Growth Statistics on Engineering and Management Institutions in India

Number of AICTE approved seats for student intake in engineering and management institutions in India grew by nearly 125% and 180% respectively in five years as compared to the growth of economy (Gross Domestic Product-GDP) by only about 50%.

Clearly, engineering and management institutions have grown at a pace much faster than the economy to absorb the talent. This in turn has created a situation of overcapacity, poor quality and unemployability of graduates.

Growth of engineering institutions even outstripped the pace of growth of IT-BPO industry. For example, IT-BPO industry grew by nearly 85% in five years as compared to 125% growth in engineering institutions. Given that many engineering and even management graduates go to high-growth, high-paying IT industry, this sign of overcapacity is troublesome and indicates that industry is headed for a major shake-up and consolidation.

Another troublesome part is that despite the growth of student intake of doctoral seats have not increased proportionately. For example, number of engineering seats in PhD increased by only 20% as compared to number of students to be taught increased by 125%.

Dr. Rahul Choudaha

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