The education sector should be revamped to mobilise its incipient growth. India being a major supplier of highly talented skill pool across the globe, time has come to put equal importance to its decay along with its creation. My dream budget encompasses designing suitable mechanism to create a win-win situation to these skilled emigrants as well as to the renowned educational institutions (often highly subsidised directly or indirectly) facing massive brain-drain. Revival of educational institutes should not be confined to the creation of new stock but to unveil the hidden stock, the skill outflow from the country. At the same time, emphasis should not only be on subsidising education but to stop the 'outflow of subsidies' given a bleak prospect of reverse migration. A 'migration fee' would both enrich the fisc and boost the endeavour of reversing brain-drain.
Secondly, the higher education sector is in dire need of well designed incentive scheme for students as well. In my dream budget, if there is any 'students' saving incentive scheme' a la the tax incentive schemes for senior citizens or women, that would provide interest benefit payment (similar to interest subsidy on loans), above the usual savings account rate for the fellowships deposited in 'special students' savings account'. This will not only create savings attitude of these students pursuing higher education and strengthen their financial footing but work as a reduced opportunity cost (that has a significant weight in the calculation of net-gain from pursuing higher studies) of higher education and work as an incentive, alternative to an enhanced fellowship of higher studies.
Sahana Roy Chowdhury,
Economist,
Monetary Research Project,
ICRA Limited, Kolkata.
and
A former Research Fellow of
Indian Statistical institute, Kolkata
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