The education sector is looking keenly towards the Union budget 2025 and hopes that the budget will take transformative steps to bridge the widening gap between education, skilling, and employability. The aim should be to integrate skilling with higher education, which in turn would create better employment opportunities for students. At the same time, it is expected that advanced skilling programs should be regularly funded to make our students more employable. There should also be a focus on further expanding internship and mentorship programmes.
“We urge the government to strengthen the Model Skilling Loan Scheme, which includes targeted funding for industry-aligned, short-term certifications that enhance employability in dynamic sectors like marketing, technology, and digital innovation. Educational institutions must be incentivized—and held accountable to embed experiential learning, internships, and mentorships as a core part of their programmes. The burden of making students workforce-ready cannot rest solely on companies. At the same time, investments in AI hubs, EdTech regulatory frameworks, and a nationwide push toward digital-first classrooms are non-negotiable if we want to future-proof our workforce. We hope this budget delivers not just on numbers but also on systems and accountability. India’s youth need more than degrees; they need a cohesive ecosystem that empowers them to become industry leaders from day one,” pointed out Varun Satia, Founder and CEO, Kraftshala.
Stakeholders in the education and the edtech industry feel that employment and skilling were highlighted as key priorities in the interim budget, with the finance minister unveiling several initiatives to empower youth and drive job creation. Hence they anticipate an even stronger focus from the finance ministry on enhancing employment opportunities and fostering skilling initiatives.
“With over 68 per cent of India’s population in the working-age group, the country is uniquely positioned to achieve rapid economic growth compared to other major economies. However, to fully capitalize on this demographic dividend, it is essential to generate more employment opportunities and equip our youth with the skills needed to meet evolving industry demands,” remarked Nikhil Barshikar, Founder and CEO, Imarticus Learning.
This expert says that edtech platforms have emerged as vital enablers in this process, innovating continuously and fostering strategic industry-academia collaborations to bridge the skills gap across the nation.
“We hope the government considers reducing the current 18 per cent GST rate on online education services, making quality education more accessible and affordable. In addition, introducing tax exemptions on fees for upskilling courses would further encourage working professionals to pursue continuous learning, ensuring they remain equipped to meet the demands of the rapidly changing job market. Employers who invest in upskilling and reskilling their workforce should also be incentivized through tax breaks, which would accelerate workforce productivity and contribute significantly to the nation’s economic growth,” added Barshikar,
Education experts are of the opinion that the government could also foster innovation in skill development by providing dedicated funding and grants for startups in the skilling domain, encouraging more entrepreneurs to address the workforce’s evolving needs. Simplified compliance norms and support for Public-Private Partnerships (PPPs) can enhance the reach and effectiveness of these initiatives.
Furthermore, there is a pressing need to boost the adoption of National Education Policy (NEP) initiatives, such as the Academic Bank of Credits (ABC), which aims to provide students with greater flexibility in learning. While the initiative holds immense promise, only 2,327 universities have registered for it so far. The government must take steps to incentivize more universities and institutions to join this framework, ensuring its potential to revolutionize higher education is fully realized. A robust focus on skilling, coupled with enabling policies and infrastructure support, can truly position India as a global leader in talent and innovation, helping us unlock our full demographic potential.
There are strong expectations about bridging digital gaps to improve employment opportunities. “As we approach the Union Budget, key focus areas must include steps to empower education and bridge digital gaps. A reduction in GST on education services is essential to make quality learning more affordable and accessible, especially for middle-class families. Additionally, targeted investments in rural internet infrastructure are critical to bringing underserved communities into the digital economy, enabling them to participate in new-age learning and employment opportunities. To address India’s growing skills gap, the government should provide incentives for vocational training platforms to foster job-ready talent across sectors. Skilling initiatives, particularly in areas like digital literacy, green energy, and logistics, will drive employability and long-term economic growth,” said Anthony Fernandes, Founder – Shaalaa.com.
There are also expectations that the digital infrastructure will be enhanced and there would be a sharp focus towards this.
“With the rising importance of digital education, I hope the budget will prioritise investments in enhancing digital infrastructure, promoting online education, and developing standardized quality assessment frameworks. I also believe it is essential for the government to introduce policies that make international education affordable and accessible for students. This will help India's education sector unlock its true potential and will enable it to emerge as a global hub for learning and innovation,” said Arnav Kumar, Co-Founder, Leap.
