The Union Budget for the year 2023-24 is just few days away and the education sector, which is among one of the top contributors to the economy has pinned high hopes. Last year in Union Budget 2022-23, the government had allocated Rs 40,828.35 crore for higher education while a fund of Rs 63,449.37 was granted for school education and literacy. Finance Minister Nirmala Sitharaman will table the Union Budget 2023 on February 1, 2023. With the COVID-19 pandemic accelerating the shift towards online learning, the edtech industry has seen a significant boost in recent months. However, industry leaders believe that tax exemptions and increased government support will be crucial for the sector's continued growth.
One of the key demands of the edtech sector is for tax exemptions on e-learning products and services. Currently, e-learning products and services are taxed at the same rate as traditional classroom-based education. Industry leaders argue that this tax structure puts a burden on edtech companies and hinders their ability to compete with traditional educational institutions. By providing tax exemptions for e-learning products and services, the government can encourage the growth of the edtech sector and make online education more accessible to students. Another major demand of the edtech sector is for increased allocation for research and development. With the rapid pace of technological change, it is essential for edtech companies to invest in research and development to stay ahead of the curve. However, many edtech companies, particularly small and medium-sized enterprises (SMEs), struggle to find the resources to invest in R&D. To support the growth of the edtech sector, the government should increase allocation for R&D in the Union Budget 2023. This will not only help edtech companies to innovate and improve their products and services, but also help to create a more dynamic and competitive edtech industry.