New Delhi: Increasing government intervention could have a detrimental effect on the efficiency and productivity of the IIMs, with their financial and intellectual strengths being compromised.
A Survey conducted by the Education Council of Assocham on “Viability of IIMs with increasing governmental interference” had 200 management experts participating with 90% calling for immediate withdrawal of Human Resource Development Ministry’s representations in these institutes of excellence.
85% respondents felt that IIMs should have the liberty to manage their fee structures and number of seats. Also that each year government in collaboration with concerned states should open up at least two IIMs to meet the growing demand of aspirants who wish to make management a part of their career.
CEOs felt that leading IIMs like Bangalore, Ahmedabad, Kolkata and Lucknow should not accept any budgetary allocations in terms of central and state’s grants to ensure a space for government nominees in their management.
The overwhelming majority of management experts argued that it cannot be possible that IIMs seek central allocations and at the same time deny them space in their governing body, which will only influence their decision making.
65% CEOs blamed sickness and accumulation of non-performing assets in state owned companies, purely because of government representations in them, which in the past influenced the PSU’s board decision to suit the requirement of vested interest in politics.
65% of management experts felt that this practice ought to end so as to restore autonomy to the board of governors at the IIMs and encourage quality and content wise research in these institutes.
The survey findings pointed out that 80,000 to 90,000 students go abroad for higher studies with each one incurring an expenditure of Rs.15 lakh per student. The foreign exchange outflow is more than Rs 10,000 crore which India can retail with itself and make use of while adding on to existing IIMs.
Unfortunately, government continues to subsidise IITs and IIMs by pumping in Rs17,000 crore for creating necessary infrastructure to accommodate 54% increase in existing IITs, IIMs and central educational institutions. With this taxpayer money, most students join multinationals in India or abroad and hardly use the domestic talent for enhancement of its GDP.
Deregulation of IIMs and IITs from government cotnrol will not only make management education more quality sensitive but also expand their capacities to accommodate a larger number of students.