What does the EdTech sector want from Union budget 2024?

The EdTech sector has great expectations from the upcoming Union budget. The sector wants reduced GST on digital educational content, increased funding on innovative educational solutions, and a hike in the overall education budget.

The sector also expects the government to initiate measures to reduce GST on upskilling and re-skilling programmes too to make them affordable to students. There is also expectations to bring the skilling and re-sklling programmes under the education loans purview to draw more students towards such programmes.

“As the Modi 3.0 government prepares the new Union budget, we expect to see greater support for digital infrastructure in schools and more funding for innovative educational technologies. Additionally, GST should be applicable on both print and digital solutions so as to create efficiencies in the ecosystem. These are important for making education accessible, affordable and effective for millions of students. We believe new policies in the education system should bridge the gap between in-class and at-home learning, providing every child with quality resources. Using tools like STEM/STEAM kits and reading programmes will enhance learning. Promoting activities like storytelling, Olympiads, and coding competitions will encourage creativity and critical thinking,” noted Amit Kapoor, co-founder, Eupheus Learning.

Many other stakeholders feel that investments in technology-driven and blended learning models can transform the education landscape across India. The National Education Policy 2020 emphasizes making learning interactive, engaging, and meaningful, and additional budget allocations can help bring this vision statement to life.

“Enhanced funding can facilitate the integration of digital tools in classrooms, assist teachers in creating comprehensive lesson plans, and ensure that students from all backgrounds have access to quality education,” remarked Monica Malhotra Kandhari, managing director of Aasoka.

Players in the EdTech space also expect the government to collaborate with stakeholders in the segment to tackle prevailing educational challenges, especially by bridging the digital divide, a crucial initiative that requires fortifying the technological infrastructure of schools nationwide. “We seek lowered GST rates to five per cent on online learning. We believe that the forthcoming budget has the potential to transform the EdTech sector into a powerful engine for inclusive innovation,” said Ujjwal Singh, founding CEO, Infinity Learn by Sri Chaitanya.

The EdTech players also hope that the government increases the overall education budget beyond 13 per cent as it would provide continuous support for educational initiatives and further strengthen the educational framework. Such an increase would allow for more robust funding of critical programs, infrastructure development, and technological integration in schools and higher education institutions.

“The government should focus on reduction in GST rates on digital educational content and services. Lowering these rates would significantly enhance the affordability of online learning, which has become increasingly vital in today’s digital age. This measure would be advantageous for students by making high-quality educational resources more accessible and for EdTech companies by fostering a more conducive environment for innovation and growth. A strategic increase in the education budget coupled with targeted tax relief measures can lead to substantial progress in the education sector, ultimately benefiting students, and educators, and leading towards the transformation of the education sector,” remarked Sumit Singhal, Subject Matter Expert, S.N. Dhawan and CO LLP.

Similarly, other players expect that making skill development accessible and affordable becomes of utmost importance in the education field. “I hope the government takes measures to reduce GST on upskilling and re-skilling programmes. Lowering this tax burden will make these programmes more affordable, encouraging greater participation and investment in personal development. Additionally, incorporating upskilling programmes into educational loan schemes is crucial. Currently, these programmes do not fall under the purview of educational loans, resulting in higher interest rates for learners. By including them in educational loans, we can make these programmes more accessible and affordable, significantly alleviating the financial burden on individuals seeking to enhance their skills,” pointed out Hari Krishnan Nair, co-founder, Great Learning.