Budget Lauds Education Loans, Overseas Study Gap Remains

New Delhi, Jul 23 (PTI) Education sector experts Tuesday welcomed the Budget announcements to offer loans up to Rs 10 lakh for higher education in domestic institutions and upgrade ITIs, while also highlighting that it is equally important to recognise the gap in opportunities for students aspiring to study abroad.

Union Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25 in Parliament earlier in the day.

Besides the financial support for student loans, Sitharaman also announced measures including upgrading 1,000 Industrial Training Institutes (ITIs) in the hub and spoke model, aligning course content with the skill needs of the industry and revision of model skill loan scheme.

Chairman of the Seth Anandram Jaipuria Group of Educational Institutions Shishir Jaipuria said the loans will make quality education more accessible, allowing students to choose institutions of merit.

Associate Professor at the Indian School of Business Manish Gangwar said the budget stands out for a strong emphasis on job creation. "Through a series of innovative schemes and forward-thinking policies, this budget aims to generate substantial employment opportunities and address the skill gap in the workforce," he said.

Kunal Vasudeva, co-founder and managing director of the Indian School of Hospitality, said the budget is a major win for those pursuing vocational routes.

"It will help people develop practical skills and excel in their fields, bringing more youths into the formal economy. Additionally, with manufacturing bases in or near districts, there will be a lesser need to migrate to cities. Such initiatives are crucial for hyper-local job creation and boosting the manufacturing sector," he added.

Aritra Ghosal, founder and director of OneStep Global, said while the budget makes notable progress in skilling and empowering youths, the government should make global education more accessible to boost India's international educational stature.

"We suggest increasing financial support and reducing interest rates on education loans for overseas higher education as well. Such an initiative will support study-abroad aspirants in easing their financial burden and cultivating global competency. This would foster global mobility and international collaborations," she added.

Her thoughts were echoed by Saurabh Arora, founder and CEO of University Living.

"The financial support through student loans up to Rs 10 lakh for those pursuing higher education in the country is encouraging. Yet, it is important to recognise the gap in opportunities for students aspiring to study abroad. Increasing support for international education would further enhance India's stance in the global educational ecosystem," he said.

Sachin Jain, country manager, Education Testing Service (ETS) India and South Asia, said the measures announced are promising, but there is still more that could be done to address the challenges faced by youngsters in the rapidly evolving job market.

"We welcome the Centre's decision to launch a new scheme to provide paid internship opportunities in the top 500 companies but we believe that it is imperative to complement practical training with critical soft skills, such as English proficiency, which are key markers of employability," he said.

Mahadeo Jaiswal, Director of IIM Sambalpur, said the announcement on loans will undoubtedly empower many aspiring students to pursue their academic goals without the burden of financial constraints and increase job opportunities.

"The provision of Rs 10 lakh education loans with interest subvention and the revised Model Skill Loan Scheme are commendable steps towards making higher education more accessible. These measures will create a robust and inclusive educational ecosystem, fostering growth and development," said Nipun Goenka, managing director of the GD Goenka Group.

Anish Srikrishna, CEO of TimesPro, said the comprehensive package of schemes, with an estimated cost of Rs 2 lakh crores, aims to facilitate employment and skilling initiatives, significantly contributing to job creation and skill enhancement across various candidate categories in the country.

"The direct benefit transfer of one month's salary to new entrants in the workforce will help expand the base of formal employment, benefiting 2.1 lakh young people in India," Srikrishna said.

Pravesh Dudani, founder and chancellor of the Medhavi Skills University, said the long-awaited upgrade of 1,000 ITIs, coupled with curriculum alignment with industry trends under the New Education Policy (NEO) 2020 signifies a significant boost to its implementation.