Lucknow: A study conducted by the Assocham Education Committee (AEC) has made some shocking revelations. The study claims that business school graduates — other than those from IIMs and top business schools — remain largely unemployable and only seven per cent of such graduates are actually employable.
More than 5,500 B-schools in the country are producing sub-par graduates, who are largely unemployable and as a result, these pass-outs are earning less than Rs 10,000 a month.
Assocham secretary general D.S. Rawat said, “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”.
He expressed concern over the decay in the standards of these B-schools, many of which are not properly regulated, India has at least 5,500 B-schools in operation now, but including unapproved institutes could take that number much higher.
The Assocham report says that only seven per cent of the MBA graduates are actually employable.
Around 220 B-schools have shut down in the last two year in cities such as Delhi-NCR, Mumbai, Kolk-ata, Bangalore, Ahmeda-bad, Lucknow, Hyderabad and Dehradun.
Low education quality coupled with the economic slowdown, from 2014 to 2016, campus recruitments have gone down by a whopping 45 per cent.
The Assocham report said that the lack of quality control and infrastructure, low-paying jobs through campus placement and poor faculty are the major reasons for India’s unfolding B-school disaster.
“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 report said.
While, on an average, each student spent nearly '3 to '5 lakh on a two-year MBA programme, their current monthly salary is a measly '8,000 to '10,000. The faculty is also another problem as few people enter the teaching profession due to low salaries and the entire eco-system needs to be revamped.
