Why are PGDM Colleges Closing in India? Over 40 colleges offering post-graduate diploma in management program (PGDM) have closed down in the country in 2012-13 and around 65 colleges offering PGDM closed in 2015-16. Overall, in the last five years, 250+ PGDM colleges and other Management Programs like MBA have completely closed their business.
In South India, apart from Kerala and Tamil Nadu, in all other states, every year at least one college offering management courses at the postgraduate level is closing business, as per the record and evaluation by the All India Council for Technical Education (AICTE). In the capital, New Delhi, various PGDM Colleges closed down their institutions including the prominent Era Business School, which was later sold to SREI Group, which eventually closed it completely down, only in two years of operations.
The reasons for the closure of PGDM Colleges vary from poor quality institutions, that are more interested in minting money from gullible students and not really focused on providing quality education. Ramesh Unnikrishnan, Director, AICTE says the trend has been on for five years. “Parents are very particular now about the institutions where their children get admitted,” he said.
Rahul Singh, a PGDM student says “it is very important to choose a reputed business school, which has been in operation for a minimum of 10 years and has strong brand value in the entire country. My business school closed down in just 4 years of operation and my degree is literally invalid.
Explaining the cause of closure of so many PGDM colleges, Prof. Subramanian says that business schools are opened with a clear aim of making money, but the quality of education is literally terrible in many of these institutes.
One of the reasons for the closure of PGDM colleges and mushrooming of new colleges is that management institutes require less investment compared to launching engineering colleges. A PGDM College requires around five classrooms with 6 academic staff, so new colleges are mushrooming and unsuccessful ones are closing down, jeopardising the career of students.