Education Budget 2024 Expectations: Boost Funding for AI-Based Technologies, Prioritise School Infrastructure

On February 1, Union Finance Minister Nirmala Sitharaman will deliver the budget for the fiscal year 2024–25. Education sector hopes for the upcoming budget 2024–25, which will focus on funding school infrastructure, increasing funds for AI-based technologies, lowering the GST slab on educational products and services, and augmenting existing space institutes and building new ones.

Budget 2024: Focus on school infrastructure, reduce taxes

The pro-vice chairman of Delhi Public School, Gautam Rajgarhia, observed that rural schools lack proper infrastructure. There aren’t enough of basic amenities like clean restrooms, libraries, science labs, digital facilities, or sports equipment. Rajgarhia continued, “Funding for these amenities should be prioritized in the budget to ensure a safe and conducive learning environment for every child.”

Prateek Maheshwari, co-founder of Physics Wallah (PW), believes that digital infrastructure should be improved to make learning solutions more accessible and easier to implement for kids in even the most remote parts of the nation who want to access high-quality online content.

“More than half of the youth in rural India between the ages of 14 and 18 still find it difficult to solve simple division problems and lack access to digital tools and skills, according to the most recent Annual Status of Education Report (ASER). It takes a strong digital infrastructure to close this gap.”

He went on to say that in order to encourage affordability and lessen the financial strain on parents, the GST slab on educational goods and services needs to be lowered. Maheshwari concentrated on the necessity of public-private sector cooperation in order to bring about significant change in the industry.

The CFO of S Chand and Company Limited, Saurabh Mittal, reaffirmed that all inputs, including paper, printing, content creation, and royalties, are subject to a 5–18% GST rate, whereas the book publishing sector is GST-free. He anticipates a mechanism for refunds or a decrease in the GST rates on services that include royalties.

The product in the book publishing industry is GST-free, but all inputs—paper, printing, consumables, content development, professional services, and even royalties (RCM)—have varying GST rates, ranging from 5 to 18%. This has severely impacted the trade’s margins, which have seen three unfavorable years in COVID-19. The industry is hoping for a refund system or a decrease in the GST rates on services like royalties.

Budget 2024: Focus on space, AI

The International Institute of Information Technology (IIIT) Hyderabad stated that AI-based technology has been a major driver in recent months and that the trend will only pick up speed. It also added that in order for India to catch up with the rest of the world in these areas, significant investments, a progressive policy framework, and increased R&D expenditure are required. In order to create an ecosystem that drives AI innovation and unites government agencies, businesses, NGOs, and academia, the government plays a critical role. India’s investment, as we see an AI-powered future, needs to be both strategic and financial in order to foster cooperative synergies for a thriving ecosystem.

Vineet Nayar, the founder and chairman of Sampark Foundation and a former CEO of HCL Technologies, stated that digital infrastructure, AI literacy, and AI-driven educational models should all be supported by strategic funding. Such programs, he continued, have to go beyond traditional classroom settings in order to guarantee fair access for people from all socioeconomic backgrounds.

Vineet Nayar, the founder and chairman of Sampark Foundation and a former CEO of HCL Technologies, stated that digital infrastructure, AI literacy, and AI-driven educational models should all be supported by strategic funding. Such programs, he continued, have to go beyond traditional classroom settings in order to guarantee fair access for people from all socioeconomic backgrounds.

Fund for start-up

Prof Thillai Rajan A, IIT Madras is looking forward to a slew of booster measures in the 2024 budget that bring back the winds to the sails of the start-up ecosystem.

Reiterating that there have been very few comparable initiatives in independent India that have galvanised so many departments and ministries of the Indian government, the IIT Madras professor said: “More than ₹20,00,000 crore has been invested in start-ups in the country. However, since the high peak of 2021, the number of start-ups created has been gradually declining. As somebody who is keenly following the contribution of the start-ups, I look forward to a slew of booster measures in this Budget that brings back the winds to the sails of the Start-up ecosystem.”