jai Anusandhan’ initiative, promotes startup growth and innovation.
The Modi government’s next focus is “employment and skilling,” the recently announced Budget includes a slew of measures to help in these areas. The FM also outlined nine goals for the Union Budget 2024. It prioritizes productivity and resilience in agriculture, employment and skilling, inclusive human resource development and social justice, manufacturing and services, urban development, energy security, infrastructure, innovation, research and development, and next-generation reforms.
In conclusion, EdTech leaders expressed satisfaction with the proposed Union Budget, which focuses on education, employment, and skilling and hopes to benefit the education industry.
