Union Budget 2021 looks briefly at education, but has some hits and misses: Neeti Sharma, SVP, TeamLease

We have seen massive changes due to the Covid-19 pandemic. So, naturally, this year, we primarily expected the Union Budget 2021 to have an additional focus on upskilling and reskilling of the workforce. Especially in sectors such as Manufacturing, Ecommerce, Logistics, Healthcare, Pharmaceuticals, etc. However, these Union Budget 2021 majorly neglected these aspects during the announcement.

The budget has spoken about increasing skilled workforce for new technology competencies like AI, Big Data, Robotics, etc. But it has not looked at any impetus or reforms to augment the skilling ecosystem. Some of the key aspects that the Union Budget 2021 overlooked are as follows:

Developing a robust and physical and digital infrastructure for skilling

Technology adoption has changed the way we work, live and learn. But there is a huge digital divide which needs to be bridged for digital education to be successful. We have also witnessed the private sector embrace digital learning in a big way. However, the rural and impoverished workforce that desperately needs a higher degree of skilling remains neglected. They neither have the means to access the private sector infrastructure nor the necessary support from the government. Moreover, vocational training institutions across the country remain woefully inadequate in terms of both physical infrastructure and manpower. The teaching methodologies have remained unchanged for the past two decades as well.

Enabling technology adoption for blended learning/skilling

As of 2021, 760 million Indians have access to or use smartphones. Moreover, India is estimated to have more rural internet users than the city or urban users. In such a scenario, a countrywide push to enable technology adoption for blended learning and skilling should be an easily achievable goal. The 3000 crores that the government allocated to the National Apprenticeship Training Scheme is only a drop in the ocean. We need more than that to achieve meaningful change in the skilling ecosystem; especially with regards to enhanced tech-adoption.

Fast-tracking the National Employment Policy

With NEP being launched recently, what needs to be seen is how and how soon it is brought into practice. With almost 90% of India’s workforce informal, the government needs to push the NEP implementation faster. India’s manufacturing sector cannot compete with China as they need a major upskilling.

Creating a tax relief on CSR funds

Under the Income Tax Act, some contributions to CSR activities such as Prime Minister’s Relief Fund, some rural and skill development projects enjoy exemptions. However, by and large, CSR activities are not exempt from GST and other tax liabilities. Such an exemption would reduce an organization’s cost burden and thereby enabling corporates to invest further in skilling and rural workforce development.

From the education and research perspective, the Union Budget 2021 has made few announcements that will help the sector, especially setting up more schools and universities which will contribute to creating an employable workforce for the future. Additionally, the allocation of INR 50,000 crores for the National Research Foundation will improve the research ecosystem and lead to a more methodical and scientific approach to learning.

Coming to the announcement on apprenticeship, the focus to strengthen NAPS and NATS is a positive move. Allowing more Universities to offer degree apprenticeships (from 100 universities in last year’s budget to 150 universities this year) is a supportive gesture. However, there is still no clarity on the criteria basis which will allow the universities to initiate these programs. This is one of the key aspects that the Union Budget 2021 should have considered.