B-schools appear to be losing their sheen. Aside from the top 20 business schools like the Indian Institutes of Management(IIMs), merely 10% of graduates from business schools manage to get hired by corporate India.


In the last five years, the number of MBA seats annually in India has tripled from 4,500 to as many as 3.6 lakh, according to an Assochamstudy, but campus recruitments have gone down by 40% in the same period.

The bad news continues with the study estimating that 180 schools had shut down in 2012 and another 160 schools offering MBAs were expected to close this year. “Only 10% of graduates from Indian business schoolsexcluding those from the top 20 schools get a job straight after completing their course, compared with 54% in 2008,” the study said.

The paper “B-Schools and engineering colleges shut down — big business struggles” pointed to the lack of quality in faculty and the fact that most MBA courses were not adequately designed to match the industry’s demands.

Barring graduates from well-known B-schools including IIMs, the institutes are not able to attract companies for campus recruitments, it added.

The study claimed that more than 180 business schools had shut down in 2012 in major cities like Delhi and the NCR, Mumbai, Bangalore and Kolkata. Another 160 institutes are struggling for survival.

“There is no quality control in most of these institutes. The placements are not commensurate with fees being charged and the faculty is not up to the mark,” Assocham secretary general DS Rawat said.

The biggest reason for the gap was the rapid mushrooming of tier-2 and tier-3 management education institutes that has unfortunately not been matched by commensurate uplift in the quality of management education, he added.

“The need to update and re-train faculty in emerging global business perspectives is practically absent in many B-schools, often making the course content redundant,” the study said.

The surveyed students said business schools promote their brands only on placement and by boasting about high salaries. They offer theoretical courses which lack practical skills required by the corporate sector, the study said.

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