Union Budget 2025 live: What stakeholders are expecting from FM Nirmala Sitharaman for education sector

Prateek Maheshwari, Co-Founder of Physicswallah (PW) said, “Students that hail from Below Poverty Line (BPL) and Low Income Group (LIG) families should receive 100% GST exemption from all educational expenses, be it test-prep courses or job-oriented skill courses; as it takes away a significant portion of their net disposable income.”

“The 18% tax slab on higher or online education including skilling is extremely high. In other countries like Switzerland, education services are free irrespective of mode or type of education service while even in a country like China, it stands at 6 percent,” Maheshwari pointed out.

He further added, “On one hand, the government aims to increase the GER in higher education to 50 percent by 2035, and on the other such high tax rates create barriers to access that discourage learners. Another important step to creating affordable degrees is rationalisation in interest rates of student loans and interest-free loans for economically disadvantaged students.”

Devyani Jaipuria, Pro- Vice Chairperson at DPS International Gurugram, DPS Sector 45 Gurugram & DPS Jaipur said, “Given the current economic climate and the urgent need for educational reform, we eagerly anticipate the upcoming budget to prioritize substantial increases in funding for education."

She added, “We strongly advocate for the government to aim for a significant allocation boost, particularly for higher education institutions. Enhancing infrastructure, bolstering research capabilities, and ensuring overall educational quality are critical for our nation's growth trajectory. We hope to see a commitment towards achieving an adequate allocation of GDP to education, paving the way for transformative reforms and the establishment of new educational institutions, especially in the K-12 segment.”

Piyush Kumar Regional, Director- South Asia, Canada, Latin America and Mauritius, IDP Education said, “We hope the government spending on education, especially foreign education goes up in alignment with India’s development goals. Education forms the basis of a developed economy. Over the past decades, the government has taken some incredible steps to increase literacy and gross enrolment ratios. We anticipate the government extending that focus to the foreign education sector as well, directly impacting the working population and creating a globally competitive population.”

“We hope the budget takes into account the aspirations of students entering the higher education arena. We have seen a growing demand from students to gain knowledge from the world’s top-ranked universities, driving the trend for studying abroad. The demand is not only coming from urban centres but also from smaller towns.”

"To support the aspirations of such students, the Union Budget 2025 could announce policies to remove financial barriers by facilitating easier and more economical education loans, reducing remittance fees, and instituting more scholarships. These measures will empower students, foster a skilled workforce, and fuel India’s development goals.”

Govind Narayan Singh, Secretary at Gopal Narayan Singh University said that the future of millions of young Indians depends on a robust education system that equips them with the skills needed to succeed in today’s rapidly changing job market.

He stated, “The government’s focus will likely be on improving the quality of higher education, making it more accessible, and ensuring that it is aligned with the needs of industries. This will not only help in addressing the unemployment crisis but also position India as a leader in global talent development.”

He added, “With millions of young graduates entering the workforce every year, the need for a system that prepares students for real-world challenges has never been more urgent. The government’s role in this transformation will be crucial. By increasing investment in both public and private institutions, the government can ensure that universities and colleges are better equipped to provide high-quality education. Increased funding could improve teaching facilities, enhance the recruitment of experienced faculty members, and provide students with access to cutting-edge research opportunities. This would not only uplift the university but also ensure that students receive a quality education that meets global standards.”

“Such investments can help institutions like GNU produce graduates who are well-equipped to enter the workforce and contribute to the country’s economy," he said.

According to Govind Narayan Singh the need for an education system that fosters skill development and job readiness is becoming more critical than ever.

“As the government prepares for Budget 2025, focusing on education and employment will be key to ensuring the country’s long-term growth and stability,” he said.

Dr. Tom Joseph, Co-Founder of USDC Global says, “With technology playing a pivotal role in India's education sector, the 2025 Union Budget must prioritize key areas to enhance digital learning nationwide. Increased funding is needed to improve rural digital infrastructure, internet access, faculty training, and research. Sustained investment in AI is essential as AI-driven personalized learning can bridge skill gaps.”

Dr Joseph added, “Simplified regulations for EdTech startups, industry-academia collaborations, and AI-driven language learning initiatives will foster innovation while ensuring data privacy. Lowering GST on educational services from 18% to 5% would make learning more accessible, especially for underprivileged communities.”

“To expand globally, Indian EdTech firms need relaxed cross-border regulations addressing FEMA restrictions, visa policies, and currency fluctuations. Encouraging foreign universities to establish campuses in India, in line with NEP 2020, will enhance higher education quality and create opportunities for EdTech companies to scale. Adapting to rising demand, these firms must offer cutting-edge solutions to a diverse student base,” he said.

Dr Partha Chatterjee, Dean of Academics and Professor of Economics, Shiv Nadar University, Delhi NCR: “India has one of the largest populations of young people. Almost 40% of the population is less than 25, or at an age where they could be in education. To educate this large number, several steps need to be taken. This is critical if India has to achieve developed economic status by the time the demographic transition is over. It is obvious that the education and research budget has to go up – right now at 2.9% of GDP there is a lot of room for this funding to grow. Over the last few budgets skilling was prioritised. However, it is not clear what that investment in skilling has delivered. If India cannot build a solid education system, mere skilling will not help.

NEP has laid down an ambitious plan for higher education. In this budget, funds need to be allocated to support some of those initiatives. Funds also need to be allocated to help universities and colleges transform themselves into truly multidisciplinary institutions. To ensure we do well in research and have faculty members to teach this large population, much more funding needs to be channelled toward Phd scholarships.

The budget should also take steps to ensure more private funding. This will include enabling the Higher Education Financing Agency to provide loans to private universities.

Ankit Aggarwal, Founder & CEO of Unstop: With the Budget coming up, we believe there will be movement in the skill development and entrepreneurship industry. The Confederation of Indian Industry has proposed the formulation of a comprehensive National Employment Policy. This aims to consolidate various employment generating schemes across ministries and states that will enhance the focus on job creation. We feel there may be an increase in measures to boost female participation in the workforce through policy support for flexible work arrangements and incentives for organisations promoting gender diversity.

India’s employment and HRTech sectors will grow and this will be driven by emerging technologies. We feel there will be a 20% increase in the job market because of fields like AI, machine learning, and cybersecurity, alongside sector-specific hiring opportunities. Skills-based hiring is the need of the hour and this is why programs like Skill India Digital will play a crucial role in preparing the youth for the digital economy. What is also important is aligning the student’s skills with the requirements of the industry. We hope there will be a continued support for entrepreneurship, through increased investment in sectors like AI and IoT and the simplification of regulatory processes, will create a more conducive environment for startups, encouraging innovation and job creation.

There’s a strong possibility that more funds will be allocated to skilling initiatives, building on the government's previous efforts for 41 million individuals and the INR 4520 crore allocated to the Ministry of Skill Development and Entrepreneurship. We anticipate an increase in this year’s allocation to further boost skill development and job creation, with a greater focus on state-wise distribution of funds.

The key trends we see in 2025 will be AI driven recruitment and workforce planning along with AI tools streamlining hiring, reducing biases, and enhancing HR functions through predictive analytics and task automation. Skills based hiring will take the spotlight as employers will prioritize skills over traditional qualifications.

Professor Ramgopal Rao, Vice-Chancellor, BITS Pilani: "The Union Budget 2025 presents a pivotal opportunity to address some of the chronic challenges facing India’s higher education sector. With over 800,000 students expected to travel abroad for higher education in 2025, costing Indian households nearly USD 70 billion, it’s imperative for India to focus on creating world-class educational institutions at home. Increasing budgetary allocations for higher education is essential to enhance accessibility, equity, and excellence, helping us move closer to the National Education Policy (NEP) 2020 goal of a 50% Gross Enrollment Ratio (GER).

To stem the ongoing brain drain, we need strategic investments to make Indian universities globally competitive. This includes funding for Indian institutions to establish overseas campuses, granting them greater autonomy in administration and recruitment, and adopting outcome-based funding models tied to research and innovation output. A strong research ecosystem, supported by substantial grants and philanthropic incentives, is critical. Moreover, improving faculty quality by recruiting and retaining highly skilled educators across institutions will help bridge the gap between elite and Tier-2 colleges.

By empowering institutions to innovate and expand without bureaucratic hurdles, the government can create an inclusive and dynamic higher education landscape that retains top talent and propels India into the league of global education powerhouses."