The education sector has rapidly transformed since the pandemic with the rise of digital learning. According to a report by KPMG, India is the second-largest market for e-learning after the US, with a growth of $1.96 billion in 2021. This shows that India is high on digitisation, and to further grow this sector, major edtech players have certain expectations from the Union Budget, which will be announced on February 1.
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At present, edtech players expect the government to make focused budgetary allocations for the industry while incentivizing the sector through new as well as existing fiscal policies.
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The previous year’s budget rolled out the National Digital Educational Architecture (NDEAR), which aimed at improving the country’s education system by empowering the youth with better learning and skill development opportunities. It also opened doors to international collaborations. However, despite these efforts, the education sector has noted its reservations.
Higher allocation of funds and tax reduction
The first and foremost expectation from the union budget 2022 is a higher allocation of funds for education and a reduction in taxation. The budgetary allocation in 2021 was less by six crore rupees than in 2020. With the prolonged pandemic and rise of digital learning, there is a need to focus on nationwide accessibility.
Emerging edtech enterprises pay 18 per cent GST, unlike conventional school education. Reducing the tax percentage will help offer affordable products and services and attract young learners from all areas of society towards online education.
Redefining education infrastructure
While the NEP 2020 proposed integrating online and hybrid learning models, slower connections and costly data charges impact the effectiveness of previous initiatives. Government efforts like the BharatNet project are expected to boost accessibility and high-speed broadband connections to everyone.
Creating a cybersecurity system
With digital technologies come high cyber risks. The union budget is expected to allocate a certain amount towards building a powerful cybersecurity ecosystem and infrastructure. This is crucial for all sectors, especially education, as it undergoes a massive digital transformation in the post-pandemic era.
Ease of loans and finance procedures
Edtech startups help advance the education system, and therefore, it is expected that the loan and finance procedures should be eased. There should be provisions for collateral-free business loans with zero service charges to make it easy for new entrants. Additionally, there should be annual targets of fund distribution to allocate finances to new ventures.
Increased spending on R&D
There has been a surge in new research, developments, and innovation in the Indian edtech Industry. With new technologies and learning models emerging, there is a need for funding around R&D to further improve the quality of education.
Empowering marginalised groups through technology
While India has made the most strides towards digitisation, certain segments of populations are still lagging. Technology is expensive and requires heavy investment. Therefore, it is expected that the Union Budget will focus on providing access to technology to marginalised groups.
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Enhanced attention towards welfare schemes
Previous initiatives like Sarva Siksha Abhiyaan, Midday Meals, and others have played a crucial role in improving the education system. In addition to these, there is a need for further improvement of existing schemes and new initiatives that will help achieve sustainable growth and development.
The education sector plays an important part in leading the country’s vision to become a $5 trillion economy by 2025. The budget can boost the edtech sector and help drive economic development. With the budget coming up, all eyes will see which announcements will make India’s education sector stronger and more accessible for students across the country. It is expected that edtech startups will receive a special focus this time.
— Authored by Anil Nagar, CEO of Ada247
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