Rajnish Kawale, a 27-year-old mechanical engineer from Nagpur, represents a growing number of professionals seeking an MBA to pivot their careers. After serving as an operations manager at a power station, Kawale aimed for a shift into marketing and brand management. However, he discovered that landing a lucrative job through campus placements was more challenging than anticipated. “Companies visiting our campus do not offer high packages; those are reserved for top-tier institutes like the IIMs,” he noted.
With a two-year course fee of Rs 12 lakh and a Rs 10 lakh loan, Kawale expected a salary package of at least Rs 15 lakh per annum. This experience highlights a larger issue facing MBA graduates in India: a disparity between salary expectations and actual offers.
A Shifting Job Market and Economic Realities
According to Father S. George, director of XLRI, Jamshedpur, job market fluctuations over the past two years have affected compensation. While some students secured high-value packages, closer examination revealed that up to 60% of these packages included conditional bonuses. The dip in overall pay reflects a broader slowdown in global economies.
Professor Debashis Chatterjee of IIM Kozhikode attributes this to multiple factors, including the emergence of generative AI. This shift has streamlined business operations, leading to fewer outsourced roles and lower salaries. “The economic capacity of the Indian job market doesn’t mirror that of developed economies like the US,” he said. Similar sentiments were echoed by Professor A. Venkat Raman from the University of Delhi, who cited the ongoing recession in Europe and the US as key influences on job availability and salary stagnation.
Challenges in Securing Placements
While top institutes generally maintain placement rates, many management students face immense pressure in securing desirable positions. Industry consolidation has limited job growth, and students’ expectations often exceed practical career paths. As Professor M.G. Jomon of XLRI observed, many young graduates aspire to rapid seniority without starting from entry-level roles, a mindset that can hinder long-term career development.
The Impact of AI and Technological Advancements
Advancements in AI and other technologies are reshaping the educational landscape and job market. Professor Nagaraj from SP Jain Institute of Management highlighted a shift in learning practices, noting how students now turn to AI tools like ChatGPT for simplified answers. This trend challenges traditional teaching methods, emphasizing the need for practical and experiential learning. “Oral and experimental teaching helps students address real-world problems,” said George of XLRI.
Curriculum Innovations and Industry Alignment
Business schools are increasingly aligning their curricula with industry needs, incorporating courses in AI, business analytics, and digital literacy. Venkat Raman from FMS stressed that the Indian MBA curriculum should reflect societal and cultural nuances, moving beyond Western strategies. This adaptation is necessary for developing future leaders who understand local business environments.
The Importance of Adaptability and Skill Development
Amid these changes, adaptability and continuous learning are essential for graduates. Professor Chatterjee of IIM Kozhikode pointed out that uncertainties—from geopolitical to technological—require ongoing skill enhancement. “Survival now depends on adaptability, both at individual and organizational levels,” he said. Institutions are focusing on integrating new teaching models, such as simulation-based learning, to equip students for complex, real-world challenges.
Industry Voices on Skill Gaps and Future Directions
Industry leaders have shared insights into the evolving needs of employers:
- Bhishm Chugani, SPJIMR, noted that startups may still recruit from top schools as a strategy to attract investors despite limited budgets.
- Swadesh Kumar Singh, GNIOT Institute of Management, highlighted the importance of digital literacy across all organizational levels.
- Professor Veena Vohra, NMIMS, emphasized integrating research findings into the curriculum to foster critical thinking and resilience.
The Way Forward for Indian Business Schools
To meet future challenges, business schools must adapt their teaching strategies, focusing on case studies, simulations, and technology-based courses. Institutions like SP Jain have started implementing concise case studies to prevent reliance on AI summaries. “Reading and analytical skills are more critical than ever,” said Nagaraj. Continuous updates to curricula and teaching practices will ensure students are prepared to face the market’s dynamic nature.
Conclusion
The path for Indian MBA graduates is marked by both challenges and opportunities. While economic and technological shifts present obstacles, they also push for innovation in teaching and learning. Emphasizing adaptability, practical skills, and industry-aligned education will prepare graduates for a competitive and evolving job market.
