As industry experts analyze the implications of these budgetary decisions, let us delve into their reactions and insights into the Union Budget 2024.
Union Budget 2024 receives mixed response from Management institutes
Union Budget 2024, announced by Finance Minister Nirmala Sitharaman, has sparked significant reactions across the management industry, especially concerning the allocation of funds to the Indian Institutes of Management (IIMs). Allocating a mere INR 212.21 Crore to IIMs, a stark reduction from previous years, reflects a continued trend of reduced financial support for these premier institutions. Last year saw a halving of their budget allocation, and this year's further decrease highlights ongoing challenges in funding for higher education.
According to the budget allocations, this year, IIMs’ Gross Budgetary Support (GBS) is INR 12 crore compared to last year’s INR 15.17 crore. The interest under the HEFA Loan has also gone up to INR 60 crore. This was INR 29.79 crore in the year 2022-23.
Alongside this, the overall budgetary allocation for the education ministry has seen a notable increase of INR 11,738.53 crore, with substantial sums directed towards other key departments. A total of over INR 1,24,638 crore has been allocated to the two departments of the education ministry, i.e. School Education and Higher Education. As industry experts analyze the implications of these budgetary decisions, let us delve into their reactions and insights into the Union Budget 2024.
Loan assistance making MBA accessible on a larger scale
"Management colleges across the country exude confidence in the Union Education Budget 2024, presented by the Union Finance Minister Nirmala Sitharaman, emphasizing the need for innovative and access-based education. This commitment is cemented for the future business leaders of our country because an absolute allocation of ?1.48 lakh crores has been made for education, employment, and skill development. The government has come forward with a scheme of providing loan assistance of up to ?10 lakh for higher education in a domestic institution, therefore making access to an MBA program easier and more accessible to a larger range of talent who dream of pursuing it. The most promising thing for MBA colleges is the introduction of a centrally funded scheme to train 20 lakh youth in five years in association with state governments and companies. This shall ensure that our students acquire industry-relevant skills to fill the gap between academia and professional practice. Apart from this, updating the 1,000 ITIs as per the need of the industry would further enhance the quality of management education" says Dr Srinivasan. K, Director, MBA ESG India.
" The stipend amounting to ?5,000 and a one-time allowance of ?6,000 that the students would get under the internship scheme will provide immense hands-on experience to them. This will come along, especially by encouraging companies to use their CSR funds for this initiative that would fan the creation of collaboration between MBA colleges and the corporate sector.
Overall, it makes India a global business and innovation hub by placing its students at the forefront in various industries," he further adds.
Allocations to build a strong support system for educational delivery
Dr. PR Sodani, President, of IIHMR University says, "As an institute devoted to nurturing innovation and excellence, we commend the government on this year's budget, demonstrating a strong commitment to strengthening education & skilling among youth. The significant investment in one thousand industry training institutes, and the provision of 1.48 lakh crore rupees for education, employment, and skilling will build a strong support system for educational delivery. The allocation of 10 lakh crore loans for higher education in domestic institutions and the revision in skilling loans up to 7.5 lakh will enhance the skillset of our students, and improve participation rate in educational institutes. Moreover, it is promising to see governments focus on providing internship opportunities to 1 crore youth in 500 top companies with a stipend of 5000 rupees giving them market exposure. Such initiatives are poised to elevate India to stand on par with its Western counterparts.”
Support for education loans up to ?10 lakhs is a game-changer!
Dr. Kokil, Dean - of Research & Outreach, at FIIB (Fortune Institute of International Business) shares, "This year’s budget announcements will be revolutionizing the education sector. The Prime Minister’s package, with its massive ?2 lakh crore outlay, shows a strong commitment to our youth. The plan to skill 20 lakh young people over the next five years is such a crucial step. It means more of our youth will have the skills they need to succeed in today’s job market. And the support for education loans up to ?10 lakhs? That’s a game-changer. It will make higher education accessible to so many more students, helping them to pursue their dreams without the heavy burden of financial constraints. Overall, these initiatives are a huge leap towards a more inclusive and dynamic future for our country."
Internships for 1 crore youth to provide invaluable hands-on experience and practical skills
Dr Prabhu Aggarwal, Dean BSM (Badruka School of Management) says, "The Union Budget 2024 is a landmark initiative that promises to reshape the landscape of education and employment in our country. By prioritizing education, skills development, and internships, it addresses critical gaps in the current system. The introduction of financial support for higher education and direct benefit transfers is set to make quality education more inclusive. Additionally, the provision for internships for 1 crore youth in top companies will provide invaluable hands-on experience and practical skills. This initiative not only supports students financially with a monthly stipend of Rs 5,000 but also equips them with the experience needed for successful careers. Ensuring that students have access to both world-class education and real-world training is essential for their future success."
Benefits and initiatives introduced to make education accessible for youth
Professor Ram Kumar Kakani, Director of IIM Raipur, says, "To support our youth who haven't been eligible for any benefits under government schemes and policies, Finance Minister Nirmala Sitharaman announced several initiatives. For example, loans of up to Rs 10 lakh for higher education in the domestic sector, e-vouchers directly to 1 lakh students, and over the next five years, 500 top companies will provide internship opportunities with a monthly allowance of Rs 5,000, giving our young people valuable work experience. By integrating financial support for education, robust internship opportunities, and a strong focus on skill development, these measures not only empower our youth but also lay a solid foundation for sustainable growth and innovation. This holistic approach ensures that every segment of our society—from aspiring students to new startups—can contribute to and benefit from India's evolving economic landscape.”
Initiatives to bridge the gap between education and employment
Prof. Mahadeo Jaiswal, Director, IIM Sambalpur, says, “This year, the Education Ministry’s budget allocation has increased by 6.8 percent, which signifies the government’s commitment to advancing the education sector. Through this budget, the Finance Minister has outlined a comprehensive and forward-looking plan that emphasizes the importance of education, employment, and skill development by allocating an impressive Rs 1.48 lakh crore for these crucial areas, which is indeed commendable. The provision of financial support for loans up to Rs 10 lakh through E-vouchers for students aiming for higher education in domestic institutions is a significant step towards making higher education more accessible for all. This initiative will undoubtedly empower many aspiring students to pursue their academic goals without the burden of financial constraints and increase job opportunities. Additionally, the introduction of a new centrally-sponsored scheme for skilling, in collaboration with state governments and industries, is another praiseworthy move. Skilling 20 lakh youth over the next five years will create a robust workforce ready to meet the evolving needs of the industry. The upgrade of 1000 ITIs and the alignment of course content to industry requirements will further enhance the employability of our youth. Furthermore, the government’s internship scheme, providing internships to one crore youth with a stipend and assistance, will offer invaluable hands-on experience and financial support. This initiative, supported by CSR funds, will bridge the gap between education and employment, ensuring that our young talent is work-ready.”
Allocation of ?1.48 lakh crore for education, employment, and skilling, an encouraging step
Dr. Prabhat Pankaj, Director, Jaipuria Institute of Management, Jaipur says, " The announcement to offer internship opportunities to 1 crore students at 500 top companies over the next five years is a welcome move to foster industry-academia collaboration and produce industry-ready professionals. The decision will facilitate B Schools to forge ties with industry leaders, design a more targeted curriculum, and align academic programs with existing industry trends and demands. Furthermore, the allocation of ? 1.48 lakh crore for education, employment, and skilling, is an encouraging step. However, we expect further financial assistance from the Union Government to meet the objectives of NEP 2020 and nurture future talent in the digital era. Overall, the Union Budget 2024 embodies India's vision of becoming a Vishwaguru by promoting a proficient workforce, driving innovation, and fostering economic growth."
Given the global gloom, Bharat’s budget sows seeds of bloom
Professor V.P Singh, Program Director – PGDM, Professor of Managerial Economics and Statistics, Great Lakes Institute of Management, Gurgaon, adds, "Given the global gloom, Bharat’s budget sows seeds of bloom. After the Global Financial Crisis of 2008, China and India were seen as engines of global growth. Of late Chinese engine seems to be sputtering into sluggish growth. The FM seems to be on track to exploit the ‘China plus one’ sentiments of the world. Momentum in Capex has been maintained through an 11% increase that paves the path to enable GDP to grow faster and stimulate private investment. All engines of growth have been triggered through the budget. Relaxation on standard deduction and simplification of the Income Tax Act 1961 will for sure boost personal consumption and private investment. Lowering customs duty on a variety of products will take care of the concern related to inverted duties. The education sector has received a 31% increase in allocation which is more than welcome. Skilling is the single most important task that can enhance the much-required productivity as well as income generation. Agriculture, capex, skilling, SMSE, Women in development, and the middle class have been the flavor of this budget. The GDP growth targeted by the Economic Survey for Viksit Bharat can be achieved through this budget. The fiscal deficit glide path has been maintained, which shows that the economy is growing in a disciplined and responsible manner. Interest costs will stay low. Inflation is softening, the fiscal deficit is in control, and the stage is set to take off to a higher growth trajectory."
New centrally sponsored scheme for skilling will support our 20 Lakh youth in upskilling
Dr. Pankaj Priya, Deputy Director and Dean-Academics at BIMTECH said, "Since 2014, the central government's focus on skilling has remained consistent, as highlighted in the present budget. The prime Minister's package for skilling envisages a collaboration with all state governments as well as industry. This new centrally sponsored scheme for skilling will support our 20 Lakh youth in upskilling over the next five years. It will translate into more jobs for our youth in rural as well as urban areas. The above investment, along with the newly announced scheme targeting 4.1 crore youth will propel India towards its goal of becoming a developed nation by 2047. The Finance Minister’s far-sighted vision to combine the power of youth and technology in the Viksit Bharat Budget is commendable.”
The budget reflects the government's commitment to nurturing the nation's future
"Modi 3.0’s budget is a transformative step towards enhancing education. I am glad to see Budget 2024‘s focus on youth employment and skilling opportunities in India. The internship scheme for 1 crore youths in over 500 firms is a welcome step from the government. It will help students acquire the necessary skills for obtaining jobs and gain hands-on experience, making them industry-ready. We all know that this has been a long-term problem, with a gap between the skills that graduate students have and what the modern workforce requires. An investment of Rs 1.48 lakh crore in the education sector reflects the government’s strong commitment to nurturing the future of our nation. With employment being one of the nine priorities in this budget, this substantial allocation will empower students to pursue their desired careers," says Nidheesh Saxena, Senior Director of Admissions, Gitam Deemed to be University
