Out of 3L MBA grads every year, only 10% are employable: Experts
Reason Said To Be Lack Of Global Skills
India produces about three lakh management graduates every year, but hardly 35,000 of them are employable, said experts who gathered here for a conference of B-school heads.
According to the All India Council for Technical Education (AICTE), 3,54,421 students enrolled for MBA in 3,364 institutions across the country last year. 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. India is probably the only country that could help supply managers to European countries and Japan. Most countries in Europe are facing a crunch.
Around the 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.
In the past 10 years the number of management institutes in the country has doubled.“While the previous central governments h,ave aimed at reaching the global enrolment ratio for higher education (27%), AICTE has randomly allowed institutes of engineering.
According to AICTE, the number of management institutions has risen from 2,614 in 2006-07 to 3,364 in 2013-14. While the numbers have continuously risen until 2011-12, at least 71 institutes shut shop in 2012-13 and 107 in 2013-14.
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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.
Lack of industrial exposure of faculty and students is another issue. “Many institutes do not have faculty with industrial experience. Some wish to join a management institute immediately after completing their postgraduate study. The same applies to students, too.
Many engineering graduates do not want to waste time. Hence they apply for MBA immediately after graduation. While in the US and Europe, institutes consider work experience as a criterion for admission to MBA. It is a mid-career education for them.