Why India’s 90 Percent MBA Students Are Unemployable? – Top 7 Reasons

Business Schools in India

A few years ago, ASSOCHAM conducted a research to find out employability of MBA students in India.

This report concludes that more than 90 percent of MBA students in India are unemployable.

90 percent?

You go to be kidding?

Research report was verified and confirmed.

Hence, it came as a shock though not a surprise for many B-schools in India.

Despite this expose, till today B-schools hasn’t changed much.

Therefore, students are left to fend for themselves.

The short-term professional courses are now saving them and getting them decent jobs.

But the big questions remain the same that is – is it worth pursuing MBA now?

Answer cannot be blunt Yes or No. There are silver linings. As many premiere b-schools still produce world class talent.

But in recent years, the swarm of students opting for MBA have drastically declined.

Neither industry do not see any worth of hiring MBAs nor students see worth pursue it and spending moolah on it.

Nevertheless, many students in India, almost lacs of students, still pursue MBA.

There are loopholes in our education system. That needs immediate attention and resolution.

Otherwise, students spending tons of money on their education will only go down the drain.

Therefore, to pin point the problems in B-schools’ education, we have created this list.

We have listed out top seven reasons, why 90 percent of MBA students are unemployable.

Here is the list:


1. Curriculums are not updated to Industry’s needs

The major bottleneck is outdated MBA curriculums.

This issue even effects major B-schools in India as well.

According to industry’s needs, for management positions they require people, who’re trained IT, communication skill, soft skills, new managerial concepts and technology.

The current curriculums limit students to only theoretical knowledge, and do not focuses on skill development.

Furthermore, companies in India are looking for domain experts instead of generalist. More often, there are specializations in MBA. But most curriculums fall way short of in-depth knowledge and training in given specialization.

For example, a MBA marketing students should learn digital marketing. But actually in curriculums there is only a book on ecommerce. That’s too limited to theory.


2. Not using digital technology

The world is going digital. All industries have embraced digital.

All world’s top b-schools have transformed digitally.

But b-schools in India are lagging way behind. In the name of digital, they only have website. That too never updated and maintained. And poorly designed and developed. Also, prone to hacking.

Apart from publishing results online, conducting admissions online, and uploading relevant photos. B-schools need to use digital technology for engagement and learning.

Today’s learning starts online, and also ends online.

B-schools in India have to accept this reality as soon as possible. Also they should start investing in digital technology.


3. Not teaching and training digital technology

Now, embracing digital is imperative. But also teaching and training digital to students is highly important for their future.

The world’s major businesses are operating on Internet and Mobile.

Google is the world’s largest company after Apple. Already, Amazon has an annual revenue of US$ 107 billion, which is growing by 20 percent each year.

There are n-number of startups in India that are internet based business such as Flipkart, Snapdeal etc.

Therefore, to make MBA students career future proof, B-schools have to invest in digital training of students.

Following are important digital avenues, where they can conduct trainings:

  • Digital Marketing
  • Website Designing and Development
  • Mobile App Development
  • Cloud Computing
  • Big Data

These trainings have to be theoretical plus practical. And shouldn’t be left to a few days training or to a basic level. These trainings have to core part of curriculum.


4. Less focus on practical and application of theory

What a student learns in MBA course is completely practical and application based.

But, B-schools in India lack of interest in practical part often skips this very important portion.

Moreover, whatever is taught in the name of practical is already outdated. And do not stands relevant in digital world.

MBA students should get opportunity to experience application of theory. From learning risk management in an accounting agency to manufacturing operation in a biscuit factory.

There are simulation software apps that help. But often due to lack of trainers and interest B-schools shies away from it.


5. No focus on IT and Software app training

IT is omnipresent in business world nowadays.

From managing accounting, logistics, CRM to payroll management, lead generation and nurturing. IT and software apps are everywhere, controlling every aspects of management.

But again, lack of IT training at B-schools often limits MBA student’s overall learning.

Even the basic software apps such as MS Office, MS Word, PowerPoint and Tally are not taught properly. Often covering up to basic level only.

B-schools should be providing advance training sessions on these software apps. However, apart from these, B-schools should also focus on covering following platforms and apps:

  • Hadoop
  • SQL
  • Google AdWords
  • Google Analytics
  • Google Drive
  • Photoshop
  • Quickbooks
  • Tally
  • Amazon Web Services
  • Google Cloud
  • Microsoft Azure
  • Microsoft Project

List can go on and on.


6. Less focus on students’ overall personality

B-schools often employs rote learning similar to our school’s education system.

It is this shell; which B-schools need to break free from. Also, the teaching methodology need to change from one-way to two-way communication.

But above all, B-schools need to create opportunities for students to work on their overall personality. Following things can be done:

  • Communication skills development training
  • Teaching foreign language such as French, German, Spanish etc.
  • Conducting industry meetups and seminar
  • Allowing students create unions and groups
  • Conducting sports events
  • Mentoring from industry experts for students
  • Encouraging research and offering funds and facilities for it
  • Developing incubation center inside campus for students’ startups
  • Allowing students to organize events inside campus

These are the few opportunities that a B-school can create for students.


7. Infrastructure – a major issue

Though most B-schools have large lands, and enough space. But often fails in providing quality infrastructure such as auditorium, library, computer library, sports facility, projector enabled classes etc.

Most B-schools in India are not interested to invest in infrastructure or even expand current one.

There are top B-schools in India and the world are developing incubators and accelerators for their students inside campus.

However, low ranking B-schools are far away from this as well.


Watch this video to find out what are the top most sought after skills in 2017 according to LinkedIn.

B-schools in India need to change their strategy and make improvements in time. Otherwise, they will have to put their very existence at stake.

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