What does PGDM mean in school

India: Less interest in the MBA

The number of Indians taking the Common Admission Test (CAT) has fallen significantly. Only 200,000 more want to take the admission test this year, which is considered to be harder than the GMAT and is a prerequisite for a place at the top schools in the country. In 2008 there were 276,000. Experts see the reason for this in the worsening economic situation.

For many Indians, the decision is apparently clear: Better to start a job now than complete an expensive management degree with uncertain career opportunities. After the boom years, India's economy cooled significantly. Instead of economic growth of eight to nine percent, this year only 5.5 to 6.5 percent are expected.

The demand for an MBA degree has been enormous in recent years. There were up to 200 applicants for a place at the prestigious Indian Institutes of Management (IIM), the number of which has increased from seven to 13 in recent years. The state and independent IIMs are considered to be the best management schools in India. However, they are not universities and therefore do not award an MBA, but a Post Graduate Diploma in Management (PGDM), which is considered the equivalent of the MBA.

Between 2006 and 2011, the number of MBA graduates in India rose by 300 percent and there are now at least 4,000 business schools with around 500,000 students. However, some are already facing closure again because they have too few students.

According to a report by the Mint Newspaper, all top schools now have fewer applicants. While 102,329 applicants completed the school's Xavier Aptitude test at the XLRI School of Business in Jamshedpur in 2009, it was only 60,316 in 2011.

The number of Indian participants is also falling in the GMAT (Graduate Management Admission Test), which is required as an admission test at over 5000 business schools worldwide. In 2009 there were 30,633 Indians, in 2011 only 25,394 Indians took the test. US schools in particular suffered a decline. In 2007, 67.3 percent of all Indian GMAT participants applied to a US school, in 2011 it was only 54.7 percent. At the same time, there was increasing interest in schools in Asia, especially in India, Singapore and Hong Kong.


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About Bärbel Schwertfeger

Bärbel Schwertfeger is a graduate psychologist and has been working as a freelance journalist in the field of management, further training and personnel development since 1985.