Every year more than 3 lakh management students are coming out from the B-Schools with degrees for jobs. Experts say that nearly 90% of the MBA graduates are jobless.
A total of 3,54,421 aspirant enrolled for the management course in 3,364 institutions in India, which are affiliated with All India Council for Technical Education (AICTE), New Delhi.
Former Director of IIM Bengaluru, J Philip 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 said that India could supply managers to European countries and Japan. These countries are facing a crisis. [How to reach out to B schools for UG programme?]
The Director of XIME, Bengaluru said, "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."
According to AICTE, the number of institutions has constantly been increased. In 2006-07, there were 2,614 B-Schools. In 2013-14, there were 3,364 institutions. Around 71 and 107 B-schools, have been closed in 2012 and 2013, respectively.
Some of the reports claim that India is the 5th most preferred educational destination for MBA aspirants.
The Director of Singhad Institute of Business Administration and Computer Application, Pune, Parag 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 necessary requirements."
The Director of PSG Institute of Management, R Nandagopal said, "Many institutes do not have faculty with industrial experience. Some wish to join a management institute immediately after completing their postgraduate study."
As per the reports, most of the engineering graduates do not want to waste time. Hence, they will apply for MBA immediately after graduation. [How Top B-schools in India are attracting International Students?]
Nandagopal said that in US and Europe institutes consider work experience as a criterion for MBA admission.