With approximately 300,000 students completing their MBA or PGDBM degrees every year, India is one of the largest producers of management graduates across the globe. However, if we are to take into account what the experts gathered in a conference of B-School heads are saying, less than 10 per cent of those management graduates are actually employable.
Based on the statistics disclosed by the All India Council for Technical Education (AICTE), 3,54,421 students enrolled for MBA in over three thousand institutes all over India last year. In a statement to the TOI, J Philip, former director of IIM-Bengaluru, said, “Today, the requirement of managerial candidates in the Indian market is between 35,000 and 40,000 every year. There are two reasons for unemployment: Lack of global skills and excess supply.”
Philip also stated that India is likely to be the only country in the world that can help supply managers to Japan and European countries. “Most countries in Europe are facing a crunch,” said Philip.
Another expert who did not wish to be named, told ToI: “Around year 2000, there were about 10 world class business schools in India. Now we have 25, but we have a long way to go. We need an industry-oriented syllabus and interaction with industry to improve employability.”
Director of Singhad Institute of Business Administration and Computer Application, Pune, stated that in the past one decade, the number of management institutes in the country has doubled. While the previous central governments aimed at reaching the global enrolment ratio for higher education (27%), AICTE randomly allowed institutes of engineering,” Kalkar said.
“While quantity has improved, the government and AICTE have been compromising on quality. Institutes have been given approval without examining or inspecting documents, infrastructure, faculty and other basic requirements,” he added.
Lack of industrial exposure of students and faculty is another big issue. R Nandagopal, director, PSG Institute of Management, said: Many institutes do not have faculty with industrial experience. Some wish to join a management institute immediately after completing their postgraduate study.”