Budget gives higher education, skill development a big push

Reforms in higher education and boosting the government’s skill agenda have been the spotlight in this year’s Budget. Apart from setting up a Higher Education Financing Agency (HEFA) with an initial capital base of ₹1,000 crore, another positive that has been welcomed widely is the allocation of ₹1,700 crore to set up 1,500 multi-skill training institutes across the country which will basically be the new generation ITIs set up in PPP mode.

Read: Union Budget 2016-17 This time for Bharat

Here are some of the reactions to the Budget proposals from education sector that followed after the announcements are listed here:

"The proposed higher education financing agency will be a springboard for academia. With banks finding it difficult to manage the NPAs from the education loans, setting up a dedicated agency will give higher learning the thrust needed today and will benefit both students and the financing system.

The announcement that enabling regulatory architecture will be provided to 10 public and 10 private institutions to emerge as world-class teaching institutions should be acclaimed for two key reasons. First, it seeks to recognise the role of the private sector — not all world-class institutions that emerge from India need to be publicly funded.

Second, it stresses the importance of teaching. Often, in most higher education institutions, research gets top priority. However, only a fraction of students in the higher education system take up research. For the vast majority of students who prepare for careers in industry, inspired teaching would be invaluable."

— Thillai Rajan, Associate Professor, Dept of Management Studies, Indian Institute of Technology Madras (IITM)

"The setting-up of a finance agency could play a key role in tackling the issue of lack of funds that leads to a large number of students opting out of higher education. The move will contribute to a healthier gross enrolment ratio (GER) at the higher-ed level. The Budget, however, lacks concrete measures towards making the education system more learner-centric. The focus should be on imparting faculty training and building a robust assessment framework, more so at the school level.

The complexity of the Indian educational challenge calls for greater involvement of private sector capital and expertise. However, the Budget is silent on measures to further boost private sector investment in the education."

— Deepak Mehrotra, Managing Director, Pearson India

"On the face of it, the emphasis on higher education appears more rhetoric than reality. The statement of providing an enabling regulatory architecture to 10 public and 10 private institution to emerge world class means little till further details are spelt out. Given that this initiative was presented in an annual budget, it would have sounded more credible with some thoughts on the type of institutes (Scientific, Humanities, Management etc) those are being thought about and any timeframe that the government have in mind to get this through.

The HEFA, with an initial capital base of ₹,1000 crore, supplemented funds from the market and CSR funds, is a good concept. However, it is not at all clear which “top institutions” would be lucky to get their infrastructure serviced through these funds. Moreover, what are the criterion to define a top institution? Why should the market or corporations lend to these institutes unless they cater to some of their requirements? Would the borrowings by HEFA be guaranteed by the Government? Again, these are questions that one awaits further clarity on.

At the same time, limiting the benefit of deduction on research to corporates to 150 per cent in FY17, and subsequently down to 100 per cent by FY20, does not bode well in terms of encouraging innovation.

Amidst all these, the proposal to establish the digital depository for academic certificates stands out as innovative as it will certainly save a lot of inconvenience, both to students and employers in proving and accepting the authenticity of certificates."

— Manas Paul, Professor (EEP) Institute of Management Technology Ghaziabad

"We are delighted that the government has taken a decision to empower higher educational institutions to help them become world-class teaching and research institutions. Top-tier, privately managed management education institutions have been adversely impacted in recent times as a consequence of the prevailing, differentiated, non-level playing ground policy framework vis-à-vis government-funded IIMs.

We also welcome the decision to set up a Higher Education Financing Agency (HEFA) with an initial capital base of ₹1,000 crore. Currently, top-tier, privately managed management educations have to finance all capital expenditure, including campus expansion, classroom upgradation, etc., through internal accruals. On the other hand, government-funded IIMs are extended financial support by the government for various capital expenditure initiatives."

— Fr. E. Abraham S.J., Director, XLRI- Xavier School of Management Jamshedpur

"The budget seems promising for India’s youth – whether it is about quality of education, focus on skill development, improving teaching and research outcomes, emphasis on job creation or creating an ease of business to promote entrepreneurship. It is good that the Public Private Partnership model has worked reasonably well for the skills ecosystem which needs to be given more encouragement.

The National Skill Assessment & Certification Board with both government and industry representation, will be instrumental in ensuring quality assessment of the skilled workforce that gets trained."

— S. Ramadorai, Chairman, National Skill Development Agency (NSDA) and National Skill Development Corporation (NSDC)

"The creation of multi-skill institutes will go a long way in skilling the people in the sectors that are urgently required by the industry. This coupled with the focus on entrepreneurship and tax benefits for startups will give the much required boost to job creation in the country."

— Manish Mohan, Executive Vice-President, Skills Development Network, Wadhwani Foundation

"Extending tax relief for hiring unemployed with salaries below Rs. 25,000 to the corporate would provide a boost to job creation. While the proposed digital depository for school leaving certificate is a welcome step, a central mechanism to validate skilled population would have been music to many ears."

— Ninad Karpe, MD and CEO, Aptech

"The visionary direction towards Start up India – specially women entrepreneurs will help India move from a country of job seekers to a land of job creators, vital for sustainable economic growth and development."

— Ambarish Datta –MD & CEO BSE Institute Ltd and Director of NSDC (National Skill Development Council)

"FM’s proposal to spread digital literacy in rural India and digitization at various levels in school and high quality world class education finds resonance with Cambridge University Press’s objective to make learner’s future ready and globally compatible. With Education and Job creation as one of the key pillars to transform India and the continued focus on ‘Make in India’, the budget augurs well for the sector."

— Ratnesh Kumar Jha, MD, Cambridge University Press - South Asia

"The success of HEFA will lie in effective implementation and the actual reaching of the funds where they are meant to reach. I would submit that a citizens’ committee should be formed to audit all such expenditure to first evaluate if in fact the money allotted is being spent in the right space where it is meant to be and secondly if it is being spent in an effective manner. Without focusing on the implementation aspect of any budgetary spend, the initiative may lose its effectiveness."

— Naveen Chopra, Founder and Chairman, The Chopras

"While the government’s announcement to open 62 new Navodaya Vidyalayas is fantastic, there could have been a scheme to launch 100 times more schools — that is, 6200 schools — which is what the country requires. All of these don’t need to come from the government sector; the private sector should be allowed to contribute as well."

— Shantanu Prakash, CMD Educomp Solutions

"The focus on entrepreneurship, skilling and financing for higher education is greatly welcome. This needs to be supported by a national movement to enable learning outcomes and improve the quality of what we do. Instead of looking towards the government, there is an urgent need for citizens to join hands to raise the game and take responsibility to build the India of our dreams."

— Anil Sachdev, Founder & CEO, School of Inspired Leadership Gurgaon