MBA education bubble

More MBA colleges are closing shutters all over the country now. According to reports, as many as 95 management colleges are shutting down across the country.

In Rajasthan alone, 34 private B-schools affiliated to Rajasthan Technical University (RTU) are closing due to lack of admissions. Last year, almost 6,000 seats were vacant. The year 2012 saw the forced shutdown of 19 management colleges due to poor student response.

In Andhra Pradesh, 37 management schools are closing this year, whereas in Uttar Pradesh, 13 institutes will be closed. Reports of more than 50% unoccupied MBA seats in Maharashtra’s management colleges are also doing the rounds. Recently, a national daily brought out that about 46,000 MBA/ MMS seats are likely to remain empty in 2013 due to low enrolments.

Experts have been warning about the bursting education bubble, with more institutes mushrooming all over the country, unsteady job market and fewer candidates enrolling for MBA programmes.