Speaking in the upcoming Union Budget 2021, Anoop Gautam, Co-Founder & CEO of Thinker Coders said, “The budget allocation for the EdTech sectors should be increased by at least 7-8%, compared to the previous year.”
Full transcript:
Expectations from the Modi government regarding the EdTech sector through Budget 2021?
The pandemic has turned around the entire situation in the education sector. The transition from traditional learning to digital methods has helped in the growth of EdTech startups and existing companies.
We all have witnessed a significant surge in the usage of online courses, e-learning platforms, and language learning apps, coding for kids, skill development among the youth, and video conferencing tools for kids.
Though the EdTech sector was already gaining momentum over the past few years, the pandemic catalyzed the complete situation and brought it under the limelight. The budget allocation for the EdTech sectors should be increased by at least 7-8%, compared to the previous year.
Budget 2021 should favor the education sector. It will give the companies more thrust and motivation to develop innovative solutions and provide promising opportunities for establishing unicorn startups in the EdTech sector.
Digital Education: The New Normal in the EdTech sector
2020 saw how schools, colleges, and institutions were shut entirely, with students and teachers having no other option left than going digital. Even the school teachers and students demonstrated tremendous adaptability in adopting online learning methods.
This opens new horizons for EdTech startups. The introduction of NEP 2020 focuses on extracurricular and vocational learning with no separation from academic streams across the country.
According to NASSCOM, India’s ed-tech market expects to rise to $3.5bn by 2022, which will be a good sign for normalizing our country’s economic curve post-pandemic.
Tax cuts on the education sector:
The current taxation of 18% on the EdTech sector can be reduced to a lower percentage so that accessible quality digital education becomes a viable option for students coming from all sections of society.
The recent months have witnessed the maximum funding during this pandemic in the EdTech sector, which is also a direct result of increased awareness. The EdTech sector’s growth is going to be prominent in the months to come as students and teachers are accustomed to online learning tools.
Decreased taxation can eventually help the EdTech sector to expand horizontally and revolutionize the education system.
Expectations regarding the startup sector through Budget 2021?
The importance and impact of MSMEs on the Indian economy are well evident from the fact that the MSMEs contribute to providing employment, attracting foreign investments, and substantial contribution to the GDP of our country. India is home to around 63 million startups, as per the data from the MSME ministry.
Considering the reports from CII, MSMEs contribute approximately 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities, and 33.4% of India’s manufacturing output. They also employ around 120 million persons and contribute around 45% of the overall exports from India. The facts are convincing enough about the importance of MSMEs in supporting the GDP of India.
As the Union Budget 2021 will be released, the Modi government should focus on crucial points for MSMEs and startups. The taxation scheme for MSMEs should be revised and reduced, as it will provide more opportunities for MSMEs and startups to escalate more rapidly.
Besides, the loan approval process for MSMEs should be simplified, and collateral-free loans should be provided to startups and MSMEs. Many MSMEs remain unable to implement potential ideas due to the lack of initial funds or investments.
The year 2020 witnessed record-breaking funding in the EdTech domain. The EdTech sector should also be included under the benefits availing scheme for MSMEs, as it will provide a better ecosystem for startups to scale and promote quality education.
Why does the education budget be given more priority over other areas of concern to balance the mismanagement of COVID-19?
Since the pandemic’s dawn, we have witnessed everything from how economies have collapsed and are now recovering in the past one year. Be it the IT sector, Entertainment industry, FMCG industry, Automobile industry, and many other sectors are now gaining momentum as the vaccination program continues to escalate across the globe.
However, one sector that remains affected is the education sector. Though institutions have adopted online learning methods, the normalcy in the education sector is still very.
Despite the efforts being put by the private companies and the government, we still lack to find a solution for all the country students. E-learning is still a challenge for students coming from socio-economically weaker sections of society.
In the same light, in the Union Budget 2021, the education sector should be given more priority, so the effects of Covid-19 can be normalized. Underprivileged students shall be given more learning tools and opportunities to adapt to digital learning methods.
More robust platforms should be developed and curated for students to learn with ease and discipline. Moreover, skills like problem-solving, creativity and computational thinking are crucial for 21st-Century kids to face future adversities, just like the COVID-19 pandemic.
The regular classes of basic academia should be the point of focus for India’s government, as new-normalcy should be reflected in the education sector as well. Considering all the points, the budget scale should be inclined towards the education sector in the upcoming Union Budget 2021.