The current Indian economic scenario is not very promising. Fragility in financial and banking sectors are major contributors to the economic slowdown. The GDP for the second quarter (FY 2019-20) was the lowest in last six years - 4.5 percent. Where the manufacturing industry grew only by 0.6%, and the agricultural industry saw 2% growth in the last quarter.
The sluggish growth in various sectors is directly related to the education sector. Since such dipping numbers give rise to uncertainty in the job market and affect the placement scenario. Unemployability or lack of jobs is a major worry for students in 2020. And MBA students could be no exception.
An economic slowdown is when there is fragile increase in fixed investment, decline in the growth of private consumption, fall in exports and large number of NPAs. At present the Indian economy is witnessing all the above. It is also affected by political vulnerability and global slowdown due to US Trade wars, EU & Chinese slowdown. Sectors such as automobile, banking, IT/ITES, agriculture, manufacturing, mining, construction, and real estate are under the radar. Some of these are popular sectors that absorb a large number of management graduates.
Current Placement Trends
The current placement scenario is not very bleak. According to a survey by Business Today, the recruitment trends show e-commerce and consulting sectors emerging as significant recruiters. Unlike the traditional streams like banking and FMCG which have seen a decline. Also, there have been reports showing 15 percent rise in the number of companies visiting top campuses and 20 percent rise in stipends during summer placements in 2019. This is a promising sign. Most b-schools are currently busy with placements and are seeing increase in number of companies visiting them.
On the flip side, a major worry is not about getting a placement. It is about starting at a lower salary which will eventually impact the ROI. Lay-offs in the IT and automobile sector are also a bone of contention. Experts say the maximum impact is likely to be borne by three and four-tier management schools and a few two-tier colleges who are unable to train their students as per the latest industry expectations.
Role of B-Schools & Students
In order to tackle the placement situation, students and b-schools can play a significant role. The b-schools can build a rapport with recruiters and help attract them to the campus. In addition, they must aid their students:
- With current industry exposure
- With a strong alumni network
- By offering a wide choice of electives and help them stay ahead of the curve
- With top quality faculty.
The students must aim to get an edge over the others. They must be:
- Well-prepared for industry 4.0 including trends like analytics, big data, IOT etc.
- Able to tap into their alumni network.
- Able to collaborate extensively with faculty members.
Furthermore, the government must provide the required economic stimulus and help get the country on track.
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