The Indian School of Business, in Hyderabad, is launching a two-year pre-doctoral programme free of charge for young Indian researchers who want to study for a doctoral degree at a top US or European business school.

• India steps up war on inflation

The aim, says M Rammohan Rao, dean of ISB, is to support "young Indians who are interested in academics as a career." ISB, which is one of the world's newest business schools, has had some success in attracting Indian professors back to India from the US and Europe. However, like all business schools, it faces the growing problem of future faculty shortages because of the growth in demand for management education.

• Helicopter shuttle to beat India's traffic

ISB was set up with the help of two US business schools, the Wharton school at the University of Pennsylvania, and the Kellogg school at Northwestern University, as well as with the help of London Business School. To run the pre-doctoral programme, ISB will work with the University of California at Los Angeles and New York University as well as Kellogg and Wharton.

ISB is looking for applicants with strong academic records and a quantitative focus to study on the programme, which will begin later this year. The subjects offered include accounting, financial economics, information systems and operations management.