Sluggish economy has taken its toll on second rung B-Schools across India. According to a Assocham survey, only 18 percent of MBA students have been able to get jobs at the end of their 2 years course in 2014.
That’s not all, even those who have been able to get campus placements from these B-Schools, the salaries offered have dropped by over 40-45 percent compared to previous year.
Comparatively in 2008, over half (54%) of Tier 2 B-School students were able to get campus placements. However, in 2012 recruitment of campuses saw a steep 40 percent decline and the downfall continued in 2013 as well.
Last 2 years (2012 and 2013) have been particularly bad for B-Schools. Increasingly, lesser number of students are taking admissions for MBA especially if they are not able to get through Top tier B-Schools like IIM’s, XLRI and FMS. This has resulted in many B-Schools getting shut down.
In 2012, 180 B-Schools closed down and it increased to 220 shutting down in 2013!
The Associated Chambers of Commerce and Industry of India (Assocham) survey says, “economic slowdown, stalling of new projects and investors’ apathy towards several key sectors like infrastructure, hotels, financial services, realty and retail have led to drying of job opportunities for a large numbers of students from the B-category business schools.”
The sluggish economy has not only affected Tier-2 B-Schools, but also the top tier ones. The number of candidates appearing for Common Admission Test (CAT) has been declining for last 2 years. In 2013, 1.94 Lakh students appeared for CAT, but this year (2014) the number has decreased to 1.85 Lakh students. On the other hand availability of MBA seats has increased from 95,000 in 2006-7 to 4.68 lakh in 2013 according to the Assocham survey.
One thing is sure, MBA has fallen off the radar of students minds. They do not want to spend lakhs of rupees and 2 years on a course that does not help them much in their job prospects!
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