Survey reports: Just 29% students get a job after completion of B-School
In last five year, the number of business schools has increased tremendously and reached to 4,000. Students spend big amount to get this degree, but now there is no surety that after getting this degree you will get a good paying job in slowing economy. No doubt still students from many B-Schools are bagging lucrative job offers but this trend is changing slowly. Presently, students from leading 20 colleges are getting lucrative job offers. Lavina Thadani, a 23-year-old MBA graduate, said, "I expected more after spending so much on my MBA," who took a 300,000-rupee loan to get her degree but earns only about 200,000 rupees a year. "If I had known earlier I would have never done my MBA."
According to a rating agency Crisil found that nearly 140 B-Schools offering Master of Business Administration (MBA) courses are about to face the closure, as nearly 35% of their seats were vacant in 2011-12, which are almost 15-20% more compared to last year.
Anshul Sharma, chairman of Asma Institute of Management, said, "The boom which was there has gone. Those who entered this industry with a motive to make money are leaving because there is not much money left. Every college is working to sustain itself."
There is nearly four-fold rise to more than 352,000 MBA course spots in the five years to March 2012. Only 29% of graduates from Indian business schools-excluding those from the top 20 B-Schools- get a job straight after completing their course, compared with 41% in 2008.
Aditya Dighe took out Rs 330,000 loan to fund his MBA from a school in India's financial hub of Mumbai. It is almost four month and he has taken 18 job interviews and his search is still on. He has taken the loan to fund his studies and if he will not get a job soon the repayment of the loan amount will increase as the time passes. He said, "The B-schools have promoted their brand only on placements and by boasting about salary packages. The course is theoretical and you don't learn the skills corporates want."