Budget 2023: Indian edtech has proved its worth in the last two years when practically, offline counterparts and their learning mechanisms were brought to a standstill. (Representational Image)
Union Budget 2023: Edtech startups are expanding their reach and capabilities and are expecting several measures from the annual budget.
union budget 2023: The last few years have seen a growing trend in the Indian edtech space. Demand for new skills in a competitive market and ease of learning from anywhere and anytime are some of the primary factors that have fueled this industry.
According to a 2021 report by RBSA Advisors, the Indian edtech industry is poised to reach a size of $30 billion over the next ten years. With this increase in market size and expansion of its reach in the country, the industry is optimistic about the upcoming Union Budget and looks forward to announcements by Finance Minister Nirmala Sitharaman.
Leading players are betting on the youth of the country, who are the drivers of digital transformation in India.
Great Learning founder and CEO Mohan Lakhmaraju said that equipping a large segment of the youth with industry-relevant skills is a surefire way to drive India’s economic growth.
“I believe that the need of the hour is to expand opportunities for India’s youth with easy access to affordable higher education, providing them with multiple opportunities to develop cutting-edge skills,” he said.
Mayank Kumar, Co-Founder and MD, UpGrad, feels the same way India It has one of the largest youth populations in the world and is still not considered to be the largest efficient economy.
“The biggest development hurdle here is the high interest rate on lifelong education which makes it an expensive proposition for the working class and prevents them from pursuing higher education or any kind of career development services,” said Kumar.
He said that legitimate tax benefits should be introduced to further accelerate skill development within the country. A robust framework to reduce the cost of higher education and grant applicants with higher exemptions and deductions in tax calculations will make upskilling a mainstream phenomenon.
Indian edtech has proved its worth in the last two years when practically, offline counterparts and their learning mechanisms were brought to a standstill.
“During this period, we saw these companies building capabilities that support a large number of student logins at a time and provide them with a seamless flow of education. Therefore, the government should relook at practices to promote greater collaboration between private edtech, technology service providers and offline universities to enhance access and impact. This will not only boost the acceptance of online learning, but will also educate stakeholders about the global opportunities for quality education and securing their careers in the future.”
Lakhmaraju also urged for allowing edtech companies to formally partner with universities to offer online and hybrid degree programs to achieve the Gross Enrollment Ratio targets set by the government.
Lakhmaraju said that the removal of GST on upskilling programs would make them more affordable to the people.
While companies in this sector make headlines from time to time for wrong reasons, the edtech sector is growing and regulating itself to address larger issues of learners and other stakeholders.
Last year, the Internet and Mobile Association of India (IAMAI) announced the formation of the India EdTech Consortium (IEC), which includes Great Learning, Byju’s, SimplyLearn, Unacademy, UpGrad, Vedantu and other leading edtech companies. It is envisaged for self-regulation of the industry.
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