B-Schools Fast Losing Shine in India?

It’s a wake-up call for unscrupulous management institutes, incompetent faculty and lacklustre students! Barring graduates from IIMs, the B-schools are losing the shine that attracts corporate India Inc. for campus recruitment and are increasingly facing their survivals, only 10 per cent of the graduates are actually employable despite the robust demand for MBAs, says an Assocham survey. Its paper on “B-schools and Engineering colleges shut down- Big Business Struggles” reveals that since 2009, the recruitments at the campus have gone down by 40 per cent in 2012. As a result the B-schools and engineering colleges are not able to attract students. More than 180 B-schools have already closed down in 2012 in the major cities Delhi-NCR, Mumbai, Bangalore, Ahmedabad, Kolkata, Lucknow, Dehradun etc. Another 160 are struggling for survival.

DS Rawat, secretary gene­ral of the Chamber said that there was no quality control, the placements are not commensurate with fees being charged, the faculty is often below par and infrastructure poor. “The biggest reason for the gap is the rapid mushrooming of tier-2 and tier-3 management education institutes that have unfortunately not been matched by commensurate uplift in the quality of management education. Most students prefer to choose cheaper AICTE approved programmes rather than B-schools,” said Rawat. “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,” he says. About 160 schools offering Master of Business Administration (MBA) courses are expected to close this year. Only 10 per cent graduates from Indian business schools excluding those from the top 20 schools get a job straight after completing their course, compared with 54 per cent in 2008.


Some students expressed that the business schools promote their brands only on placement and by boasting about high salaries. They offer theoretical courses which lacks practical skills required by the corporate sector today, mentioned the paper. In the last five years, the number of B-schools in India has tripled to about 4,500 amounting to as many as 3,60,000 MBA seats, collectively. The demand has begun to deflate now, as economy growth rate hit its slowest in the last nine years and the quality of education provided by B-schools came under the radar. The paper also stressed that nowadays students are not concerned about the quality of education in an institute, they only want to know the placement and salary statistics and discounts offered on the fee structure and this has spoiled the entire education system, adds secretary general. Similarly, the Master of Computer Application (MCA) course, nearly 95 colleges stopped offering the programme this year and only 25 have started MCA courses.

MBA seats in India grew almost four-fold from 95,000 in 2006-07 to 3,60,000 in 2011-12—resulting in a five-year compounded annual growth rate of 30 per cent. Unfortunately, job opportunities for MBAs have not grown in the same proportion. The MBA capacity in the country was built based on the projection of a 9 to 10 per cent economic growth rate. Assocham has advised to improve the infrastructure, train their faculty, work on industry linkages, spend money on research and knowledge creation, as well as pay their faculty well in order to attract good teachers.

MBA school myth in India

  • Many private schools are just business models launched by management gurus looking to make a fast buck.
  • Many media-savvy MBA schools take page after page of ad space in leading newspapers to declare their achievements.
  • Don’t take an MBA as a mandatory requirement for success in your career: If you really want to take an MBA course, evaluate your current position, your long-term goals, and your finances.