The upcoming Union Budget will be crucial for all industries considering the Lok Sabha elections are due next year in 2024. Last two years between multiple waves of Covid. The revision in the existing tax slabs, especially for EdTech platforms and courses, will prove to be beneficial for the students to reduce their overall cost.
Current B2C market size by sector
The Covid-19 impact propels the edtech market size in India to reach $6 billion by 2022. The sector is expected to touch a market size of $300 billion globally by 2029, as against $101 billion currently. (‘Indian Edtech in 2022’ Bloom Ventures report)
Forecast for the size of the B2C market in 2030
The government has set the tone for the current budget as it will set the tone for the next 25 years. The government’s emphasis on improving access to technology and education, especially in disadvantaged and rural areas, may lead to greater collaboration with private businesses that specialize in providing technology-based education solutions.
The India@100 road map will bring a wave of digitization across industries in India. Many changes are going to come after the implementation of the National Education Policy. With tax incentives and other incentives provided by the government, a lot of foreign institutes are planning to set up campuses in India, promoting India as an education hub.
Sector Post-Covid Performance
The edtech sector was one of the most profitable sectors during the pandemic. There was an initial slowdown as institutions opened up, but with the evolving consumer behaviour, the sector will continue to witness disruptions in the future. The consumer behavior that has evolved post-Covid reflects the combination of online and offline learning that many upcoming edtech start-ups are adopting. A key learning from the post-Covid slowdown for edtech was maintaining a steady focus on product and courses to add value to students.
Effects due to inflation, recession, or geopolitical conflicts
The current geopolitical situation is increasingly affecting the global economy, driving down global GDP. Inflation has been the same for the education sector as it has been across industries, preventing students from pursuing an overseas education that used to be more affordable pre-Covid. Digital education has brought a ray of hope for students seeking to pursue courses from reputed global institutions. The long term impact for this industry is yet to be decided. Like all other nations, India must continue to push for growth while working within the constraints and possibilities presented by the global economy.
Expectations from Budget 2023
Harkunwar Singh, Co-founder and CEO, OneistoX, said, “As an ed-tech platform invested in bridging the innovation gap in the Architecture, Engineering and Construction (AEC) industry, we are committed to providing tax exemption on e-learning. Looking forward to seeing. Products and services in this year’s Union Budget. Construction is the least digitized industry in India today after agriculture.”
“The lack of technology adoption in this sector can only be bridged with an enhanced workforce that has access to more convenient means of digital learning. At present, e-learning is taxed at 18 per cent. Hence the tax The exemption can reduce the financial burden, encourage more young professionals to upskill and contribute to the innovation and digitization of the construction industry, said Harkunwar Singh.
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