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Article of the Week

Record closure of Engineering and MBA colleges!

An industry study has revealed that a lot of reasons like absence of industry collaborations, lack of quality teaching, a slowing economic growth and excess supply have forced the closure of hundreds of management and engineering institutions in India over the past few years. The study, published late last month by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), B-schools and Engineering Colleges Shut Down - Big business struggles, found that MBA seats grew four times, from 95,000 in 2006-07 to 360,000 in 2011-12.

At the same time job opportunities for MBA graduates have not increased at the same rate. On-campus recruitment by companies was down by 40% in 2012 compared to 2009, ASSOCHAM said.  More than 180 business schools closed down in 2012 in the major cities of Delhi, Mumbai, Bangalore, Ahmadabad, Kolkata, Lucknow and Dehradun among others, because they could not attract enough students.

While hundreds of engineering and management colleges were opened, they were looking at just campus placement and jobs. There were no quality controls in terms of infrastructure, qualified faculty or industry interface for student. The ASSOCHAM study revealed the need to update and retrain faculty in emerging global business perspectives is practically absent in many B-schools, often making the course content redundant.

A growing gap between the demands of industry and the education and skills that many universities offer has resulted in a generation of overqualified but underemployed and dissatisfied graduates. Repeated studies by industry groups have shown that the majority of India's graduates, including those specialising in engineering and management, are unemployable. The ASSOCHAM survey said students were equally to blame. Students are not concerned about the quality of education in an institute; they only want to know the placement and salary statistics and discounts offered on the fee structure, and this has spoiled the entire education system.
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