Yesterday, Finance Minister Nirmala Sitharaman presented Union Budget 2021. There was a multitude of initiatives that was announced by the Finance Minister during the budget presentation and most of them focus on reviving the Indian economy which was severely affected by the pandemic. Apart from just focusing on the industry segments, the education sector is also set to get a boost of Rs. 93, 224 crores which will help to improve the various facets of education in the country. Looking further into the total amount allocated for education, Rs. 54,813.66 crore was given for school education while the higher education spectrum was allocated Rs. 38,350.65 crore.

This announcement was welcomed with mixed responses from various stakeholders owing to the fact that there was a 6.1 percent decline in the amount allocated to the education sector of the country when compared to last year’s budget. With that said, there were some interesting and pioneering projects that were presented during the budget including the creation of a formal umbrella structure in nine cities across the country that have various research institutions, universities, and colleges which are supported by the Indian government. This is aimed at increasing the synergy of these institutions which can lead to multiple collaborations and co-development as well as research in various areas. The finance minister also stated that there will be a separate Glue Grant which will be set aside solely for this.

Prominent personalities from the education fraternity of the country have been vocal about their opinion on the budget from the get-go and how much importance was given to the education sector of the country. Some of those opinions are mentioned below.

Mr. Sumesh Nair, Co-founder & CEO, Board Infinity – “It is a welcome move to train engineers, but we are forgetting that arts, science, and commerce background students forms the majority of higher education bucket (close to 70% of entire intake). Most programs are unable to cater to these majority population, skilling should be inclusive and not just be focused on engineers. New age digital skills can also be learned by arts, science, and commerce background students. The learning curve is slightly steep, but it is very much possible and we have seen people picking it up. I would like to see for inclusive points in apprenticeship training that can cover a broader spectrum of people and not just niches. Probably it is because the narrative is owned by engineer employability, but I request to government to make this inclusive for all types of higher education students."

Dr Mona Lisa Bal, Chairperson, KiiT International School -“Budget 2021-22 was significant as it was expected to revive the economy after the COVID-19 crisis. Education for All was one of the prime focal areas of the Budget and overall, the announcements made for the sector were positive.  The industry was expecting allocations on the implementation of NEP 2020 which has been met to an extent. Emphasis on strengthening the quality of education in schools will benefit students by cementing their primary education and promote growth and knowledge. Setting up of new Sainik schools and Eklavya model residential schools, especially in the remotest parts of the country will further bolster educational development. Upskilling of the youth has become extremely vital in the present scenario. Our youth are our strength and streamlining skill development for them will catalyse a better tomorrow for India. International collaboration on research and development is also a welcome move because the pandemic has made it clear that innovation is the way of the future. Setting up of the National Digital Educational Architecture (NDEAR) Development is a firm steppingstone towards a digital transformation to take the country to newer heights.  Upskilling of teachers and training under National Initiative for School Heads and Teachers for Holistic Advancement (NISTHA) will be beneficial to the students and the sector at large. Focus on holistic education, moving away from rote learning to strengthen analytical, conceptual skills of students will foster critical thinking among them which will help in their overall development and learning. It is good to see the Budget focus on the needs of the special children, especially the ones with hearing impairment through standardization of Indian Sign language across the country and development of National and State Curriculum materials for use.”

Prof. Amiya Kumar Sahu, Associate Professor (Finance), Goa Institute of Management- "The Finance Minister presented a forward-looking budget that would boost economic growth and investors’ confidence. I am particularly impressed with the resource allocations on Healthcare, Education, and Infrastructure. The fiscal deficit targets look pessimistic. The government would do better as economic activities normalize. The GST collections figures for January 2021 is a good signal. I expected excise duty cuts in petrol and diesel. The capital market has reacted positively, but the realities will unfold only tomorrow and further during the week. The focus of infra-push on election-bound states looks to be a big-promise. My rating is 7/10."

Chef Niklesh Sharma, Founder APCA- "We are pleased to see the vocational & skill-based courses coming to the forefront in our Finance Minister’s speech today. They have for way too long served in the sidelines of the Indian education regime and with this push, we are hopeful that we will be able to produce better professionals and overall an impactful educational culture in the country. The introduction of the New Education Policy (NEP) has also served us a propellant for the age old educational infrastructure in India and we are hopeful that the Government will keep on bringing necessary amendments in the future as well”.

This year’s budget has taken into account some of the challenges faced by the Indian education sector and presents opportunities that can be turned into strengths to make our nation Atmanirbhar, as India will have the largest working age population in the world by 2030

Ms. Preethaa Ganesh, Vice President, Vels Group of Institutions, Chennai- “We acknowledge the initiative taken by the central government to make India as a preferred destination for higher education. Towards the same, the proposal of Ind-SAT comes in as a boon as this will help in boosting the education scenario in India by bringing in more foreign candidates. Enhancing online education by introducing a full-fledged education programmes will majorly benefit the students of deprived section of the society. Increase in apprenticeship embedded degree/diploma courses by March 2021 will result in providing more internship opportunities to fresh engineers thereby creating a wholesome job environment. In addition to this, we feel that the sum allocated for skill development and training of teachers will give us room to create a better work environment and deliver higher quality of education.”

Mr. Rishab Mehta, CEO & Founder, GrayQuest- “This year’s Union Budget was in the spirit of "do no harm" in terms of any adverse policies being implemented. Broadly, the various decisions laid out in this year's budget are more "incremental" rather than "transformational" in nature. Accessibility and affordability of education across the weaker economic strata of society has been a perennial challenge in our country, especially this year with the disparity increasing manifold due to lack of online education infrastructure both at school and student level. This year’s budget has indicated a good intention of progress in addressing this gap. Government’s decision to strengthen over 15,000 schools under NEP, set up 100 new Sainik Schools, raise allocation for 'Eklavya' schools in hilly areas etc. will provide a fillip to quality education. This budget has also laid down several measures which are further boosting the cause of both startups and especially fintech startups. Once again, we believe the steps taken relating to startups, although incremental in nature, point towards a long-term policy goal of the government to signficantly boost the sector via favourable policies, albeit with incremental steps taken every year instead of a big-bang transformational reform. The decision to extend capital gains tax exemption by another year is another step in that respect. Specific to fintech, the setting up a world-class Fintech hub at Gift city will add impetus and government recognition to the growing relevance of Fintech companies in India, which is essential considering that it is a regulated sector.”

Dr. Bijaya Kumar Sahoo, Advisor to The Odisha Adarsha Vidyalaya Sangathan (Rank of Minister of State), Govt. of Odisha and Founder at SAI International Education Group- “The Union Budget 2021 has touched all the sectors and rests on six pillars, i.e. Health & Well-being, Inclusive Development Human Capital, Innovation and R&D, Physical & Financial capital and infrastructure, Minimum government and maximum governance. I am happy that the Union Budget 2021 has focused on qualitative strengthening of over 15,000 Schools across India under National Education Policy 2020. It is a great move by the Finance Minister. An 'umbrella' structure will be created for central higher education in various cities.  Legislation to set up the Higher Education Commission will be introduced soon. Last year, the government allocated Rs 99,300 crore for the education sector. To further the National Education Policy under the reinvigorating human capital under the Aatmanirbhar Bharat mission the minister said a central university will also be established in Leh for accessible higher education at Ladakh. 100 new Sainik schools to be set up in partnership with NGOs and private schools, 750 Eklavya schools will be set up in tribal areas, Increase in the expenditure cost for tribal schools. It will a major boost for rural education.  Government proposes 3000 crore to be sanctioned towards upskilling and 30000 crore for R&D over 5 years. The budget allocation in Padhna Likhna Abhiyan has been increased from Rs. 95.25 cr (RE 2020-21) to Rs. 250 cr in BE 2021-22 (an increase of Rs. 154.75 cr) i.e. by 162.47% which will further lead to infrastructural (both digital and non-digital) enhancement. India’s focus on R&D with National Research Foundation an allocation of 50,000 crores will certainly help India in developing an urban India. There has been a focus on reviving the MSME Sector and making inclusive development for an aspirational India the product link incentive in 13 sectors with focus on agriculture infrastructure and 5 fishing harbours will make quantitative and improvement in these sectors. The Union Budget 2021 has emphasized on health and wellbeing in which allocation has been kept in upgrading health infrastructure of the country, with an outlay of additional 64000 crores. For migrant labour and GIG workers a portal will be developed to track health, housing, skill and insurance along with social security through ESIC is going to benefit 15 crore workers across India. The whooping Fiscal Deficit expected at 9.5% of GDP is to be contained at 6.8% in 2021-2022 which will be brought down to 4.5% by 2025-2026. Though a welcome measure, its implementation will be full of challenges. The 15^th Finance Commission Recommendation of States sharing increased 41% will make each state stronger; however, it shall depend on the FRBM consolidation. Government has reposed more faith on the taxpayer by reducing reopening cases to 3 yrs making IT-AT faceless and exempting pensioner senior citizens from filing tax returns, it will certainly give relief to them. The FDI increase in insurance sector commitment for national Infrastructure pipeline, revising small company definition from 50 lacs to 2 crores and allowing One person company to be floated will help capital build up for the nation. Looking at the positive budget, the Sensex has already jumped over 2300 points. It also emphasizes the most talked about Farmers policy and their hike in credit limit. There is also a boost to the non-conventional energy sector. As expected, the Finance Minister announced Rs 35,000 crore for Covid-19 vaccines but no relief to the taxpayers who have faced the brunt for the past one year. Though, it’s welcoming to see that the tedious income tax return forms will be further simplified”

Prof Mahadeo Jaiswal, Director, IIM Sambalpur- “Since the last Budget, the size of India’s economy has reduced from Rs 2.24 lakh crore nominal GDP to Rs 1.94 lakh crore. There has been lower-than-budgeted revenue growth and higher expenditure to tackle the negative impact of the pandemic. The very fact that Hon’ble Finance Minister delivered her budget speech with the help of a 'Made in India' tab to deliver India’s first paperless Budget address, accentuates the move from traditional to modern, yet keeping the essence alive. Overall Budget 2021 has been constructive considering the economy is in the revival mode. After a year of economic contraction, the Union Budget rightly focused on capital expenditure which was much needed. It needed to be more investment oriented rather than an income generating one. Laying emphasis on development of infrastructure across the country was essential to contribute to the growth and create employment. Boosting the healthcare infrastructure is a welcome move as there was a yawning gap and a 130% jump in provision for the sector bears testimony to the fact that health of the nation is a priority. Privatisation of the public sector banks will increase efficiency in the banking sector and help in funds reducing NPAs. The MSME sector also required heightened allocations as this sector can help India reach its full potential. I am glad Hon’ble Finance Minister doubled the allocation to this sector. Tax holidays and incentives given to start-ups will also bolster progress for the country and reinvigorate vocal for local. Focus on the manufacturing, automobile sector was much needed because India’s core strength lies in these sectors. Automobile sector has been reeling under low demand and INR 5.54 trillion infusion in developing infrastructure around the country, which is expected to boost the demand for heavy and medium commercial vehicles is a welcome move. Overall Budget 2021-22 has the much needed financial impetus to augment India in becoming a $5 Trillion-dollar economy. From Education standpoint, as was predicted, this Budget has also stressed upon the implementation of NEP 2020 with the setting up of new educational institutions across the country, in the remote corners and focusing on strengthening the quality of education in existing schools. The setting up of the Higher Education Commission will also add a structural reform and streamline the higher education scenario of the country. Allocation of funds towards upskilling of the youth was an imperative. As Hon’ble Finance Minister rightly mentioned, channelization of the skill of our youth is of utmost importance which can fillip our economic development. The learning that we received from the pandemic has also been properly implemented by earmarking funds to support the research ecosystem of our country. This can create more job opportunities and reduce dependency on other countries. Setting up of the National Digital Educational Architecture (NDEAR) is a positive step. However, some more stress had to put on the development of digital infrastructure of the country for the implementation of NEP 2020 and mitigating the challenges institutions are facing in remote learning.  A substantial step towards lessening the digital gap that exists would have helped make the education sector become future ready”.

Dr. Suresh Ramanathan, Dean, Great Lakes Institute of Management, Chennai- The Honourable Finance Minister, Nirmala Sitharaman has rightly included the education and skills sector as an integral part of the Aspirational India plans. We are thrilled to see the support given by the government to boost the country’s education system, recognizing the need for greater inflow of both funds and talented faculty along with the importance of innovation and better lab infrastructure as a means to improve overall standards.

As a leading management institute, Great Lakes is proud to charter a course that heavily emphasizes knowledge creation as a means to deliver highly relevant and contemporary education to its students. We believe that this will eventually and invariably lead aspirational India towards better standards of living and greater employment opportunities. The allocation of Rs. 50,000 crores in the budget towards the National Research Foundation is a step in the right direction. It will put India firmly on the path to attaining global standards in knowledge creation.

Shri Rahul V Karad, the Visionary Educationist, and the Managing Trustee & Executive President, MAEER’s MIT Group of Institutions & Executive President, MIT World Peace University (MIT-WPU)- “I welcome the budget announced for this year by our Finance Minister Nirmala Sitharaman. The budget aims at the overall economical revival with a major thrust on infrastructure, healthcare and agriculture along with other sectors. The decision to introduce IND-SAT to invite Asian and African students to study, will make India the preferred destination for education. It will also introduce more diversity amongst the student population. Introducing FDIs in the education sector will further help ramp up this sector and help meet global standards. The young engineers getting the internship opportunity for a period of 1 year by the Urban Local Bodies of India will further build a greater industry connect for our engineering graduates. As a university that is proactively bridging the industry-academia gaps, this is a welcome change. What is also path-breaking is the government’s decision to introduce degree-level full-fledged online education programs by the top 100 institutions listed in the NIRF. This will make good quality education accessible to aspiring students especially in the rural regions of our country where there is a lack of education infrastructure. The idea of attaching medical institutes to a district hospital in the Public-Private Partnership (PPP) mode will address the future demand for doctors and healthcare professionals in our country and also provide them with a better exposure early in their careers. This year’s budget has taken into account some of the challenges faced by the Indian education sector and presents opportunities that can be turned into strengths to make our nation Atmanirbhar, as India will have the largest working age population in the world by 2030”.