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Pre-Budget expectations for the Education & Training sector

Posted On: 2016-02-15 19:26:59


Mr. Rahul K Patwardhan, CEO - NIIT Ltd.

Online education is a fast growing global growth arena, both in formal education and vocational training. We hope that the government will introduce measures to ensure a level playing field for the highly regulated Indian online education and training companies against the much larger funded global players who are entering the Indian market aggressively, in an unregulated manner as far as Indian taxation regime is concerned.

Further, we hope that the Finance Minister will announce specific measures in the Union Budget to help make education and skilling more affordable to the masses. Skill India and Digital India are two key and highly ambitious initiatives of Government of India, and in the forthcoming budget we expect specific Indirect tax rebates for the companies and its partners who are working towards making these initiatives a success. Government has set an ambitious target of skilling 500 million people by 2022. In a country where less than 4% of the population are formally skilled, FM needs to substantially increase fund allocation to the sector to draw youth to the skilling programmes. FM should also spell out specific incentives and policy framework to boost the start-up sector by announcing tax rebate and allocating more funds for the development of the sector.

GST is another much awaited Indirect tax reform, which will boost the economy. We are expecting a firm roadmap from the Government for its implementation. We also hope there would be changes in the Income Tax policy frame that will allow us to get quick refund for the excess taxes paid.

Shares of NIIT LTD. was last trading in BSE at Rs.75.9 as compared to the previous close of Rs. 71.3. The total number of shares traded during the day was 174277 in over 1766 trades.

The stock hit an intraday high of Rs. 76.35 and intraday low of 73. The net turnover during the day was Rs. 13109048.


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