A Challenges and Serious Concern of Business School of Management Education in India


Sandeep Kumar R Pandya1, Dr. N. D. Shah2

1Research Scholar, Gujarat University, Ahmedabad

2HOD, Principal, M. C. Shah Commerce College, Ashram Road, Ahmedabad

*Corresponding Author Email: ajaytrivedi34@gmail.com



The main goal of this article is about the historical development of management education in India learn and their main problems and ensure to study. There are many changes in the operation of the industry due to globalization, privatization and liberalization. Of course, industries around the world are obliged, have multi skilled workers, rather than only as a knowledge-based workforce. Western B-schools are even forging and changes to their programs according to the demand of the industry. Now is every day more and more student-centered learning. Brand strategy has made its way in the management training. Top schools B alternate content and delivery methods. Schools, is also essential for Indian Science sets the context for management education. On this basis, it is equally important to address the various issues and concerns relating to the administration of the Indian education in the course of time.


KEYWORDS: All India council for technical education (AICTE), Association of Advanced Collegiate School of Business (AACSB), National Knowledge Commission (NKC), National Task Force (NTF), Management Education Entity (MEE), Proliferation.




Business education in the 2010s has liberalized the Indian Government, which offer a rapid growth of business schools that graduate programs and has done Bachelor's level. Indian B-schools are almost a copy of the US business education in particular in the area of education, curricula, industry interface and scientific models, but it is observed that Indian B-schools fight hard to several changes due to the Introducing differences in the operating system culture. This made Indian business education prior to several problems in the field of academics, development of infrastructure and financial support. Govt of India appointed various committees had a critical review and over all growth of business education in the country.


Due to the intense competition at the global level, many changes take place in the industry. In turn, there is a need, the changes in the educational system companies all over the world. India is no exception. but the pace is very slow. Now, the time has come to take a detailed test report and examine the various challenges and issues that are faced by these business schools to improve the quality of management education in the country.



Commercial training has a long history in India, from the 19th century. Early business schools focused on the commercial side of the business, trying to meet the needs of the British Government.

·      India's first B school i.e. commercial school of the Pacchiappa Charties was set up in the southern city of Chennai (Madras) in 1886.

·      In 1903, British Government initiated secondary level trade classes at the Presidency College in Calcutta with a focus on secretariat, business communication, short exercise HAND, typing, correspondence and accounting.
o of the first college-level business school was founded in 1913 in Mumbai i.e. Sydenham College.

·      As soon followed by another University in Delhi in 1920 as a Commerce College, later renamed ShriRama College of Commerce.

·      The Indian Institute of social science-founded in 1948 as India's first management program with the intention, the manpower training to create and disseminate knowledge for the management of industrial enterprises in India.

·      Catholic parish founded in 1949 Xavier labour relations Institute (XLRI), Jamshedpur.

·       Indian Institute of social welfare and business management (IISWBM) was in 1953 in Calcutta set up. This was India's first official Management Institute.

·      Egged on by the results of the Indian Government applied for and receives grant from the Ford Foundation in the year 1961, two 2 Indian Institute of management, Calcutta (West Bengal) and others in Ahmedabad (Gujarat) to start. This grant was American business education to other Nations to help knowledge and models and the intensive cooperation with an American B-schools to facilitate the transfer of learning in the heart.

·      IIM Calcutta founded in cooperation with the Sloan School of management (MIT) for faculty and education development in 1961, with the intention, focus on quantitative and operational aspects of management.

·      IIM Ahmedabad was founded in 1962, pioneer of the case method of teaching in India with a focus on qualitative strategic integration.

·      The Mission of IIMs Indian management education through teaching, research, training, designed to professionalize building institutions and consulting with support of the competence of the groundbreaking IIMs.

·      Two other IIMs in Bangalore (Karnataka) and others were founded in Lucknow (u.p..) in 1973.

·      That of forest management was Institute Indian in 1982 in Bhopal (M.P.) as a leading provider of specialized management training for the entire forestry system in India with the help of IIM, Ahmedabad.

·      In the late 1990s, Setup, in Kozhikode (Kerala) and on the other hand in Indore (M.P. were two more IIMs.

·      Growth both in numbers and status has occurred during the 1990s. Entered a large number of multinational companies in India. Domestic companies also followed by multinational companies compete. Companies found that graduates from Commerce stream far behind the requirements of leadership in a competitive world fell. They had good knowledge of accounting but lacked necessary marketing, finance and operations



There are 1800 + B-schools in the country. A large number of universities and colleges from not only the US and UK, but also from Australia, Ireland, Canada, Russia, France, Germany and Singapore in India have very active since the beginning of the new millennium.


The following table shows a growth of B-Schools in the country since last 67 years.


Table – 1. Growth of B- Schools in India during 1950 – 2017.

Sr. No.


No of B- School Added

Average Annual


1950-1980-30 years




1980-1995-15 years




1995-2000-05 years




2000-2017-17 years



Source:  Dayal Ishwar, ‘Developing Management Education in India’, ‘Journal of Management Research’ 2 August 2017 P.101.2002. (The figures attributed for 2000-2017 as per AICTE data)2.


In the early 2000s showed a boom of the founding management schools, most of them are in the private sector. Some B-schools were founded also in cooperation with several Western universities. Management education in India is in the process of change. Two current developments sweeping India, liberalization and globalization had significant impact on management training. Today there are 1800 + B - schools in the country, distributed in various States of India, shown in the following table.


Table – 2. State-wise distribution of B-Schools in India.

Sr. No.


No of B- School



Andhra Pradesh




























Madhya Pradesh




















Tamil Nadu




Uttar Pradesh








West Bengal











* Others: Himachal Pradesh, Assam, Chhattisgarh, J&K, Manipur, Meghalaya, Goa.

Source : AICTE Hand Book, Year 2016-20173


All these B-Schools are approved by All India Council for Technical Education (AICTE) in various categories, including IIMs University Departments and Autonomous Institutes.



The present is as follows, it is divided into six categories.

1.    Indian institutes of management (IIMs) Setup by the Government of India.

2.    Faculty of management studies, distance, correspondence and part-time courses as well as.

3.    Universities and institutes at universities affiliated to.

4.    Private or Govt institutions of all India Council for technical education (AICTE) approved.

5.    Private institutes and colleges spun no universities are approved by AICTE not.

6.    Private universities or institutes offering MBA courses in India in collaboration with foreign universities, where 4 degree and diploma are awarded certificates by the foreign universities.


Now a day, has become learning centric students. Branding has accelerated management training. Top B-schools change continuously the content and delivery types. It is also essential that Indian B-schools constantly strive, management training context specific make. But the current proliferation of B-schools raises a serious question on the quality of management education. Where is the land left by B-schools this proliferation? What are the quality of the Manager which arise in this B-schools. This sudden proliferation has led to a significant decline in the quality of management education.


The best is not the best international in India. The IIMS particularly Ahmedabad, Calcutta, Bangalore, Lucknow have consistently ranked among the top of most polls have been. This B-schools rank in India and Asia Pacific, but when they are compared to global rankings, they appear not in top 100 B - schools in the ranking surveys of business week, financial times and Forbes. Even Chinese B - surveys schools figure among the first 40 in this 5.


International accreditation by the Association of advanced Collegiate School of business (AACSB, U.S.A.) or the European quality system has currently no Indian B - school improvement. But before recently management development institute (MDI), Gurgaon (Delhi) is accredited by the Association of the United Kingdom (AMBA) makes the first B-school to get an international accreditation.


The key ingredients to a world-class B-school considered

1.    Faculty commitment to teaching and research excellence.

2.    Dedicated professional staff, to understand the higher education.

3.    Quality of students admitted.

4.    Financial resources and

5.    Leadership of the deans and directors.


If any of you lacks world-class B - school is almost impossible. On the basis of the waiver of the discussion about the weaknesses and ill functioning of the B - schools and to diagnose their quantitative growth at the expense of quality. Govt of India has appointed time to take a critical review of management education in India various committees. To implement various corrective measures. The National Commission for know (NKC) the country was founded by Prime Minister of India in the year 2005. The Commission had "a working group for management training, chaired by Prof. S. L. Rao.


This group had since 2010 and together with the existing State of business education in India as referred to various reports on management training.


1.    Kurian Committee Report - 1991.

2.    Ishwar Dayal Committee report - 2001.

3.    The Education Review Committee report - 2003.

4.    U. R. Rao report about the faculty development program - 2004.

5.    All India Management Association (AIMA) certificate in 2005.


After passing through the various reports and existing State of business education in India, the Committee has noted that some challenges for E.g. faced is the Indian management training.

1.    India produces a large number of graduates, perhaps in addition to the United States, but is still a scientific debate about curriculum pedagogy and innovation is negligible.

2.    The most institutes depend on developed curricula and materials elsewhere and not intrinsic ability to respond to and changing needs of the various sectors of the industry to develop.

3.    Many institutions are not yet able to imposed mandatory changes such as updating the Curriculam of the universities or the Board of management studies to meet.

4.    Management institutions in India are today estimated to be approximately 1 Lac (+) students annually study be. However, what proportion are the total requirements for the increasing more expensive graduates in management and what proportion would be on the less expensive lower levels of Manager is not yet clear. Again, there is a need, the number of currently 1 Lac (+) managers with approx. 3 Lacs (+) managers a year in the next 10-15 years.

5.    With the opening of trade and cross-border movement of goods and services of the country needs a paradigm shift in the management education and management training for professionals.

6.    Currently management education is treated as a Sub Department of engineering of AICTE -, rather than recognizing that the management itself. The Working Group recommends a completely autonomous Board of Governors for management education7.



However, the number of committees on management education have suggested improvements. Still, there were no significant changes in the management education with the exception in the top-ranking B-schools. Now the time come to examine the major problems, which are addressed, if at all, education does need to improve in India as the today's managers can respond to the challenges of global competition.


Focal lengths: -.

1.    To ensure faculty quality.

2.    To promote research culture.

3.    Faculty development programs.

4.    Develop reading material for Indian context relevant.

5.    Cooperation with the industry to develop.

6.    Develop an appropriate system of accreditation and rating.

7.    Build of an independent institutional mechanism.

8.    Corporate governance of B-schools.

9.    Should the specialization to expand.

10. Create a global mindset.

11. Internationalize the management training.


To ensure faculty quality:

Due to the sanction of the large number of B-schools by AICTE led to lack of qualified teachers. Current number of faculty members without Ph.d. and research are background. Indeed at the University is UGC Ph.d. level or NET/SET as an essential qualification when selecting a college or a University. But due to the shortage of faculty in management only a master's degree was enough, to a member of the Faculty in B schools.


In selection process industry experience a special weighting has been but due to shortages of the faculty, the experience is judged as correct in some cases. In addition AICTE to develop machinery and train the faculty to teach management courses with an applied basis. It is also observed that some institutions Partime engage faculty or to call on a contractual basis where a little engagement with the institution or the students they have.


Newly affiliated faculty members only lecture methods and theoretical and conceptual provide participants rather than brainstorming or its application.



New members of the faculty without experience cannot wrap, the research or the development of teaching materials and supply only the lectures, drawn mainly from the textbooks.


To promote research culture.

The institutions have no culture, which supported the research. To absorb a research culture, requires a good library support system. Scientists should be encouraged to, conduct research in certain areas of national interest. With regard to the grant procedure research, there is a need to support more on individual project proposals. Encourage you, those institutions, the corresponding support system, Ph.D.-program to start.


Is a new development of management discipline, there is a lack of Ph.D. guide and therefore who like to track are degrees for research forced to register for their doctoral degree under the Faculty of Commerce. This research often are leaders in this area not able to run candidates in the area of management.


Faculty development programs:

To make good teachers for B-schools, development programmes must be implemented on a large scale the faculty. Currently, the teachers in the B. Schools on a trial and error prepare based on cost of today's generation of students, who are the real sufferers. Before recent AICTE informed Management Institute at their faculty members faculty development programs at depute pull among the selected few centers, but it is also not sufficient. This requires a further 5-10 to get years period to trained personnel with this system. Again, the FDP programs implemented at the institutional level are also not sufficient they and range in their quality. This activity is implemented as a part of the formality and conditions of the AICTE. This scheme must be implemented at the regional level in fact across the country with the help of top-ranking B-schools.


Develop reading material for Indian context relevant.

It will be observed that the ideas and concepts, apply in their countries of origin but in the Indian context have been less effective. So also the management practices in industrialized countries adopted still this exercise by means of systematic research and study are in perfect harmony with their culture and tradition, where, as India has to do. The materials are non-specific or Indian context relevant. There are only a few B-schools in India, now they have started focusing on research to prepare reading material for Indian context relevant namely ICFAI, Hyderabad, MDI, Gurgaon, XLRI, Jamshedpur and Wellingkar, Mumbai.





Cooperation with the industry to develop

Except in the case of top-ranking B-schools, there are no mechanisms to the close relationship between B-schools and industrial forging group. The main strength of the top class B-schools like Wharton, Kellog, Sloan and Harvard is their strong relationship with industry through teaching, research, student placements, problem solving and case study preparation. In India, so this happens when low rank B-schools in the country, institutional mechanism for the development of cooperation with the industry in every B-schools should be available.


Develop an appropriate system of accreditation and rating:

In Indian management education it is one of the emerging issues is to identify the process to be adopted for implementation of an accreditation system. The accreditation has to be fair, transparent, independent as well as ruthless. The rapid growth in number of management institutes require a specialized body rather than the all encompassing AICTE to carry out accreditation. Infact a council, exclusively for management education is required and the process of accreditation and recognition need to be made separate. Recently the (NKC) National Knowledge Commission has recommended rating as an additional measure to inform the students, the parents and the public of the Quality of Management education entity (MEE) because of mushrooming growth of schools in India. Many of which do not meet even the minimum requirements for the acceptable Quality. By requiring disclosure of information on rating a great service will be performed to all stake holders including students and recruiters. Hence, the group has recommended that all MEE must have mandatory rating.


Build of an independent institutional mechanism:

There are too many agencies deal with management education. Management education must be a concern of the body created by law for Governing management education I.e. The All India Council for Technical education and its subsidiary. The Board of management studies Combining the technical and management education under one body was a mistake. A National Task Force (NTF) on Management education should be appointed. All India Management Association is of the opinion that there is a need of formation of All India Council for Management Education Quite independent of AICTE.


Corporate governance of B-schools:

As indicated by S. L. Rao, a major weakness is the lack of a Corporate Governance system in B-schools. This issue needs careful Consideration. There is a need to have independent Directors as well as to implement independent Audit Committee for managing the B-schools. The B-schools should become process driven. Corporate governance has to be made an element of accreditations. Faculty development as well as faculty involvement in the administration needs to be a part of the Corporate governance agenda. Issues like Qualifications of faculty members, Size of libraries, and other academic as well as infrastructural facilities must also become a part of governance


Should the specialization to expand:

There are some businesses which are Context specific to India. e.g. agricultural services, infrastructure management, Contract research, hospital management and NGO are rapidly growing areas in business. These business need customized management education. Curricula customization, Specific material development and faculty specialization are some of the neglected factors that led to poor Quality of management education in India. No doubt some of the B-schools have introduced MBA, program, focused on telecom, financial services and infrastructure management but still it requires more efforts on customization in order to broaden the Specialization.


Create a global mindset:

This is an era of globalization. The industry needs leaders with world class talent. The question is to inculcate such a global way of thinking by the Manager, to act locally. The survey conducted by Andrews and Tyson as brought some problems.


1.      In the changing economic scenario globally is the important issue to create executives with management and leadership competencies on a global scale. According to the study, was a shift in companies in the recruitment of know skills attributes.

2.      Internationalization of the business makes it necessary to have different skills and sets. The idea is, that schools must economists culture know cross and know-how, constantly won the support are an important goal and marker has for the achievement of many professional schools.


Internationalize the management training:

As the business is global, day after day, always there is a growing need to the institutions (B schools), global produce Manager. So it has become necessary that the Indian management training should be global. The response to the globalization of the economy is the globalization of management training.


1.    The business schools have to admit international students of the programme. The Indian management are the only without the participation of international institutions.

2.    The B-schools should introduce a few international schools and offer the opportunity to listen to the students about the culture of the other country and systems.

3.    The B-schools, an active program of student and faculty should exchange with advanced countries.

4.    In order to ensure that at least 25% of the curriculum deals with international issues as international economics, international marketing, international financial management, or international business management etc.

5.    Indian B-schools should can work with some well-known foreign B-schools, by the Indian students part of their training in these institutions do.

6.    Finally, B-schools with some foreign placement work consulting firms, to ensure that at least some students can get jobs abroad.



As we are in third millennium, India’s Management education is undergoing a major transition. Internationalization, cross cultures, strategic alliances, partnership and mergers are the new trends in management education. But Compared to US and Japan where do we stand? One of the important reasons of Japan’s Climbing to the top ladder of Industrial world is that they believe in “developing people before developing products,”8 Indian management education has to think in this direction.



1.     Bowonder and S.L. Rao, Management education in India its evolution and some contemporary issues, AIMA/CME 2015

2.     Dayal Ishwar, developing management education in India, Journal of management Research 2, August 2016 P.101

3.     AICTE Hand Book year 2016-17

4.     Rao S.L, Report of the working group on management education formed by National Knowledge Committee, 2015

5.     Vipin Gupta, Kamala Golakota, Ancheri Sreekumar, Quality in Business education: A study of the Indian context, A paper presented at conference held at Atlanta 7th Nov. 2013

6.     AACSB International, The value proposition for Business Education, CIME Task force report; Ethics Education in Business Schools, 2014.

7.     Ajay Kumar Penthoi and Dr. Sankarashan Dash, Indian Higher Education in the Era of Globalization: Challenges and Quality management strategies, University News, Dec. 2015

8.     GFM, The Global Management Education Landscape, Shaping the future of Business Schools, 2017







Received on 13.10.2018       Modified on 11.11.2018

Accepted on 16.12.2018      ©A&V Publications All right reserved

Res.  J. Humanities and Social Sciences. 2018; 9(4): 859-864.

DOI: 10.5958/2321-5828.2018.00143.2