INDIA RATINGS MARKET WIRE: Budget Raises Allocations for Education

Chennai, February 28, 2013: India Ratings views the increased allocations to education sector 17% over FY13 Revised Estimates (RE) to INR658.67bn as a positive feature. The agency also feels strengthening of existing schemes like Sarva Shiksha Abhiyan and Rashtriya Madhyamik Shiksha Abhiyan through hiked allocations could provide salutary benefits. 

Concurrently, INR16.5bn allocations to All India Institute of Medical Sciences could accelerate the commencement of these courses in these institutions. Nevertheless, the ramp up and movement to operational phaseof these institutions on a timely basis is a challenge.

Scholarships announced to the tune of INR52.84bn are likely to bring few disadvantages sections of the society eligible for education. At the same time upped allocations to few institutes of excellence (Aligarh Muslim University, Banaras Hindu University, Tata Institute of Social Sciences and Indian National Trust for Art and Cultural Heritage) provide impetus and reinforces the thrust for this sector.

India Ratings feels that long awaited liberalization of the sector is imperative for substantial improvements in education infrastructure.

(Source: Manager – Corporate Communications and Investors Relations, India Ratings & Research  A Fitch Group Company)