B-schools in India are struggling, might shut down

by Paul Joseph on February 9, 2013 · 0 comments

According to a survey, which says the only exceptions are the Indian Institutes of Management or IIMs and a few other top schools, Poor on-campus placements at many business schools in the country is resulting in a drastic decline in the demand for MBA courses The survey, conducted by industry body Associated Chambers of Commerce and Industry of India (Assocham), says, “Only 10 per cent of graduates from Indian business schools, excluding those from the top 20 schools, get a job straight after completing the course, compared with 54 per cent in 2008,” it says. It further mentioned that recruitment at campuses saw a steep 40 per cent decline in 2012.. This in turn has resulted in more than 180 B-schools having to shut shop in 2012, including some based in metros like Delhi, Mumbai and Bangalore. Another 160 B-schools are struggling for survival and might shut down this year, the survey says. There is also a problem of plenty. In the last five years, the number of B-schools in India has tripled to about 4,500. There were 95,000 MBA seats in the country in 2006-07; in 2011-12 there were 3.6 lakh seats. But in years of slow economic growth, job opportunities for MBAs have not grown in the same proportion. The survey says many private schools are a business venture by “some management guru to earn money out of investment”. The more media savvy schools, it says, draw students with big campaigns to showcase their achievements. The decline is not restricted to B-schools, Assocham says. Engineering colleges have seen a drop in interest as has the once much-sought-after Master of Computer Application (MCA) course. “Nearly 95 colleges stopped offering this programme this year,” the survey says. Source – PTI ©2009 Copyright by Invest In India

[via Invest In India]

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