Shocking! More than 200 management schools shut shop in 2013!
More than 200 business schools in cities like Delhi-NCR, Mumbai, Bangalore, Ahmedabad, Kolkata, Lucknow and Dehradun have shut shop in 2013.
Salaries offered to management graduates from second rung business schools have dropped by 40-45 per cent since last year.
A recent ASSOCHAM survey reveals how the economic slowdown has hit the careers of thousands of management graduates in the country.
Campus hirings across second rung business schools in the country have been severely hit this year due to economic slowdown, with only 18 per cent students landing job offers after completing the two-year MBA course, says an Assocham survey.
The salary packages offered at these b-schools have also been curtailed by 40-45 per cent as compared to last year, according to the survey of the industry body.
"Economic slowdown, stalling of new projects and investors' apathy towards key sectors like infrastructure, hotels, financial services, realty and retail have led to drying of job opportunities for several students from the b-category business schools, with only 18 per cent students landing job offers," it said.
India has been struggling with below 5 per cent economic growth, with the country's GDP clocking 4.7 per cent growth in the third quarter ended December, 2013.
The economic slowdown has not only killed jobs, but several b-schools are forced to shut down due to parents and students rethinking on investing two years and several lakhs in a course that may not lead to employment, the survey noted.
"Many parents and students are re-thinking on investing two to three years and several lakhs in a course, with the demand and placement of MBA graduates not as good as before due to slowdown. Around 450 institutions have become defunct as they are not getting enough students to be viable," Assocham Secretary General D S Rawat said.
The survey pointed out that more than 220 b-schools shut down in 2013 in the major cities Delhi-NCR, Mumbai, Bangalore, Ahmedabad, Kolkata, Lucknow and Dehradun while another 95 are struggling to stay afloat.
Moreover, candidates applying for the common admission test (CAT) for securing entry into top notch b-schools like the IIMs have also been declining for the last two years, Assocham said.
"The total number CAT applicants stood at 1.85 lakh in 2014, compared with 1.94 lakh in 2013, while MBA seats in the country rose from 95,000 in 2006-07 to 4,68,000 in 2013," the survey said.
Image: Placements at tier 2 MBA schools have suffered due to economic slowdown.
Photographs: Rediff Archives