How sharp and crystal-clear India’s vision for digital transformation is seen in the way the finance minister Nirmala Sitharaman prepared and presented the union budget last year. Contrary to convention, last year’s fiscal budget was presented and disseminated in a digital format. Of course, India is high on digitalization and the resounding success of the Ed-Tech sector in the country is a sheer testimony to this desired change. To contribute further to the education sector and the overall economy of the country, there are some expectations of EdTech players from the upcoming union budget.
After rolling out the New Education Policy, the announcement of the National Digital Educational Architecture (NDEAR) in the last year’s budget was an impressive attempt by the Government to improve the country’s education system. Moreover, as India is also making international collaborations under the Skill India programme, it was the strategy to empower youths with better learning and skill development opportunities and programmes like Natural Language Translation Missions are expected to garner desired results in the future.
These policies will enable youth to align themselves with modern job requirements in India and abroad. The Ed-Tech sector can immensely support this mission with its extensive outreach and AI-embedded hybrid learning models. But, as the sector is in the emerging phase, it seeks favourable government policies and incentives.
Since the outbreak of the pandemic, EdTech platforms have greatly reduced the learning gap in the country and they can bring magical results in connecting the rural populace of the country with virtual classrooms. Undoubtedly, the government has limited resources to develop quality educational infrastructure in remote areas. But, with the advent of digital tools and hybrid learning models, we can overcome the majority of material challenges. Of course, the support of private players would be quite imperative in this regard and working on PPP can certainly ensure a win-win equation. In this realm, the Finance Minister should provide some quality incentives to the burgeoning EdTech sector of the country. The foremost change that the industry expects is a reduction in the GST from 18% to 5%. It will help them to focus on developing more innovative solutions for the greater good of the whole society.
Loan and finance procedures must be eased for Ed-Tech startups which are performing as an engine of advancement in the Indian education system. So collateral-free business loans along with zero service charges to make the finance part hassle-free for the new entrants. These loans should be available to them at a very nominal rate of interest. Also, profit-making EdTech startups should not be excluded from these benefits and relaxations. Annual targets of distribution of funds should be used to allocate finances to new ventures and the process for that should be easy-going. Hence, designated banks should be constituted for ease of finance.
Hopefully, the Union Budget 22-23 will bring glad tidings for India’s EdTech ecosystem. The finance minister understands the significance of this sector and she will definitely come up with some constructive plans that will help India become the world’s EdTech capital.
The Author is Founder & CEO at StockDaddy