Around 10,000 management seats are on the verge of getting extinguished as more than a hundred business schools offering MBA degrees and postgraduate diplomas in business administration might shut shop, reported the Hindustan Times. Struggling with vacant seats and a dip in campus placements, a total of 101 management institutes have written to the All India Council for Technical Education (AICTE), the apex body of technical and management institutes, seeking voluntary closure. In addition to this, another 11,000 seats could be affected as certain institutions have also applied for closure of their management courses.
There are over 3,000 management institutes across the country which are recognised by AICTE that offers MBA and postgraduate diploma courses. In a data with AICTE, it has been reported that the largest number of the institutes were from Uttar Pradesh who have applied to shut down. Around 37 UP institutes have applied for closure, while 10 institutes each from Karnataka and Maharashtra have applied for the same. HT reported officials as saying that most of the requests are likely to be accepted.
As per the report, around 76 management institutes closed down in 2016-17, while 2015-16 saw 66 of them shut down. Both were considered as not good years for the Indian economy.
A decade back, management studies in India were largely restricted to the Indian Institutes of Managements (IIMs) and some top private institutes. However, in later years, the demand for management graduates rose with the rise in economy. This led to a spurt in new private and government-backed institutes. But due to the absence of competent faculty and industry training facilities, reports suggested that most B-schools began churning out graduates who were far from being job-ready.
The issue of closure of the institutes has surfaced because of low employment opportunity. In 2017, job offers for fresh management graduates in India hit a five-year low, according to AICTE. There was indeed some major drop in the campus placements during some previous years.