Budget 2024-25: Edtechs bat for tax incentives, digital infra boost, ESOP focus
As Finance Minister Nirmala Sitharaman prepares to present the interim budget on February 1, the burgeoning edtech industry in India is on tenterhooks, anticipating fiscal policies that could shape the future of digital education.
With the ongoing digital revolution and the Covid-19 pandemic accelerating the adoption of online learning, industry stakeholders are hopeful for strategic initiatives to propel growth and innovation as the edtech industry and start-ups as a whole face the brunt of economic slowdown and funding crunch.
The industry is optimistic about potential tax incentives and benefits that may be announced in the interim budget. They say reduced Goods and Services Tax (GST) rates on digital educational content and services could make online learning more affordable, benefiting both students and edtech companies.
“We would like to appeal to the government to increase the education sector’s budget and reduce the GST slab from 18 percent to 5 percent on educational products and services. Our aim is to establish a strong foundation for the country’s children, particularly those from economically disadvantaged backgrounds,” said Prateek Maheshwari, Co-Chair of India Edtech Consortium (IEC) and Co-Founder of Physics Wallah (PW).
