In India 93% of MBA graduates in India are unemployed, Data from across the country shows that the payoff of this course has not been promising. Almost one of two MBA graduates is not placed and unemployment is rising.
“You see some students who do not get placed take up small jobs; some others get placed in some company one or two years after graduating. Now, with mandatory internships, we feel the situation will improve as the students will get some kind of training while studying,” said Anil Sahasrabudhe, chairman of the All India Council of Technical Education.
Indian MBA graduates are earning a measly 8000 to 10,000 rupees per month, and previously they have spend lakhs of rupees on their management education, but after graduating, most of them are not able to find a placement.
Job offers for fresh management graduates in India are at a five-year low, official data show, trend experts blame on a sluggish economy as well as a mismatch between the years-old curriculum and industry expectations.
In 2016-17, just 47% of Master of Business Administration (MBA) graduates got placed on the campus, a dip of 4% over the previous year, marking a five-year low. At 12%, the drop was far sharper for postgraduate diploma holders.
The campus placements of management students have been declined as shown in the table below:
|% of students placed||2012-13||2013-14||2014-15||2015-16||2016-17|
|PGDM: Post-Graduate Diploma in Management
|MBA: Master of Business Administration
About 200,000 students passed out of these institutes in 2016-17 from the 5,000 management institutes across the country. The data does not include the premier Indian Institutes of Management (IIMs) that are not affiliated to the main regulatory body, the All India Council for Technical Education (AICTE). The trend has AICTE officials worried.
A senior AICTE official on the condition of anonymity, because he is not authorised to speak to journalists, said, “It is a market-driven process and hence placements are dependent on that. We have taken cognisance of that (and) are updating and reviewing the curriculum so that it meets the requirement of the industry”.
Pankaj Bansal, co-founder and CEO, PeopleStrong, a leading HR company said “The industry is on the lookout for job-ready people which most MBA grads are not (barring those in IIMs and other top B-schools where placement is high),” With the decline in the job opportunities, as per the Human resources the quality of graduates also diminished.
About 10 years ago, In India, some top private institutes and the IIMs only provide the management studies courses and with the economic growth of the country, the demand for the management courses soared, which lead to a change in new private and government-backed institutes.
But there was no sufficient faculty and industry training facilities, most of the students who completed their graduation from B-schools were very much far from being job-ready.
The same problem prevails with the engineering students also, the number of graduates has over the past years has been declined. As per the current status, India produces around 700,000 engineers from its 3,000 institutes but barely half of them are employable.
A second AICTE official said “We have almost completed work on the model curriculum for management institutes keeping today’s demand in mind. The revised curriculum focuses more on skills and training the students rather than theory,” AICTE officials commanded to manage them for 3,500 affiliated institutes, to make it updated, as per the education experts it will be very much helpful.
Kamal Singh, executive director and CEO of United Nations Global Compact, India, a UN organisation looking into quality education said “The major issue is the quality of these institutions as they not being able to align with the industry expectations. What the industry needs today they are not able to provide, those who are not able to provide the first-hand internship to students in good companies also suffer when it comes to placements.”