According to a study by the Associated Chambers of Commerce and Industry of India (Assocham), which represents over 450,000 business entities, only 7% of the graduates passing out of Indian business schools today are actually employable.

Implying that most Indians MBAs are good for nothing.

The study says that with the exception of the elite Indian Institutes of Management (IIMs) and the top 20 ranking institutions, most of India’s 5,500 B-schools produce “un-employable” graduates. And they land up in jobs if at all that pay less than Rs 10,000 a month.

“Lack of quality control and infrastructure, low-paying jobs through campus placement and poor faculty are the major reasons for India’s unfolding B-school disaster,” Assocham explained.

This overall drop in quality is taking a toll on salaries and placements. In the last two years, Assocham says, campus recruitments have dropped by 45%—and salaries are falling.

A typical two-year MBA programme in India costs between Rs3 lakh and Rs 5 lakh  on an average. But the current average monthly salary for MBA grads is anywhere between Rs8,000 and Rs,10,000, according to Assocham. That translates into an annual pay of Rs 96,000 to Rs 1,20,000.

That, most MBAs would concur, is not much bang for your buck.

 

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