Impact of Union Budget 2021-22 on the Education Sector

Impact of Union Budget 2021-22 on the Education Sector

The National Education Policy 2020 is a transformational policy advocating a complete reset of teaching and learning processes. Legacy education in India has focussed on developing a class of workers who are champions in cracking examinations and who are specialised in executing instructions given by a “competent” authority. It is quite apparent that the legacy education system was designed to deliver clerks and workers who are programmed to act on instructions given by those in power. Speculating on whether our education system was architected to attain the objectives of our ruler(s) or not, has been feeding many debates in our country, however not much effort has been made to break out of this paradigm.

Some of the shortcomings of our education system design are recapitulated below to help set the context for this article and they are

1.     The outcomes of our education system are myopic, and examination driven. Marks are more important than learning.

2.     The education sector continues to be dominated by “licence Raj” driven by multiple regulators and contradictory and convoluted regulations.

3.     The Central and State Universities are busy managing more colleges than they can handle and spend more time in organising exams and inspections instead of focussing on scholarship and learning outcomes

4.     There exists a large trust deficit between the industry and the academia and thus the employability of our graduates is low

5.     The “brain drain” of the 60’s, 70’s and the 80’s from India has contributed extensively towards scholarship and benefitted the developed world but has proved to be a huge loss for the Indian education system. Indians have done well as academics and are leading some of the top ranked Universities in the world but there is no incentive for such accomplished academics to return and serve their motherland.

6.     Many of the best schools and Higher Education institutions are run and operated by “Edupreneurs” disguised as not for profit organisations. 

7.     The vast potential of knowledge, art and learnings from ancient India as captured in our scriptures is lying dormant due to the popularity of English medium. There are very few students who understand our national and regional languages that can help us unlock this potential.

The NEP 2020 is an expression of the intent of the Government to change all of the above and make a fresh start. The budget 2021 seems like a step in this direction. This is quite evident from some of the proposals made in this budget and they are

1.     Setting up of 15,000 exemplar schools to show case the implementation of the NEP 2020 in action. This seems like an achievable target and this could set the stage for other schools to follow the established best practices, thereby translating the intent of NEP 2020 into action. 

2.     The National Digital Educational Architecture (NDEAR) to support teaching and learning activities coupled with the National Initiative for School Heads and Teachers for Holistic Advancement (NISTHA) to train 56 lakh school teachers in 2021-22 digitally, will speed up the propagation of modern methods of teaching and enhanced assurance of learning. Additionally, the National Professional Standards for Teachers (NPST) will be a  great incentive for our teachers to strive for continuous improvement and enhance the dignity of the profession. All of the above will contribute towards augmenting the quality of academic delivery.

3.     Rolling out the much-needed Higher Education Commission of India to reduce the number of regulations and regulators in the higher education space is a fundamental step towards liberating the Indian Education system from the licence Raj.

4.     Rs 50,000 Crores of allocation over the next five years to the National Research Foundation can act as Rocket Fuel to bring back the renowned “lost” Indian academics and also help retain the emerging scholars from the country.

5.     The establishment of 100 Sainik Schools in collaboration with NGO’s, private schools and states as proposed in the budget will rekindle the national spirit in the new generation and boost their pride of being Indian

6.     The allocation of Rs 3000 Crores towards realignment of the National Apprentice Training Scheme coupled with the alignment of the National Skill Qualification Framework with that of UAE and the move of introducing collaborative training programs with the Japanese workforce are strong indication of the Government’s intent to enhance employability and provide global employment opportunities to our youth. Continued focus on employability shall reduce the trust deficit between the industry and academia and enhance the value proposition of Indian degrees, diploma and qualifications.

7.     The special funding allocated for establishing the Academic Board of Credit (ABC) is a pioneering innovation and must be lauded. The ABC shall empower every Indian student to accumulate credits from multiple universities and institutions across multiple subject areas and curate a learning pathway that best fits the student’s aspiration. The ABC, if implemented rightly can be as impactful as the UIDAI which was introduced about a decade ago. This could make India a forerunner in education transformation, globally.

Having stated the above, the budget 2021 could have done more to jump start the implementation of the NEP 2021. Here is a list of wishes that the Government chose to either ignore, or wilfully delay to accommodate more important spends required by our economy.

1.     The Government must create a board analogous to the board of disinvestment focussed on de-shackling the present Central and State Universities from the burden of administering multiple colleges. A structured program for converting established colleges into autonomous institutions or deemed universities is definitely the need of the hour. Merging single faculty institutions to create multi-disciplinary universities/institutions needs to be accelerated to enhance the employability of our youth and to help India reap its demographic dividend.

2.     NEP 2020 advocates the promotion of regional languages in the early years of schooling to help India harness the potential of the knowledge trapped in our scriptures and also to build on the Indian pride. This would require significant allocation of money to translate and develop educational content in regional languages. There could have been some allocation towards this objective to give this a start. 

3.     The Government must provide for legitimate means of raising capital to the private education providers of the country. More than 70% of the HEI in the country are run by the private sector disguised as not for profit institutions. It is time for our Government to open this closet and allow such private educators to reap dividend legitimately. The Government must evaluate the various structures developed by private educators and provide legal mechanics for them to benefit monetarily without breaching the line of commercialisation.


There has been some criticism about the quantum of monies allocated by the Government for education in this budget and all educators would have preferred more allocation, however the Government has chosen to focus on the quality of spending in this budget rather than the quantity. It is quite evident that the Government is setting the stage to make a beginning towards transforming education in line with the NEP 2020. If this assumption is true, then be rest assured that the funding taps will open year on year to provide the necessary impetus required for building a modern and effective education system designed to build the new India.


Sachin Jain

Country Manager India & South Asia at ETS

3 年

Great insights Sanjay Padode - just to add (a) research and innovation can't be restricted to public domain if India needs to accelerate from Services economy to Innovation economy - hence participation of institutions based on merit instead of Public or Private in National Research Fund is critical and (b) HEIs should be exempted from FCRA if we really want Indian institutions to become international in true sense - there is lot of foreign research grants which gets stuck due to strict FCRA regulations

Meenakshi Sharma

Assistant Director - Public Relations and Media, KL Deemed to be University

3 年

Informative article

Parag Diwan

Chairman @ Paradigm Consultants | Higher Education Sector Expert

3 年

Good insights

Sarika Singh

Building Digital Marketing Strategies for NGOs | Non-Profits | Create Online Fundraising campaigns and Paid Promotions for lead generation | #FundraisingForGood

3 年

#NEP2020: No Child Should Be Left Behind. Register for the webinar and #BridgeTheGap https://bit.ly/3ddpabJ

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Krishna Kumar

Founder & CEO - Simplilearn

3 年

Very good thoughts Sanjay Padode

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