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Why only 7 percent management students across India get employed?

In India, there are thousands of B-schools, who offer the undergraduate and postgraduate course to the students for getting a suitable job. After all the picture is clear according to ASSOCHAM survey, a large number of B-school graduates are unemployed. These graduates who passed from the reputed B-Schools earn "less than Rs 10,000 a month if they find placements."

Possible Reasons:

  • India has near about 5,500 B-schools.  
  • The education quality is poor in premium B-school, they can't match with IIMs.
  • Only 7% management graduates get their job mostly from IIM, ASSOCHAM Education Committee (AEC) noted.
  • probably 120 new B-schools are expected to start in this current session 2016; In the last five years, seats in B-school has been tripled.
  • These B-schools works only on the infrastructure, not on education.
  • The faculty of these B-schools has been a problem as well since the teaching profession is also declining in our country. Students are neglected by faculty in Tier 2 and 3 colleges, which obviously reflect on their performance.
  • "There is a large mismatch in the aspirations of graduating engineers and their job readiness." Around 97% engineers pass out every year, however only 18.43% get employed in IT and 7.49% in core engineering
  • ASSOCHAM Secretary General said that the quality of higher education in India across disciplines is poor and does not meet the needs of the corporate world.

What are the possible solutions?

  • "Need to update and re-train faculty in emerging global business perspectives is practically absent in many B-schools, often making the course content redundant.
  • These schools need to re-work on their fee structure, as students pay a hefty amount of Rs 3 to Rs 5 lakh on a two-year MBA programme while they earn only Rs 8,000 to Rs 10,000.

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