India is home to 3,500 management institutions, reflecting its diverse and expanding business education sector. Despite this, only a few institutions enjoy global recognition. Among these, just 29 are internationally accredited by AACSB and EQUIS, and only 14 feature in the Financial Times rankings. This underscores a dichotomy between quantity and quality, as many institutions struggle to meet global standards.
Indian business schools operate in a competitive market, with top-tier institutions remaining highly selective. Nearly 3,29,000 applicants vie for about 10,000 seats annually at premier institutions like the Indian Institutes of Management (IIMs). Historically, these schools had little incentive to seek global accreditation or visibility. However, globalisation has made international recognition crucial for their credibility and growth.
Evolution of Indian B-schools
Management education in India began in 1953 with the establishment of the Indian Institute of Social Welfare and Business Management in Calcutta. This was followed by IIM Calcutta and IIM Ahmedabad in 1961, supported by the Ford Foundation in collaboration with global leaders like MIT Sloan School of Management and Harvard Business School. These institutions laid the foundation for India’s management education sector, with other IIMs established in Bengaluru (1973), Lucknow (1984), Kozhikode (1996), and Indore (1998).
By 1991, India had 130 approved management institutions with an annual intake of 12,000 students. Today, there are over 3,500 business schools, including 22 IIMs. Economic liberalisation in the 1990s fueled this growth, creating demand for skilled management professionals. However, this rapid expansion has not translated into global competitiveness, with only a few institutions gaining international recognition.
Accreditation and Quality Assurance
The demand for professionals with cross-cultural skills highlights the need for Indian B-schools to align with international standards. Accreditation by AACSB or EQUIS requires fulfilling stringent criteria, such as having at least 50 per cent of courses taught by research-active, permanent faculty. Many institutions struggle to make the necessary investments in faculty development and research infrastructure.
Tech Disruption
Digital learning platforms, including MOOCs, are disrupting traditional business education. To remain relevant, Indian B-schools must integrate technology into teaching and adopt hybrid models of education.
Industry alignment
Industries’ rapidly evolving needs require B-schools to regularly update their curricula and pedagogy. Many institutions lag in this area, producing graduates who are often ill-prepared for the workforce. Bridging this gap is essential to improving employability.
Rankings and Perception
International rankings, such as the Financial Times and QS World University Rankings, prioritise metrics like diversity, collaboration, and research output. Indian B-schools often fall short in these areas, limiting their global visibility. National rankings like NIRF emphasise research and perception but neglect employability and industry relevance.
The Need for a Global Platform
To overcome these challenges, Indian business schools require a reliable, globally recognized quality indicator aligned with international benchmarks. One promising approach is the development of independent evaluation frameworks that assess institutions based on rigorous quality standards. By engaging in such processes, Indian schools can enhance their visibility, attract international students and faculty, and foster global partnerships.
Benefits of a Global Evaluation Framework
Global Visibility: Showcasing achievements and strengths to position institutions as competitive alternatives to foreign schools.
Collaboration Opportunities: Facilitating partnerships with international universities and corporations for joint programs and research.
Enhanced Student Outcomes: Attracting top-tier students, reducing brain drain, and improving graduates’ career prospects.
Moving Toward a Globally Competitive Model
Despite the explosive growth of business schools in India, only the top 100 institutions are competitive on a global scale. Many others struggle with basic quality standards, resulting in an inadequately prepared workforce. Participation in structured evaluation mechanisms could catalyse change by encouraging peer learning, sharing best practices, and driving continuous improvement.
Global visibility can also help achieve broader policy objectives, such as promoting internationalisation and attracting foreign universities to establish campuses in India. By fostering a robust ecosystem of globally recognised business schools, India can emerge as a leading destination for management education, driving innovation and contributing to economic growth.
Conclusion
India’s business school sector is at a pivotal juncture. While it has achieved significant growth, challenges persist in quality assurance, industry alignment, and global competitiveness. Engaging with rigorous evaluation frameworks such as THE Business School Register can provide the momentum for transformation, enabling Indian institutions to achieve global recognition and retain domestic talent. By embracing these opportunities, India’s business schools can unlock their full potential and cement the country’s position as a global knowledge hub.
(Chattopadhyay is Director, IMT Ghaziabad; Stevenin, Director, Business School Solutions, Times Higher Education; and Singh is Director, Athena School of Management)
