- 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 MBA seats
- The report blamed low quality education and economic slowdown
Only 7 per cent of MBA graduates from Indian business schools, excluding those from the top 20 schools, get a job straight after completing their course, the report found. The report observed that while on an average each student spends nearly Rs 3-5 lakh on a two-year MBA programme, their current monthly salary is a measly Rs 8,000 to Rs 10,000.
The report from industry body Assocham blames the lack of quality control and infrastructure, low-paying jobs through campus placement and poor faculty as the major reasons behind the unfolding B-school disaster.
The report also says that only 7 per cent of the MBA graduates are actually employable.
There are at least 5,500 B-schools in the country at present, but including unapproved institutes could take that number much higher, the report said.
"The quality of higher education in India across disciplines is poor and does not meet the needs of the corporate world," Assocham Secretary General D S Rawat said.
"Even the quality of IIM/IIT students coming out now compared to last 15 years has come down due to the quality of school education. 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," said the report.
"Around 220 B-schools have shut down in the last two years in Delhi-NCR (National Capital Region), 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 per cent," the study revealed.
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.
The report also observed that out of 15 lakh engineering graduates India produces every year, 20-30 per cent of them do not find jobs and many other get jobs well below their technical qualification.
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