The Union budget provides major policy direction, which
is eagerly awaited by the common man and the industry.
As management students we would like to stress on the
importance of sustainable growth of the economy. This
will help to create new jobs and increase investment and
India urgently needs tax reforms like the Direct Taxes
Code (DTC) and the Goods and Services Tax (GST), which will improve the ease of
doing business and also improve the Tax/GDP ratio. Also, with current average
spending at $400 per student compared to $6,000 in countries like the US, there
is a need to invest more on higher education.
In order to promote entrepreneurship, cheap loans should be sanctioned for new
businesses in growing sectors like IT, biotechnology, clean energy, etc. In
order to create more opportunities for highly skilled people, the emphasis
should be on promoting exchange of services and movement of labour, while being
a signatory of Free Trade Agreements (FTAs).
The low cost advantage that India currently enjoys in the services sector is not
sustainable in the long term. And to move up the value chain we need to invest
heavily and immediately in research and development (R&D ) as its benefits will
be reaped only after five to six years. We currently spend 0.9% of GDP on R&D
compared to a global average of 2%.
The government also needs to consider the reduction or removal of educational
services from the ambit of the service tax. This would make services like
coaching classes, vocational training , workshops, etc, more affordable for
students and result in better education standards in the country.
Primary education is the most important part of the education system, and in
order to improve the overall state of education in the country, more allocation
needs to be made towards it through the Right To Education (RTE) Act. In the
budget of 2011, Rs 21,000 crore was allocated to RTE - an increase of 40%.
However, this needs to be more than doubled to Rs 45,000 crore as estimated by
the planning commission for the 12Five-Year plan.
If these structural changes take place in our education system, it will
definitely lead us to a path of sustainable and rapid growth in the coming