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Higher Ed Bubble Correction

In Indian B-Schools:

The Indian management education sector grew so wildly when demand was rampant (today there are 3,900 management schools with close to 3.5 lakh seats) that supply overshot demand by a long straw. And now comes the fallout.

In a dramatic, though not entirely unexpected, development, as many as 65 business management colleges across India are planning to close down; these institutes no longer see business sense in offering an MBA course, preferring to use the land for more lucrative ventures.

This is the kind of correction you’re supposed to get when you mismatch offerings to the market.

Posted in Economics.