BackWhy subsidize IIM education, asks R.C. Bhargava
Chairman of Maruti Suzuki India says situation should be created for investing private capital in establishing high quality B-schools
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New Delhi: R.C. Bhargava, chairman of Maruti Suzuki India Ltd, on Wednesday raised question about the current practice of subsidizing quality management education in institutions like the Indian Institutes of Management (IIMs) at a time when many of their students are not preferring to join the manufacturing sector.
“Perhaps we could legitimately ask as to why the best management education should be subsidized or whether a situation can be created which would enable private capital to be invested in establishing high quality business schools," Bhargava said at a conference organized by All India Management Association (AIMA) in New Delhi.
He said manufacturing and industrial growth would be better achieved if India’s brightest minds and best-educated managers drive manufacturing enterprises in India. The manufacturing sector accounts for around 15% of India’s gross domestic product (GDP).
“The top business schools, which include IIMs, attract the cream of our young men and women. They are designed to provide quality education to their students. The government has established the IIMs, and a large amount of taxpayers’ funds have gone into them. However, most of the output of the IIMs seek jobs in financial services, IT, and consultancy. Quite a sizable number take well paying jobs in foreign countries," said Bhargava, who is also chairman of the board of governors
at IIM-Ranchi.
“The situation is the same with the best private business schools. Manufacturing companies don’t find favour among the students of these schools. This situation is not consistent with the national objective of giving priority to the manufacturing sector," he said.
India has 13 IIMs and they charge between Rs8 lakh and Rs16.6 lakh for their two-year flagship post-graduate programme in management. In the recently concluded placement season, financial services and consulting firms were the top recruiters.
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