Budget 2024: Can Edtech Startups Make Learning More Affordable & Accessible?

India's once-booming edtech ecosystem, hit hard by funding slowdown and profitability concerns, pins its hopes on the upcoming interim Budget 2024 for a much-needed shot in the arm. While acknowledging limited major announcements due to election year, stakeholders urge Finance Minister Nirmala Sitharaman to consider supportive measures.

GST Reduction Tops Wish List:

Current 18% GST on services and 28% on hardware are deemed major hurdles.

Edtech Consortium (IEC) co-chair Prateek Maheshwari seeks reduction to 5%, citing affordability and accessibility benefits.

LEAD Group CEO Sumeet Mehta sees GST relief on school solutions as fostering innovation and wider access.

Beyond GST, Incentives Sought:

Stakeholders seek a strategic GST policy and broader incentives to boost the sector.

Assiduus Global's Somdutta Singh calls for incentives for cutting-edge technology, accessibility, and a favorable regulatory environment.

Vidyakul CEO Tarun Saini expects short-term tax breaks, grants, and regulatory support to build confidence.

35 North Ventures' Milan Sharma urges special tax exemptions for startups in low-literacy areas.

Higher Budgetary Allocation Expected:

National Education Policy 2020's 6% GDP target for education fuels hope for increased allocation.

This could benefit experiential learning, digitization, and infrastructure, eventually reaching edtech.

Saini sees existing government policies benefiting edtech and expects more such initiatives.

Innovation and R&D Push Crucial:

Adda247's Anil Nagar emphasizes supportive policies for growth rather than just financial incentives.

Budget focus on capacity building and technology across the education spectrum is desired.

Increased allocation for government accelerator programs is anticipated.

Collaboration between edtech startups and the government for wider reach is sought.

Overall, the edtech sector hopes Budget 2024 will address affordability, accessibility, and innovation challenges through GST reduction, broader incentives, and a focus on technology and collaboration. While acknowledging the limited scope of an interim budget, they see it as a crucial step towards reviving the once-vibrant ecosystem.