As the Union Budget 2025 approaches, the higher education sector has high expectations for reforms and investments to address the nation’s critical challenges and capitalise on emerging opportunities. Stakeholders are calling for measures that bridge skill gaps, stimulate entrepreneurship, and enhance India’s global competitiveness.
Fostering Startups and Entrepreneurial Ecosystems
India’s startup ecosystem, which has grown significantly under the Startup India initiative, stands as a beacon of job creation. By December 2023, over 1.17 lakh startups had been recognised, generating more than 15.53 lakh direct jobs. However, experts believe more can be done to sustain this momentum.
Prof. Swapnil Sahoo, Assistant Professor of Strategy and Entrepreneurship at the Great Lakes Institute of Management, Gurgaon, emphasised, “There is a critical opportunity to drive job creation and provide relief to the middle class by fostering a supportive environment for startups and entrepreneurship. Streamlining regulations, enhancing tax incentives, and improving access to finance can amplify the ecosystem’s impact.”
He also highlighted the need to address skill gaps in emerging sectors such as artificial intelligence, the Internet of Things (IoT), and green technology. “Initiatives like the Pradhan Mantri Kaushal Vikas Yojana, which trained over 1.10 crore candidates between 2016 and 2020, must be scaled up to equip the workforce for evolving demands,” he said, adding that inflationary pressures necessitate revisiting tax policies to alleviate financial burdens on the middle class.
Supporting Middle-Class Households and Boosting Consumption
The middle class forms the backbone of India’s economy, and budgetary measures aimed at enhancing their disposable income could have widespread positive effects. Dr. Suresh Ramanathan, Dean of the Great Lakes Institute of Management, Chennai, noted, “Revising personal income tax slabs or increasing exemption limits could provide essential relief to middle-income households, stimulating economic consumption.”
He also advocated for targeted tax incentives in transformative sectors such as green energy, AI-driven startups, and skill development initiatives. These measures, he argued, would align with the nation’s broader strategic priorities for sustainable growth. “Equitable tax distribution and greater transparency in filing processes could foster trust among taxpayers while expanding the tax base,” Dr. Ramanathan said.
Visionary Investments in Skill Development and Education
The role of higher education in driving India’s economic ambitions cannot be overstated. With technological advancements reshaping industries, the demand for skilled professionals has never been higher.
Mr. Abhay G Chebbi, Pro-Chancellor of Alliance University, underscored the importance of creating Distinguished Skill Universities. “These institutions will address the critical skill gap by equipping the next generation with industry-relevant expertise, driving employment opportunities and enhancing India’s competitiveness in the international arena,” he said.
Such investments, he argued, would be instrumental in positioning India as a global economic and educational superpower. “A visionary budget that prioritises these initiatives will serve as a cornerstone for India’s emergence as a leader in the 21st century,” Mr. Chebbi added.
Towards a Comprehensive Strategy
The upcoming budget presents a unique opportunity to tackle pressing economic challenges while laying the groundwork for long-term growth. A blend of policy reforms, financial incentives, and targeted investments in education and skilling could deliver transformative results.
As Prof. Sahoo pointed out, “A comprehensive strategy integrating these elements will not only strengthen India’s entrepreneurial ecosystem but also foster sustainable growth and inclusive prosperity.”
The higher education sector awaits the government’s response, hopeful for initiatives that not only address immediate concerns but also set a progressive roadmap for the future.
