The IIMs will have to reinvent themselves considerably if they are to compete with top B-schools internationally - both in terms of their faculty as well as their curriculum.
Rajat Kathuria, professor, Icrier
"Going abroad is not the only way to build a global brand as the ISB has shown. If the idea is to attract Indian students abroad, set up more campuses here"
An excess demand situation can be addressed in either of two ways: An increase in supply to quell the shortage or a rise in prices.
Or perhaps a bit of both. Indians of the previous generation, weaned on shortages and patronage, were quite surprised, and I daresay happy, to see what liberalisation of product and services markets could do to supply and price.
Telephones, automobiles, two-wheelers and sundry white goods are now available off the shelf at a progressively improving quality and affordable prices.
One is then tempted to ask why the same principle can't apply to management education, where we face an acute shortage of quantity and quality.
The numbers are staggering. This year around 27,50,000 students are likely to take the Common Admission Test for screening into the seven IIMs and the 100-odd other management institutes affiliated to CAT. Of these about 2,000 candidates will be admitted to the IIMs while around 20,000 students will secure admission to reasonable-quality private institutions.
What happens to the rest? Those who can afford it will go abroad, while some will suffer at the hands of the many unscrupulous private institutes that have mushroomed in the country and the third cohort will simply give up on their ambition to pursue an MBA. At least for now.
These are symptoms of a larger self-inflicted problem. Supply has been restricted by policing entry of both domestic and foreign investment in management education.
Part of the rent generated by the 'created' shortage was captured by the now discredited regulatory agency, All India Council For Technical Education -- AICTE did considerable damage to the cause of management education in the country.
The National Knowledge Commission, in its report on higher education, rightly called for its head. Regulatory failure was aggravated by the unrelenting conflict between the former human resource development minister and the IIMs over autonomy, tuition fees and pay.
The struggle over the IIMs wanting to establish overseas presence became a hyped, and if I may suggest, a disingenuous symbol of the confrontation between the HRD ministry and the IIMs. The tension between the HRD ministry and the IIMs has visibly eased under the new minister; and with the IIMs having secured 'victory' over most of the real issues of autonomy and tuition fee, it seems surprising that they would seek to seriously pursue their demand for setting campuses abroad.
Therefore, the announcement two weeks ago that the government is 'in principle' open to the idea of the IIMs going overseas, I am afraid, is akin to putting the cart before the horse.
According to estimates, Indians spend close to $5 billion(Rs 22,500 crore) to educate their children abroad. Data on how much of this is spent on business education is not available, but that's not the point.
Taking the IIMs abroad and attracting to a large extent the same cohort, seems a terrible waste not only of resources, but of a great opportunity as well. Many private management institutions that have established campuses in Dubai and Singapore attract mostly Indian students and students of Indian origin living overseas.
The former would rather study in India at a lower cost while the latter could be persuaded, along with other foreign nationals to receive their degree in India. So where's the hitch?
The Indian (higher) education sector is particularly inimical to private investment, both domestic and foreign. As a result, established institutions find it easier to set up campuses abroad.
This is frighteningly similar to Swaraj Paul and L N Mittal abandoning India in favour of destinations abroad. We lost out on all the attendant multiplier benefits that would have ensued.
The education sector in general is too crucial today for us to risk repeating the same mistakes. Our prospective policies in this sector will largely dictate whether we reap the demographic dividend or convert it into a liability.
Going abroad is not the only way for the IIMs to become a global brand. The success of the Indian School of Business (ISB) proves it can be achieved right here in India.
And if regulatory conditions become better, including increased autonomy for tuition fees and pay, the huge domestic demand base can be used to convert India into a global (management) education hub that would attract students from all over the world.
Indira J Parikh, founder president, FLAME*
"The IIMs can provide the best management education in the world, but just building top-quality infrastructure isn't going to be enough"
On various occasions in the past, some of the IIMs have expressed a desire to set up campuses abroad and, on others, they have been invited to either set up IIMs or IIM-managed institutions abroad. Due to our policies, however, this was not allowed.
The current debate in India is whether international universities can set up their campuses in India and whether Indian educational institutions like the IIMs should set up institutions abroad.
The answer is obviously a resounding yes -- the IIMs can set up educational institutions abroad to provide high-quality and relevant education which will be as good as the best, if not better.
In order for the IIMs to set up institutions there are a few conditions which need to be addressed.
If the IIMs have to make an impact globally they will have to articulate, to themselves and others, the basic purpose and meaning of setting up these institutions.
If the purpose is to generate resources, then the choice is only to go to countries which need the education which IIMs are now giving. They would then take the role of filling gaps in a given country and repeat what they have been doing in India.
However, if the real purpose and meaning of setting up educational institutions is to broaden the horizons of learning, then the cumulative wisdom of the millenniums available to them as learning heritage could be translated to creating a unique institution abroad.
Essentially, the step to venture out into an unknown land and to stand tall next to the existing giants, seeped into the traditions of providing learning for centuries, would be the biggest challenge for the IIMs.
The most daunting tasks would be to cut through the stereotypical images of the country with its accompanying images.
So far, the IIMs have made an immense contribution in providing education for professionalising organisations through their post- graduate students.
Those educated in the IIMs have propelled the growth of organisations, enhanced effectiveness and efficiency of the Indian and overseas professional organisations.
However, creating, building and shaping of an institution of learning with a difference means evolving a culture of contribution, creating newer streams of knowledge, theoretical and conceptual frameworks anchored in highly disciplined research, designing structures which facilitate innovative and contributive research would make it possible for IIMs to definitely design and build an institution of learning which would make a difference.
The most effective resources of the country available to IIMs are intellectual and philosophical orientations which could facilitate in making departures.
Spirituality is a unique resource. The IIMs will have an enormous challenge to own up the spiritual and knowledge based heritage of the country wherein the students learn to manage ambiguities and uncertainties of life and the environment and prepare the young generation to look beyond the horizons to touch their talent.
In a tumultuous world if educational institutions can provide the understanding and experiencing of life, the chances are the IIMs would create and build institutions of learning abroad which would be unique and can be contributors and creators of knowledge which would become wisdom for the next generation and the nations.
Yes, the IIMs can journey abroad to set up institutions and create mileposts and landmarks in the realms of knowledge streams and decode the mysteries of the cosmos, the universe and human existence.
*Foundation for Liberal and Management Education, Pune. The author is ex-Dean, IIM, Ahmedabad
