The economic slowdown has impacted business schools and there is a sharp 40-50 per cent decline in campus recruitment and an almost equal decline in the number of students opting for fresh admissions, according to an assessment made by Associated Chambers of Commerce and Industry of India (ASSOCHAM).
The organisation’s paper, ‘B-Schools are Facing the Consequences of Economic Slowdown’, revealed that the slowdown not only affected campus placements but also the salary packages offered at B-schools and engineering colleges, which have reduced by 35-40 per cent as compared to last year. The economic situation, however, has not hit the top 15-20 per cent B-schools including the Indian Institutes of Management.
“Many parents and students are now thinking twice before investing two years and several lakhs in a course, with the demand and placements of MBA graduates not as good as before,” the paper noted. It estimated that around 300-500 institutions have become defunct as they did not get enough students to be viable.
“As a result, a large number of B-schools and engineering colleges are not able to attract students. More than 190 B-schools closed down in 2012 in major cities like Delhi-NCR, Mumbai, Bangalore, Ahmedabad, Kolkata etc. Another 165 are struggling to survive,” said ASSOCHAM general secretary D S Rawat.
The paper further pointed out that this year, the offers from financial and telecom sectors have gone down by 35 per cent. “The packages offered are less encouraging than last year’s,” Rawat added.