Union Finance Minister Smt. Nirmala Sitharaman presented the Interim Budget for the financial year 2024-25 on February 1. The budget navigated the crucial pre-election year, focusing on fiscal prudence and infrastructure development. The government also prioritised vital sectors like education, technology, healthcare, and clean energy. This budget aimed to balance short-term stability and long-term growth, allowing further analysis and discussion as the nation gears up for general elections.
The education sector has been allocated ₹121,117.77 crores in total. This includes the highest-ever allocation for the Department of School Education & Literacy at ₹73,498 crore for the FY 2024-25. There has been an overall increase of ₹12,024 crore (19.56%) in the Budget Allocation of Department of School Education and Literacy in the FY 2024-25 from RE 2023-24.
As for higher education, the overall Budget Allocation in FY 2024-25 is ₹47619.77 crore, of which Scheme allocation is ₹7487.87 crore and non-scheme allocation is ₹40131.90 crore. There has been an overall increase of ₹3525.15 crore (7.99%) in the Budget Allocation of the Department of Higher Education in FY 2024-25 with respect to FY 2023-24.
In this post, we’ve covered notable highlights in the education sector for technology, school education, higher education, expectations from the annual budget and remarks from industry stakeholders.
Dr. Asmita Chitnis, Director of SIIB Pune, says, “The Indian government’s Budget 2024 initiatives for education are noteworthy. With a substantial allocation of ₹ 1.12 lakh crore, including ₹ 44,095 crore for Higher Education, a skilled workforce is prioritized. The observed 28% increase in female higher education enrolment over a decade underscores efforts towards inclusivity. The commendable achievements of the Skill India Mission, training 1.4 crore youth and upskilling 54 lakh individuals, are instrumental in bridging skill gaps. Notably, 43% of STEM course enrollees are female, reflecting strides in gender inclusivity. These measures promise a brighter future for India’s youth and signify a positive trajectory for national development.”
Increased Allocation for School Education
The finance minister has announced an increased allocation to the School Education Department amounting ₹73,498.10 crore. In the previous Budget, it was ₹68,804.85 crore, while in the Revised Estimates, the amount was increased to ₹72,473.80 crore. The actual expenditure in the year 2022-23 was ₹58,639.56 crore.
The increase in the allocation promises improved learning infrastructure, learning outcomes and equitable access to quality education.
In the PM-SHRI (Pradhan Mantri Schools for Rising India) scheme, the allocation is ₹6,050 crore. The scheme aims to improve infrastructure and curriculum aligned with the New Education Policy 2020. The Pradhan Mantri Poshan Shakti Nirman (PM POSHAN), earlier known as the mid-day meal scheme, has received an outlay of ₹12,467.39 crore. The scheme aims to improve school kids’ nutritional status and address hunger issues.
Mekin Maheshwari, CEO and Founder of Udhyam Learning Foundation, says, “Investing in our youth is investing in India’s future, and this budget rightly emphasises 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.”
Reduced Higher Education Funding & Uncertainty for UGC
The Higher Education Department is allocated ₹47,619.77 crores, while in the revised estimates in the last year, the allocation went up to ₹ 57,244.48 crores. The actual expenditure in 2022-23 was ₹ 38,556.80 crore. The variation is reflected in the reduced allocation for PM girls’ hostels, coming down to ₹2 crore from ₹10 crore in the previous Budget. The total financial aid to students came down to ₹ 1,908 crore from ₹ 1,954 crore in the previous Budget.
The total sum allotted to the All India Council for Technical Education (AICTE) and the University Grants Commission (UGC) in this interim budget has decreased to ₹2,900 crore from ₹5,780 crore. The Pradhan Mantri Uchchatar Shiksha Abhiyan (PMUSHA), which aims to improve the quality of higher education and improve employability, has been allotted ₹ 1,814.94 crore.
Despite the changes in monetary allocation, the budget reflects a powerful message of inclusion, opportunity and innovation.
According to the Union Education Minister, Sh. Dharmendra Pradhan, the New Budget will establish a stepping stone for developing India. New IITs and IIMs have been a part of the discussion. UGC Chairman Sh. M. Jagadesh Kumar added, “We are pleased to see a rise in allocations for Central Universities, deemed universities promoted by the Central government, research and innovation initiatives, the Pandit Madan Mohan Malviya National Mission on Teachers and Teaching, and PMUsha, demonstrating our commitment to these crucial areas“.
Pratik Kapasi, Founder of HeyCoach, says, “The Union Budget 2024 shines a light on India’s future by investing in new ITIs, IITs, IIITs, IIMs, AIIMS, and universities. I truly believe that empowering our youth requires blending the strengths of traditional institutions with the innovative approaches of edtech platforms. This combination nurtures not only academic excellence but also vital skills such as emotional intelligence, creativity, and adaptability. Post-academia, the focus should pivot towards nurturing problem-solving abilities and resilience to confront future challenges head-on.
Edtech platforms extend beyond a supplementary role; they act as pivotal agents of transformation. They democratize access to the best education, customize learning to meet individual needs, and gear students up for real-world challenges. These are the attributes that will sculpt the leaders, innovators, and thinkers of the future. In Conclusion, the role of education is about cultivating a society that values critical thinking, embraces diversity, and is committed to solving complex global issues. Institutions and ed-tech platforms must work in concert to empower the youth, not just as job seekers, but as job creators, thought leaders, and catalysts for change.”
Anticipating New Skilling Opportunities
Union Education Minister Sh. Dharmendra Pradhan also stated, “Skilling and upskilling will be done for 1.4 crore youth of the country as a part of Skill India. This is a sign of enhanced employment opportunities among skilled manpower and an improved lifestyle for people.”
Ankit Shyamsukha, CEO of ICA Edu Skills, says, “It fills me with immense pride to witness the acknowledgment of our pioneering efforts in skill development. The recent announcement by Finance Minister Nirmala Sitharaman regarding the Skill India Mission, with 1.4 crore youth trained and upskilled, reaffirms the importance of our collective endeavour. ”
Mr. Arjun V, Founder and CEO of Arivupro Academy, says, “The budget has drafted very focused guidelines on the holistic development of the nation with a clear agenda for economic growth and becoming a prosperous nation by 2047. The government’s focus on developing the financial sector through investments for growth in size, capacity, skills, and regulatory framework is commendable as it helps drive the necessary infrastructure needed to manage the growth. With an additional focus on skill development and vocational and job-ready youth, I foresee a huge potential for growth in the financial education sector, especially in professional courses like CA, wealth managers, and financial planners. “
Empowering Women
Smt. Sitharaman spoke about improved women’s enrolment in higher education. She said, “Women enrolment in higher education had increased by 28% in 10 years. Girls and women constitute 43% of the enrolment in Science, Technology, Engineering, and Mathematics (STEM) courses — one of the highest in the world. All these measures are reflected in the increasing participation of women in the workforce“.
The improved women’s enrolment indicates progress in gender parity in education, especially in STEM fields. Additionally, schemes like PM Kaushal Vikas Yojana and Stand-Up India continue to receive support that aims to equip women with skills, encouraging them to start their own businesses and explore ventures of entrepreneurship.
Prof. Rudra Pratap, Founding Vice Chancellor of Plaksha University, says, “This interim budget puts the future first by investing in India’s young minds, particularly in STEM education. Empowering young women to excel in these fields is not just about inclusivity; it’s about unlocking India’s full potential for innovation. Seeing them rise to the top of the global STEM enrolment rankings is a powerful testament to their commitment. Equipping our youth with essential skills and cultivating a vibrant research landscape powered by technology paints a positive picture. While resources are important, their effectiveness depends on reaching every corner of society. This budget represents a commendable step towards an educated and empowered youth. Let’s nurture our young minds, especially our talented women, and watch them propel India towards a brighter tomorrow.”
Technology
The interim budget does not explicitly outline concrete plans for promoting technology in education. However, it does mention supporting advanced technology like Artificial Intelligence (AI) and the Internet of Things (IoT), indicating development in future-oriented tech players.
Prashant Singh, Co-Founder and COO of LeadSquared, says, “The interim budget 2024 recognises the potential of tech-focused start-ups and their vital contribution to the development of the country. The continuation of essential schemes like credit guarantee and Start-up India, Funds of Funds show a promising start-up environment in India, one that will provide employment for youth in the country and drive innovation.”
Needless to say, AI is at the core of tech, and we anticipate education-specific technology provisions in the upcoming annual budget. The interim budget has allocated a 30% higher allocation for Production-Linked Incentives (PLI) that aim to boost domestic tech manufacturing across various industries, fostering the tech industry’s growth.
Prof. Dr M.S. Moodithaya, Vice Chancellor of NITTE Deemed to be University, says, “…Among some of the proposals FM made, the provision of ₹ 1 lakh crore for providing interest-free loans to techno-savvy youth to start their enterprises is a welcome development. Because many of our youngsters today are pursuing emerging technologies like AI, Robotics, Data sciences, etc, this could help in harnessing opportunities in sunrise domains. This can boost start-up and entrepreneurship culture among our youth.”
Additionally, the government’s provision of 50-year interest-free loans for tech start-ups indicates encouragement and dedication towards investment, which is deep-tech.
Sarvesh Agrawal, Founder and CEO of Internshala, says, “The interim budget for 2024 highlighted the government’s pursuit towards a Viksit Bharat through technological research and innovation in emerging fields. Emphasising inclusive and sustainable development, the government aims to boost green power and support the electric vehicle manufacturing and charging infrastructure. This vision offers a promising trajectory for entrepreneurship and job creation in this rapidly evolving sector. This will in addition, also lead to a boost in the skilling and job creation in the EV sector. A key highlight from the finance minister’s budget announcement is the expectation of expanded opportunities for Indian youth, both domestically and globally, in areas such as skilling, learning, research, innovation, and career development. The ongoing transformations driven by the new age technologies and data-based advancements present a golden opportunity for aspiring tech enthusiasts. For the educational technology (EdTech) industry, this is the cue to enhance skill development programs in areas like deep tech, generative AI, and green technologies such as electric vehicles and solar power. Another exciting announcement pertains to the provision of a corpus of one lakh crore rupees at low interest rates and for long tenures, particularly beneficial for aspiring Indians looking to enter and progress in the tech industry. If effectively implemented, this initiative could unleash a multitude of opportunities in the entrepreneurial sector, with a strong focus on research and innovation, thus propelling India further towards an Atmanirbhar and Viksit Bharat.”
