Barring quality ones like IIM.
By Sreekanth A. Nair
A study conducted by the Associated Chambers of Commerce & Industry of India (ASSOCHAM) found that apart from the students coming out of top business schools like the government-run Indian Institute of Management (IIM), most of the business schools in India are producing ‘sub-par graduates who are largely unemployable’ who earn less than $147 (INR 10,000) a month if they find placements.
“Barring a handful of top Business schools like the government run IIMs and other few, most of 5,500 B-schools in the country are producing sub-par graduates who are largely unemployable resulting in these pass-outs earning less than Rs 10,000 a month if at all they find placements,” ASSOCHAM said.
The study further noted that among the pass outs, only 7 percent are actually employable in India excepting graduates from IIMs. The study was conducted by ASSOCHAM Education Committee (AEC).
There are at least 5,500 business schools in India at present. Around 220 B-schools had shut down in the last two year in cities such as Delhi-NCR, Mumbai, Kolkata, Bangalore, Ahmedabad, Lucknow, Hyderabad, Dehradun etc. And at least 120 more are expected to wind up in 2016. Low education quality coupled with the economic slowdown, from 2014 to 2016, campus recruitments have gone down by a whopping 45 percent.
Lack of quality control and infrastructure, low-paying jobs through campus placement and poor faculty are the major reasons found out by ASSOCHAM as the reason for the poor performance of B-Schools.
“There are more seats than the takers in the B-schools. This is not surprising in the wake of poor placement records of the pass-outs, “ASSOCHAM Secretary General D S Rawat said.
In the last five years, the number of B-school seats has tripled. In 2015-16, these schools offered a total of 5,20,000 seats in MBA courses, compared to 3,60,000 in 2011-12.
Though a student spends $4411 to $7352 on an average on a two-year MBA program, they earn only $117 to $147 a month.
“Even the quality of IIM/IIT students coming out now compared to the last 15 years has come down due to the quality of school education,” ASSOCHAM said.
ASSOCHAM said that the mismatch between aspirations of students and their level of preparation are crucial as most of the fresh graduates are afraid of getting their hands dirty. The flaw lies with the negligible hands-on training provided at Tier 2 and 3 colleges.
The study also said that of the 15 lakh engineering graduates India produces every year, 20-30% of them do not find jobs and many other get jobs well below their technical qualification.
1 Comment
Well goods and services are cheaper in India than in the US, so a one bedroom that rents for 1,200 dollars in the US cost about 170 dollars in India. Notwithstanding, a salary of 147 dollars per month is 86 percent of the rent of that one bedroom (170 dollars per month). Therefore a student who paid up to 7,200 dollars in tuition for a MBA , may find a job that cannot pay the full rent for a one-bedroom apartment. So it is sad for the student having such a prestigious degree and likely student debt , yet cannot afford to pay rent fully for a one-bedroom, if it is going for 172 dollar per month, the average cost for a one-bedroom in India according to Numbeo, Cost of Living.