With the Union Budget 2025 around the corner, education industry leaders and experts are voicing their expectations for increased investment in infrastructure, digital learning, skill development, and tax reliefs. Aligning with the National Education Policy (NEP) 2020 and India’s vision of becoming a global knowledge hub, stakeholders are hopeful for substantial allocations and policy reforms that will bridge the digital divide and enhance learning outcomes across socio-economic strata.
Boosting School Infrastructure and Digital Inclusion
Tr. Chaitanya Dev Singh, National President of Round Table India, emphasized the need for a greater budgetary allocation toward school infrastructure development, particularly at the grassroots level. “In the Union Budget 2024, the allocation for Samagra Shiksha Abhiyan (SSA) was ₹37,500 crores, and the Department of School Education was allocated ₹73,008 crores. These investments have already begun to enhance the quality of education by offering students supportive learning environments, access to modern educational tools, and an overall push to improve the basic infrastructure.”
He further highlighted that an expanded allocation in 2025 would help expedite technology integration and digital education, ensuring equal opportunities for students irrespective of their socio-economic background. “A higher budget allocation towards infrastructure and technology adoption will also facilitate the accomplishment of the objectives of NEP 2020 and position India as the Vishwa Guru of the world.”
GST Reforms and Public-Private Partnerships
Echoing similar sentiments, Mr. Nipun Goenka, Managing Director of GD Goenka Group, called for a substantial increase in the allocation for the education sector. “Reducing or eliminating GST on educational services and digital learning tools is another key demand. The move would make education more affordable, ensuring quality education is accessible to students from diverse socio-economic backgrounds.”
He also stressed the importance of Public-Private Partnerships (PPP) to bridge infrastructure gaps. “To achieve the objectives laid out in the National Education Policy (NEP), the budget is expected to prioritize expanding access to education in underserved regions, enhancing digital infrastructure, and advancing research in educational technology and pedagogy.”
Addressing Research Funding and Financial Reforms
CA Bikram Agarwal, CFO of Seth Anandram Jaipuria Group of Educational Institutions, emphasized the need for increased budgetary allocation to reach the ideal of 6% of GDP. “There is an expectation for the budget to support the expansion of digital learning platforms and hybrid learning models, to provide flexibility to students and make education more accessible.”
He also pointed out a crucial financial challenge: “The services of educational institutions are exempt from GST, but whenever they procure something or avail services from a vendor, they are required to pay GST to the service provider, except for some services. The reverse charge mechanism is also applicable on educational institutions under the GST laws, which creates numerous legal requirements on institutions. The government should address this issue and provide relief to educational institutions for compliance with GST laws.”
Bridging the Digital Divide and Strengthening Vocational Training
Mr. Kunal Vasudeva, Co-founder & Managing Director of the Indian School of Hospitality, expects the budget to prioritize modernization and inclusivity in education. “The digital divide has widened post-pandemic, especially in rural and underserved areas. The government will likely allocate substantial resources to bridge this gap by improving internet connectivity, providing devices, and investing in digital tools for schools and colleges. Expanding access to platforms like DIKSHA and strengthening the digital learning ecosystem will be critical.”
He also highlighted the significance of skill development. “Programs designed to enhance employability for youth, particularly in Tier-2 and Tier-3 cities, may see increased funding. This aligns with India’s push toward industrial growth, especially in high-demand sectors like IT, hospitality, and green energy.”
Enhancing Quality and Access in Higher Education
Dr. Prabhat Pankaj, Economist and Director at Jaipuria Institute of Management, Jaipur, emphasized the need for both qualitative and quantitative improvements in education. “On the quality side, filling the service delivery gap, fixing accountability, and improving the overall teaching and learning ecosystem for better outcomes are imperative. On the quantity side, improving the gross enrollment ratio, higher allocation of funding, scholarships for increasing STEM enrolment (especially for girls), and teacher training are highly desirable.”
He also pointed out the role of the private sector. “Unfortunately, private sector institutions, particularly in higher education, are still deprived of research grants from government bodies such as ICSSR and UGC. This is unfair, given the huge contributions of the private sector in education. I hope some window will be opened in the 2025 budget.”
Investment in Research and Development
Ms. Preethi Rajeev Nair, Principal at Lancers Army School, stressed the importance of increasing public spending on education. “If India could increase public spending on education up to 6% of GDP, as per the Kothari Commission (1966), it would help meet the growing needs of digitalization, teacher training programs, sophisticated infrastructure, and overall improvement in education services.”
She further added, “Sectors like Research and Development are the backbones of a country’s growth. It is preferable to give equal emphasis to both elementary and higher education. If we could allocate at least 5.2% to 5.5% of GDP in the 2025-26 Budget, this could help develop human capital and boost social progress along with economic growth.”
Conclusion
As the education industry eagerly awaits the Union Budget 2025, key stakeholders are unified in their call for increased investments, tax reforms, research funding, and digital integration. With the NEP 2020 guiding the way, the budget has the potential to reshape India’s education landscape, making quality education more accessible and equipping students with the skills necessary for a competitive global economy. Whether the government meets these expectations remains to be seen, but the push for holistic and inclusive growth in education remains stronger than ever.
