Management education in India is gaining its deserved attention since last two years. The growth in the economy fuelled by reforms, technical and manufacturing collaborations, the advent of more foreign companies, boosting of consumer demands and finally, the gradual shift to the digital world is a clear indication that the corporate sector needs educated Managers like never before to run their day to day business. We saw a similar growth in terms of management aspirants 10 years back with a record number of aspirants taking various management entrance examinations.
Just to highlight 2007 was a year when over 3 lakh student sat for the most premiere Management entrance exam of India. The numbers came dipping as the economy tried coming out of recession in 2010 and the faith on management education took a back seat. The average placements of even IIM’s came down and it was only in 2014 when we saw an upswing in terms of aspirants. One has to clearly understand the direct relationship of Management education with the economy. Simply put a booming economy needs enormous talent as it is fueled by growth and startups and thus comes the need for fresh ideas and a new category of individuals who can make a difference. Let us understand how a dip in economic activity impacts management education and recruitments in our country.
Recession and its effect on the economy
We all are quite familiar with the word of recession. This is the term which denotes temporary slow-down in the financial markets. Due to the recession, every activity in the country slows down. Business sectors get hampered a lot due to such declining position of the financial markets.
Till date, people all over the world have noticed the poor effects of recession several times. We have noticed how markets in all areas come to a standstill. Recession effects badly in the economy and results in unemployment, decline in GDP and also the housing markets become avoidable. The Governments of different countries take separate initiatives so that their country can come out from such poor economic situation. To recover from this, governments are normally forced to take the policies like a decrease in Taxation, supplying more money etc.
Economic Slowdown in 2008
During the year 2008, we have seen a vulnerable economic situation of the world’s economy due to the devastating situation of the US economy. This poor economic situation engulfed the world’s economy and almost all the countries suffered a lot because of this situation. The cause of economic slowdown during this period was mainly because of the insolvency of the banking system in the US. This affected badly on the stock markets and growth of employment everywhere in the world including India.
It is known to one and all that the US is the super power in the world of economy. Hence when the economy of the US suffered from such devastation other countries also suffered from it. India too got affected badly due to such slowdown in economic activities. There are various areas where the Indian economy faced lots of problems. The GDP rate of India slowed down nearly to 6 percent. Most of the Indian Banks and other financial institutions too suffered along with Exports and other services too.
Effect of Recession on Management studies
Recession affects badly on every aspect and the growth of employment also slows down a lot. During the recessionary period, it has also been observed that those who are investing in doing Management programs have suffered huge losses. Those who did graduation during this period got an opportunity in lesser paying companies. It took a longer time to recover the full investment. This recession had also affected badly in terms of the quality of the job. The qualified Management graduates did not got a proper job and many unqualified persons were taken into the companies at a lower salary.
From various surveys, it has been noticed that the new graduates suffered a lot from salary loss and some struggled to even get their first jobs.
How Management Education has regained its position
Over the years since the economic situation all over the world has improved a bit, we can notice the increasing demand for Management Graduates.
The ratio of hiring managers in marketing degree has been enhanced a lot from the last couple of years. This has become possible as the markets, as well as the businesses in all sectors, are moving well now.
The modern day Management classrooms are equipped with most sophisticated teaching aids backed by superior deliver pedagogy ensures that the students have a real taste of professional education. In India, various B-schools are tying up with foreign universities to impart the best in class education to its candidates so that they are ready to take on the corporate sector with ease.
The advent of the digital economy and booming startups have made sure that the recruits draw a handsome amount as their salaries. Needless to say that Management education has regained its top slot as one of the most preferred post-graduate programs for managing the business. Good B-schools are seeing a great hike in terms of average salaries offered and students getting placed at a much rapid pace.
IFBS, rated as one of the best PGDM colleges in Delhi NCR runs an AICTE approved full time PGDM Program and we saw huge number of companies lining at our campus for this years placements.