The Positive Influence of Union Budget 2024-25 on Indian Startups

Allocation of Loans for Higher Education in Domestic Institutions

To enhance the accessibility and quality of higher education in domestic institutions, Finance Minister announced the allotment of e-vouchers for education loans worth over Rs.10 lakhs. This financial assistance will be given to one lakh students in India every year directly for an annual interest subsidy of 3% of loan amount. She also announced the revision of ‘Model Skill Loan Scheme’ to enable the government-promoted loans up to Rs.7.5 lakh for empowering 25,000 students annually.

Prateek Maheshwari, Co-Founder of PW and Chair of the India EdTech Consortium (IEC) says, “I appreciate the Budget 2024 announcements and see them as positive steps towards Viksit Bharat. The government’s focus on closing the skill gap is clear with five new schemes. One key scheme promotes collaboration between the government, academia, and industry to upskill youth by matching course content with industry needs and adding new courses for emerging demands. This is a crucial development, and the EdTech sector can play a big role in expanding this initiative across Bharat. For students who are not eligible under any scheme or policy, the announcement of a loan of Rs 10 Lakh to pursue higher education at any domestic institution is in line with NEP 2020’s vision of improving the Gross Enrollment Ratio of the nation and the government should also look at introducing academic performance-linked models of funding for Educational programs. Additionally, loans for skilling and schemes supporting women and girls will help harness the country’s demographic and gender dividend, boosting economic growth. However, it’s important to remember that the budget allocation is only part of the solution. The real challenge will be how all stakeholders come together and execute this to pave the way to larger economic progress”.

Welcoming this initiative, Balkishan Sharma, Founder & Chairman at FVEG comments, “As we watch FM Shrimati Nirmala Sitharaman present the Union Budget 2024-2025, we are filled with hope for the future of education in India. We happily acknowledge the progressive measures the government is taking to further the education of young Indians. The Union Budget 2024-25 proposes revising the Model Skill Loan Scheme to help 25,000 students every year. The government will also offer internships in 500 of India’s top companies. The companies can employ these interns through their CSR funds. As a support to employers, reimbursement of up to Rs 3,000 per month for two years towards their EPFO contribution for each additional employee will be provided. India's large population challenges the country, and these new schemes aim to create new jobs and provide employment to well-educated youth”.

Ravi Sonnad, Founder & CEO, Enabling Leadership (EL) adds, “It is very encouraging to see Skill Development listed among the top 9 priorities in the Union Budget 2024, reflecting the Government's commitment to sustained efforts in this area. The partnership between state governments and industry to skill 20 lakh youth over the next 5 years is a commendable initiative. It is essential that we place equal emphasis on life skills development as a critical component of Skill Development. At Enabling Leadership, we have seen firsthand how life skills—such as communication, teamwork, and problem-solving—are crucial for empowering youth to thrive in today's dynamic world. Integrating these skills into skill development programs will ensure that young people are not only job-ready but also equipped to be effective leaders and contributors to society”.