India – Budget update

India’s economy is struggling under high inflation and the worst slowdown since free-market reforms in early 1990s. The new government is trying to restore the confidence of domestic and foreign investors by bringing more clarity and structure to the taxation system.

Significant government funding has been allocated to the education sector. The BJP’s manifesto included areas such as girls’ education, e-learning, re-structuring of the University Grants Commission (UGC) into a Higher Education Commission and setting up National Multi-Skill Missions, with more detail about these still to be announced. The Union Government will also create a separate Ministry for promoting entrepreneurship and skills development.

The budget announced an increased investment in school, vocational and higher education. The government also identified new areas in the higher education sector for further development, such as research in agriculture, life sciences and biotechnology, film and television institutes and sports.

Some of the key initiatives which might offer opportunities for New Zealand institutions and training providers:

School education

• Allocation of NZ$97 million for a teacher training programme to introduce new training tools and motivate teachers under the Pandit Madan Mohan Malviya New Teachers training programme.

Vocational education

• Launch of Skill India, a programme focused on training Indian youth, with an emphasis on employability and entrepreneurship skills.

• Allocation of NZ$20 million for the Young Leader programme to promote leadership amongst Indian youth.

Higher education

• Five new Indian Institutes of Technology (IITs) and five new Indian Institute of Management (IIMs) to be established with an initial allocation of NZ$97 million in the current fiscal year.

• Five technical research centres will be identified and strengthened.

• Two new Agricultural Research Institutes of Excellence to be established with an allocation of NZ$20 million.

• NZ$39 million has been allocated to start two agriculture and two horticulture focused universities.

• Two new agri-biotechnology clusters to be developed.

• Two biotechnology clusters planned in Bangalore and Faridabad.

• Five technical research centres to be strengthened through private public partnerships for nanotechnology.

• Global partnerships will be developed to transform the Delhi chapter of the International Centre for Genetic Engineering and Biotechnology (ICGEB) into a world-leader in life sciences and biotechnology.

• Two film and television institutes will be established.

• A National Centre for Excellence in Animation, Gaming and Special Effects has been proposed.

• NZ$20 million has been allocated for the establishment of a sports university in Manipur. An additional investment NZ$20 million is included for training sportsmen and women for upcoming Commonwealth and Asian games.

Policy/Education loans

• The government has proposed simplifying procedures to facilitate education loans for higher studies in order to promote higher education amongst youth.

• The budget announcements present a range of opportunities for New Zealand institutions across different areas.

• The policy on easing education loans will help boost demand for foreign education.

• A focus on teacher training presents a range of opportunities for New Zealand institutions in the areas of capability development and delivery.

• The focus on research in agriculture and biotechnology could attract collaboration with New Zealand institutions that have a high level of expertise in these areas.

• New Zealand has global expertise in animation, gaming and special effects and the establishment of a National Centre for Excellence could offer opportunities for stronger engagement and collaboration in this field.

• New Zealand enjoys high level of sporting ties with India at various levels therefore the proposal of new sports university and sports training offers opportunities for New Zealand providers.

The Education New Zealand team in India has a strong level of engagement at various levels with the Ministry of Human Resource Development and various government stakeholders in India.

For more information please contact Ziena Jalil, Regional Director – South and South East Asia, india@enz.govt.nz