Indian MBA Bubble Bust?

Is the great Indian MBA bubble busting? 134 business management institutions in India had submitted applications to AICTE for closure (Indian regulator for management and engineering programs). One of the major reason is low enrollment number of students which in turn reflects poor quality of programs and employability potential for students. (Here is my earlier post on B-schools Bubble ).

There are also many institutions which are not approved by AICTE and facing challenges of financial sustainability and growth. For example, Mumbai Business School closed within three years despite having some big names associated with it. The official noted “We were not able to generate the operational cashflow and capacity utilisation was below the mark. So we decided to down the shutters.”

Many institutions started in last five years without AICTE approval, blaming its bureaucratic process and restrictive rules on academic and financial operations (Here is the list of institutions conducting technical programme without AICTE Approval). There were institutions which were inspired by the success of ISB to build a quality B-schools and then there were many who were inspired by IIPM to make big money from business of business education. Both, ISB and IIPM, despite being on two ends of the quality spectrum were not approved by AICTE (ISB is first and only B-school in India with AACSB accreditation but it does not has approval by AICTE). This is how AICTE started losing its relevance and teeth in assuring quality of MBA programs.

It is high time that Indian B-schools start realizing the importance of investing in quality to ensure their long-term sustainability. Likewise, AICTE had been trying to get its act together but still has a long way to go before it become effective and responsive for ensuring quality in management education.

Related posts:
Wake up IIMA: Lead the quality tranformation in Indian management education
Need of self-regulation in Indian B-Schools to improve quality

Dr. Rahul Choudaha

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