Pre-Budget Expectations: Industry Experts Demand Increased Funding, Skill Development And Quality Reforms In Education

Leaders from top institutions call for enhanced education funding, industry collaboration, digital infrastructure and skill development in Budget 2024-25 to foster innovation and drive economic growth.

V Ramgopal Rao, Vice Chancellor, BITS Pilani Group of institutions and former Director, IIT Delhi

V Ramgopal Rao, Vice Chancellor, BITS Pilani Group of institutions and former Director, IIT Delhi said, “In the 2024-25 India budget, a significant boost to education and research funding is imperative. Despite ranking third globally for scientific research, India’s 40 position in innovation is worrisome. With R&D spending at just 0.65 per cent of GDP, much lower than the BRICS average and the global average of 1.8 per cent, it is crucial to enhance this investment. The National Research Foundation (NRF) should play a pivotal role in addressing these gaps. More schemes specifically targeting the academia-industry collaborations are the need of the hour. 

Furthermore, the rising trend of Indian students studying abroad, with over 7,50,000 in 2022, underscores the urgency to improve domestic education standards. The remarkable 35 per cent increase in students opting for the US and the estimated $70 billion Indian households will spend on foreign education by 2025, highlight the need for robust educational reforms. Prioritising education and research in the upcoming budget will not only curb this exodus but also foster innovation and economic growth within the country.”

Chandrasekhar Sripada, Clinical Professor (OB) , Indian School of Business

Chandrasekhar Sripada, Clinical Professor (OB) , Indian School of Business emphasised that,  “This budget is a great opportunity for the Government to recognise the twin forces of digitalisation and demographic shifts as imperatives for revisiting the nation’s overall job design and employment generation strategies. To drive the concept of ‘Remote Work’ to create more inclusive employment, it is imperative that as a first step, the budget encourages large city-based companies to offer employment to the small towns and build their rural talent workforce. Companies should be provided with incentives for setting up co-location spaces in small towns and establishing more offices/work sites in tier two and three towns. This, in turn, will require special allocation for skilling in rural areas, including how to work effectively from remote locations. Provisions must be made to augment broadband internet in rural locations significantly and other infrastructure facilities to help large companies either to go there or offer remote/hybrid work options to small-town talent. 

In order to boost this movement, it is imperative that the hardware industry be encouraged to design and sell affordable work devices that can be used from anywhere for work and learning. Women’s participation in the labour force can be improved if the upcoming budget can target MSMEs and incentivise them to offer flexible work options.”

Mahadeo Jaiswal, Director, IIM Sambalpur

Mahadeo Jaiswal, Director, IIM Sambalpur, said, “As we approach the Monsoon Budget 2024, it is imperative to align our educational priorities with the evolving demands of the industry. The increase in allocation for the Higher Education Department to Rs 47,619.77 crore is a welcome step, reflecting a commitment to strengthening our academic infrastructure. However, we must also address the stark disparities highlighted by the recent UDISE+ and National Achievement Survey data, which show significant challenges in our education system, particularly in states like Odisha.

I believe that this budget should emphasise providing access to quality education, fostering innovation and developing skills that address global challenges. Enhancing infrastructure and resources, capacity building, encouraging innovation and research through increased funding and grants, expanding upskilling and reskilling programmes to meet the needs of a dynamic job market are essential steps. By focusing on these areas, we can cultivate future leaders capable of steering India towards a skill-based and sustainable future. We look forward to the support and vision for the upcoming budget."

Priya John, Principal, DPS Indirapuram

Priya John, Principal, DPS Indirapuram stated, “Budget support may also be provided to build entrepreneurial capacity for traditional micro industries such as handloom, handicraft and tech agriculture.

The education sector has high hopes for the Budget 2024-25. Experts believe that this time, the government should focus specifically on strengthening the educational infrastructure, training teachers and promoting digital education. Special plans are also needed to bridge the gap between schools in rural and urban areas.

If economic conditions remain favourable and the government prioritise education, we could see an increase beyond the 13 per cent mark. This would align with the trend of continuous support for educational initiatives and the need to strengthen the educational framework further. In addition, it will provide continuous support for educational initiatives, enabling robust funding for infrastructure development, technological integration and critical programmes in schools and higher education institutions.”
 

Alka Kapur, Principal, Modern Public School, Shalimar Bagh

Alka Kapur, Principal, Modern Public School, Shalimar Bagh, said, “The various reforms proposed in the Union Budget 2024-25 are certainly a landmark initiative in bringing about a sea change in our education system. Integrating technology, enhancing teacher training and emphasising skill-based learning are essential steps to align traditional education with the evolving demands of the future. It empowers both teachers and students by creating an atmosphere where holistic development and innovation can surge ahead. At Modern Public School, we gladly welcome these changes and look forward to our students benefiting from this new dynamic and inclusive educational framework.”

Deepankar Chakrabarti, Director, Jaipuria Institute of Management

Deepankar Chakrabarti, Director, Jaipuria Institute of Management, emphasised, “The major thrust of this budget would be on development of social infrastructure like health, education and housing etc. Emphasis on quality education and training for youth and women will be the top priority for inclusive development. We expect the government will provision more expenditure on vocational and skill-based education and strengthen the education infrastructure in building new India. We would expect to leverage the digital transformation benefits and the government will put more focus on AI and tech-based centres to spearhead the development process, which has been a part of the previous budget. Similarly, we hope the government would spend more on research and development, especially in health education, including setting up nursing colleges and setting up more medical colleges in each state. Budget provisioning for NEP and its implementation will be of the utmost urgency, considering its long-term vision for bringing much needed transformation in the Indian education landscape and to encash the benefits of India’s demographic dividend.”

V. N. Rajasekharan Pillai Vice Chancellor Somaiya Vidyavihar University

V. N. Rajasekharan Pillai Vice Chancellor Somaiya Vidyavihar University stated, “The new Government’s (Modi 3.0) intent to strengthen education in the country is evident from the allocation of Rs. 1,20,628 Crore, up 7 per cent from the budget estimate for the previous year. The steps taken by the Union Minister for taking inputs from the School and Higher Education leaders/experts in this context are laudable. The decision to substantially improve the Facilities at educational and health establishments and to fill all the vacancies of teachers and health professionals in institutions is definitely the way forward. The implementation of the New Education Policy entails stepwise upgradation of major high-grade Colleges into Universities. Conversion of Colleges into Universities requires more investment into infrastructure, HR and research. A fair realisation of these objectives of NEP is possible by significant investment in higher education. For higher education and research, the Government has requested to formulate guidelines for the fund mobilisation and utilisation of Anusandhan National Research Foundation (ANRF) through three National Science Academies.

The ANRF is to be implemented with a total budget of Rs. 50,000 crores for five years, out of which a major share of around 70 per cent, is estimated to come from non-government sources. ANRF will address many big challenges of the present R&D ecosystem including that of lower participation of private sectors in R&D. ANRF will seed, grow and promote R&D and foster a culture of research and innovation throughout India’s universities, colleges, research institutions, and R&D laboratories by forging collaborations among the industry, academia, and government departments and research institutions, and create an interface mechanism for participation and contribution of industries and State governments in addition to the scientific and line ministries. A priority allocation in the current year’s budget is expected for this as well.”
 

Pankaj Jathar, CEO, NIIT

Pankaj Jathar, CEO, NIIT, stated, “As we near Union Budget 2024-2025, we look forward to a substantial increase in budgetary allocation for education and skill development to about 6% of the GDP which will be vital to reach the full potential of NEP 2020. We appreciate the government's dedication to promoting education and skilling and hope the upcoming budget will build upon these initiatives to create even more opportunities. We anticipate policies that support public-private partnerships, enhancing the reach and impact of our skilling efforts. A focus on sustainable employment opportunities will not only uplift individuals but also drive the economic growth of our nation.”
 

Gaurav Himkar, CEO, GD Goenka Group

Gaurav Himkar, CEO, GD Goenka Group, emphasised, "The recent decision by the GST council to exempt hostel fees from tax is laudable and the education sector is now hoping for no or minimal GST on the services and goods it utilises. The sector is also of the firm opinion that if India aims to become a "Vishwa Guru" in education, it must invest significantly in rural areas, particularly in educational infrastructure, teacher training, technology and easier pathways to higher education. 

The government should also consider incentivising corporations and individuals who invest in educational initiatives. Similarly, innovative approaches could be explored, such as allowing investors to take a minimum profit from their investments in educational projects.”

Sangita Dutta Gupta, Professor of Economics, BML Munjal University

Sangita Dutta Gupta, Professor of Economics, BML Munjal University, stated, “Salaried taxpayers have not embraced the new tax regime fully. The new tax regime may still be good for income below Rs 15,00,000. However, there is no inflation adjustment above Rs. 15,00,000. Thus, taxpayers in the high-income bracket prefer the old regime over the new one. It would be helpful if a tax rate of 30 per cent were imposed on incomes above 25,00,000. It will make the new tax regime attractive and at the same time propel consumption and savings.”

Aunindyo Chakravarty, Dean, Undergraduate Programme, School of Management, IILM University Gurgaon

Aunindyo Chakravarty, Dean, Undergraduate Programme, School of Management, IILM University Gurgaon, remarked, “The FM should focus on two things: First, fixing the learning gap amongst young children caused by the COVID lockdowns. The second is to incentivise Indian educational institutions to invest in top of the line higher education. Indian students are expected to spend nearly Rs.6 lakh crore on education in foreign countries in 2024-25. The Budget needs to find ways to keep a big chunk of these students here. This will happen if universities get fiscal and infrastructural support to attract the best faculty and researchers and build world-class institutions.

Sanjay Gupta, VC, World University of Design

Sanjay Gupta, VC, World University of Design, remarked, "As we approach the upcoming budget, it is imperative that we recognize the transformative power of creativity and design thinking. Integrating these elements into school curricula will nurture the next generation of innovators. We also urge the government to incentivize specialised higher education programmes in creative fields, fostering a skilled and imaginative workforce.

Developing vocational training and apprenticeship programmes in the creative sectors will ensure hands-on experience and job readiness. Furthermore, providing education on intellectual property rights is crucial for protecting the work of creative professionals.

In today's digital age, it is essential to equip creative professionals with advanced digital skills to stay competitive. Additionally, developing flexible work visa programmes for international creative talent will enrich our cultural and creative landscape, promoting a vibrant and dynamic economy. I would also recommend Integrating sustainability into creative education programmes. 

India's creative economy holds immense potential but is currently underutilised. While sectors like media and entertainment thrive, the overall contribution to GDP remains a modest 2.5 per cent, far below its capacity. Despite employing eight per cent of the workforce, challenges such as weak intellectual property protection, limited finance and a skills gap hinder growth. A British Council study estimated that 1.5 million Indians were employed in cultural and creative industries in 2016, suggesting a potentially much larger figure with improved data collection. Weak intellectual property protection fuels piracy, deterring investment and collaborations. The absence of specialised education and industry-academia linkages contributes to a skills gap hindering global competitiveness. To fully harness this potential, India requires a comprehensive policy framework focused on education, infrastructure and intellectual property. By fostering collaboration, the creative economy's contribution to GDP can surge from Rs 8.39 trillion to over Rs 20 trillion by 2030. Countries like the UK and South Korea exemplify the creative economy's role as a global growth engine. India, with its rich culture and talent, has similar potential. Unlocking the creative economy means significant export opportunities, cultural soft power and the chance to become a global creative hub. The economic benefits could be substantial. Therefore, a robust policy framework is not just economically prudent but strategically essential for India's global standing. The question is not about investing in the creative economy but about the cost of inaction. India must seize this opportunity before the gap with other countries widens further.’’

Manoj Goel, Joint Director, KIET Group of Institution

Manoj Goel, Joint Director, KIET Group of Institutions, remarked, “As the Indian Lok Sabha election results are expected to be announced soon, we at KIET Group of Institutions remain optimistic about the future of higher education under the new government. We hope for continued support and policies that promote academic freedom, innovation and industry collaboration. With our strong foundation in engineering, management, pharmacy and cutting-edge research, we look forward to partnering with the government to advance educational excellence and foster an environment where students can thrive and contribute significantly to the nation's growth. Together, we can create a robust educational framework that prepares our youth for global challenges and opportunities.”

Mayank Badhwar

BW Reporters The reporter works as Senior Correspondent with BW Businessworld