TLDR: The Indian government has increased the education budget to Rs1.2 trillion (£11.4 billion) for the current year, compared to last year’s Rs1.13 trillion. However, international education stakeholders are disappointed that the budget did not address issues related to interest rates on education loans and tax collected on overseas education remittances. They hope that the full-fledged budget after the general elections will address these concerns. The Reserve Bank of India’s updated rules require a 0.5% tax collected at source for remittance amounts over INR 700,000 (£6,700) funded through a loan, while those without a loan pay a 5% tax. Stakeholders also call for increased funding for scholarships, research collaborations, and exchange programs, as well as incentives for universities to welcome international talent.
The government’s focus on quality education is highlighted through initiatives such as the PM Schools for Rising India program and the Skill India Mission, which aim to provide high-quality education and skill training to youth. The budget also allocates funding for the establishment of new higher education institutions and international university campuses, signaling a move towards internationalizing education. Stakeholders believe that strengthening partnerships with global universities and providing more financial assistance will help improve access to international education for students from tier 2 and tier 3 cities.