The Associated Chambers of Commerce and Industry of India (ASSOCHAM) released a report entitled “The Closing of Many Business Schools and Engineering Colleges and the Difficulties of Big Businesses” at the end of last month. The report pointed out that the number of Indian MBA students has increased nearly fourfold – from 95,000 in July 2006 to 360,000 in December 2011. However, job opportunities for MBA graduates have not increased at the same rate. The Indian Federation of Industry and Commerce pointed out that the company’s campus recruitment in 2012 has fallen by 40% compared with 2009. The report emphasized that, apart from the top 20 business schools in India, only 10% of graduates who can find work immediately after graduation. In 2008, this ratio was as high as 54%. In 2012, in major cities such as New Delhi, Mumbai, Bangalore, Ahmedabad, Kolkata, Lucknow, and Dehradun, more than 180 business schools closed due to lack of students. There are also more than 160 business schools that are struggling and are expected to close in 2013.
DS Rawat, secretary-general of the Federation of Indian Chambers of Commerce and Industry, pointed out that one of the main reasons for the large-scale closure of business schools is the rapid expansion of management colleges in the second and third tiers, but the quality of teaching cannot be guaranteed. “Hundreds of engineering and management colleges have been opened, but most managers focus on campus construction and employment opportunities. Few people are concerned about infrastructure and faculty building, nor are they aware of the need to create enough practical opportunities for students. ”
The report of the Indian Chamber of Commerce and Industry also pointed out that in the new global business context, business schools need to update and retrain teachers. Many business schools cannot actually do this, which often makes the content of their courses redundant. Lavot said that if the business school curriculum does not meet the needs of businesses, their graduates will not have the necessary employability, and will be unemployed after graduation. The only option for business schools can only be to close schools.