Around 80 per cent of the students in the business schools are not getting jobs. The current placement year seems the most challenging one in recent times for Indian business schools, reveals Assocham.
According to the The Associated Chambers of Commerce of India, demonetisation, lacklustre business sentiment and stalling of new projects, are the reasons of job opportunities for business school (B-school) students are drying on.
The campus hiring in B-schools of India has gone down severely (around 30 per cent) this than last year.
“The salary packages which are offered at B-schools and engineering colleges are also being curtailed by 40-45 per cent as compared to last year,” Assocham said.
The Assocham Education Council (AEC) said, “Many parents and students are re-thinking on investing three-four years and several lakhs in a course.”
Lack of student enrollment in B-schools has made over 400 institutions defunct, said the chamber.
As per the findings of the report, a large number of B-schools and engineering colleges are not able to attract students that caused over 250 B-schools to closed down since 2015 in major cities including Delhi-NCR, Mumbai, Bangalore, Ahmedabad, Kolkata, Lucknow, Dehradun etc. Another 99 are struggling for their survival, the report added.
“The biggest reason for the gap is the rapid mushrooming of tier-2 and tier-3 management educational institutes that have unfortunately not been matched by the uplift in the quality of management education,” said the chamber.
Suggesting the solutions to the problem, the Assocham stated to improve the infrastructure, train their faculty, work on industry linkages, and spend money on research and knowledge creation and making students employable rather than employed.