Time To Unshackle MBA Education

Management education in India is almost 60 years old. Private institutions like XLRI, ISWBM, a few public universities and IIM Ahmedabad and Calcutta laid the foundation for management education in India between 1950 and 1965. After decades of stagnation, MBA education boomed in the 1990s with economic liberalisation. Today, India has the largest number of B-schools in the world. According to AACSB, India had 3,902 B-schools in 2015, while the USA and the Philippines have 1,624 and 1,259 B-schools respectively. Indian management education is, however, facing unprecedented challenges today.

No global impact: While the top 25 B-schools, like IIMA, IIMB, I IMC, IIFT, FMS Delhi, are well established in India, they lag behind in globalisation. Globalisation of Indian B-schools can be analysed on four parameters: Research, Accreditations, Ranking and Foreign students admitted. On each of these counts, Indian B-schools lag far behind Asian peers like China, Hong Kong or Singapore. Only five Indian B-schools, namely ISB, IIM Calcutta, XLRI, TAPMI and IMT Ghaziabad have AACSB accreditation, considered the gold standard. In China, 18 B-schools have been accredited by AACSB.

B-schools in India are yet to produce globally-accepted academic framework for management education and the world is yet to witness authoritative management theories coming out of India. Even ISB, IIMA, IIMB and IIMC have struggled to get full-time international students in double digits on their campus. It’s time that all Top 25 B-schools made serious attempts to be global B-schools by 2025. IIMs, who have public funding and larger resources, must lead.

No level playing field: Almost 80 of the Top 100 B-schools in India, including XLRI, SPJIMR Mumbai, MDI, IMI and IMT, offer Post Graduate Diploma in Management (PGDM) approved by AICTE. Virtually all top corporates hire graduates from these campuses, notable among whom are Leena Nair, global senior vice-president (Leadership & Organisation Development), Unilever plc (XLRI), Rakesh Kapoor, global chief executive of Reckitt Benckiser (XLRI) and Prasoon Joshi, lyricist and chairman, McCann Worldgroup Asia Pacific (IMT Ghaziabad).

The PGDM B-schools received a big jolt in 2010 when AICTE intervened in their functions in areas like fees, admission policy and curriculum. B-school associations EPSI and AIMS and the Jaipuria Group, approached the Supreme Court of India, which has granted interim stay against AICTE. Its final verdict is expected soon. But the damage is done. PGDM B-schools have put aside major investments in new campuses, advance technology solution and other initiatives. It’s time the government acknowledged the contributions of PGDM B-schools and gave them a level playing field.

MBA Programmes: Currently, 90 per cent of the 3,600 MBA programmes, running in universities and their affiliated colleges, don’t focus directly on Skill Development and Employability of their graduates. This needs to change. These programmes must revamp their curriculum and come at par with IIMs and PGDM B-schools.

Clearly, it’s time Indian policy makers, industry associations, corporates and business school administration came together to restore the glory of MBA education in India.