Budget 2020: Sourcing via FDI, ECB could boost research infra in education
The Union Budget will be presented on 1 February. The industry is expecting a slew of reliefs in the form of tax rebates, incentives for digital payments, lowering of GST slabs, among other things. Education Sector: The National Education Policy recommended that up to 20% of government expenditure should go to education by 2030. We hope this year’s budget increases allocation from the current 10 percent in accordance with NEPs guidelines. In addition, the Indian education sector cannot grow rapidly with philanthropic and government funds. Other Asian countries allow private equity investment into schools and colleges, which has scaled up their education sector.
The Indian government should similarly allow private companies to set up new institutions, instead of only allowing charitable trusts and societies to do so. Also, tax breaks should be given to education entrepreneurs setting up new training institutions and education technology firms with the caveat that a majority of profits are reinvested back into the company. GST on private training and coaching services should be reduced from 18% to 12 percent- Dr. Akhil Shahani, Managing Director, The Shahani Group