Budget 2021: Digitalisation of education sector can help India become 'Atmanirbhar'
- IBEF
- February 1, 2021
The Union Budget 2021 to be announced on February 1 will be the first ever paperless budget - a successful illustration of the strong implementation of digitalisation in the past year.
In particular, 2019 appeared to be a game-changer for the education industry, with online learning replacing conventional classroom teaching, giving a major boost to education technology.
The government allocated Rs. 99,300 crore (US$ 13.62 billion) to the education sector in the Union Budget 2020, with an increased focus on skills building for young people, higher education and the implementation of the New Education Policy (NEP). Public expenditure on education, however, is only 4.6% of GDP, lower than most developed nations.
Budget 2021
In order to promote online education and reduce the digital learning gap between urban and rural youth, Budget 2021 needs to allocate more funds to strengthen the digital infrastructure. In addition, specifics are anticipated from the upcoming budget on the introduction of the NEP, public-private partnerships, policies to promote ed-tech enterprises, as well as tax relief for the sector.
New Education Policy (NEP) and digitalisation of the education sector
The New Education Strategy introduced last year, anticipated an increase in government education spending from 10% to 20% by 2030, with an emphasis on supporting higher education, bridging the gender, social and economic gap. Guidelines for enforcing this inclusive strategy, in particular for allocating funds to different areas, such as K12, STEM education, higher educational institutions, and bridging the digital gap between Tier 1, 2 and 3 cities through implementation of technology in the education sector, are awaited from Budget 2021.
It is expected that through massive investments in ed-tech, NEP would further enhance integrated, experiential and immersive learning while enhancing vocational training, non-academic education and improving skill growth to increase India's employability ratio.
India will actually participate in the 2022 PISA Test and, for the second time after 2009, will be part of the evaluation, ranking 72 out of 73 countries. Improving the ranking will significantly increase India's confidence among OECD members and help it demonstrate its objective of achieving an efficient and equitable education system that is at par with global standards.
Incentivisation of ed-tech
A recent study by KPMG predicted that India's online education market would hit US$ 1.96 billion in 2021. In terms of integrated, low-cost Internet and accessible hardware devices and software, the Union Budget 2021 should focus more on developing digital infrastructure and last-mile connectivity to allow digital learning access to a greater segment of the population.
Incentivizing ed-tech is essential, given its key role in shaping youth around the country responsive to online education, as well as numerous course offerings for professionals who want to expand their current skill sets.
It is expected that Artificial Intelligence (AI) capabilities will enable more than 47% of learning management tools by 2024.
Offerings such as classroom enhancement, blended learning, 3D, DIY kits, AI, experiential and interactive learning, the learning management resources provided by ed-tech companies provide an unrivalled experience.
Therefore, in order to put India on par with global education standards, government support for small, mid-sized and ed-tech startups needs to be boosted.
Collaboration between the ed-tech industry and leading education institutions with reduced GST rates on online education and a comprehensive information security system must also be facilitated by the government.
Teacher training is another central focus area of ed-tech. to meet the increasing demand for digital educators, NISHTHA, an initiative to train over 4.2 million teachers across the world, is on the path to achieve its target. Considering the COVID-19 pandemic, Budget 2021 is expected to allocate increased funds to teacher training, digital infrastructure to enable online examination and skill development initiative at mass level.
PPP collaboration and policy support
In terms of infrastructural allocations, there is a greater impetus for public-private sector collaboration; both physical and digital infrastructure are critical. In addition, support for the digitisation of the course curriculum for government-aided and private institutions is crucial.
Favourable strategies for higher education and technical schools would also make it possible for young people to be more qualified. More government-funded scholarships, without any distinction between public and private educational institutions, are also significant.
In addition, tax relief from the 18%-5% cut in GST for online education and discounts on education loans for both formal and skill-based learning would contribute to making online education more affordable. Corporations should also be granted tax deductions for spending on online training for staff.
In making India' Atmanirbhar,' education and training has an instrumental role to play, and as COVID-19 has shown, digitalization of the education sector is the need for the hour. It will also help attract FDI in the education sector to make wide-scale digital education a reality, thus enabling India to become an attractive higher education destination on a par with global standards.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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