CEO speaks: The Third Largest Economy: India’s Growth & the Future of Management Education

As India marches towards becoming the world’s third-largest economy, the career prospects for BBA and MBA graduates are poised to experience an unprecedented surge. This dynamic growth presents a golden opportunity for management graduates, whose expertise will be pivotal in steering both the Indian and global economies forward.

Let us look briefly at the figures. The Corporate Recruiters Survey 2022 by the Graduate Management Admission Council (GMAC), USA indicated that 92% of companies globally planned to hire fresh MBA graduates. In India, the India Skills Report 2023 highlighted that management and commerce graduates are among the most employable, with an employability rate of around 60%. As per AICTE, the demand for management graduates in India is expected to grow by 10-15% annually over the next decade while as per the Bureau of Labor Statistics (BLS) in the United States, the employment of management analysts (including management graduates) is projected to grow 14% from 2020 to 2030--much faster than the average for all occupations.

So what is fuelling this incredible demand for management graduates, specifically in India? India’s economic landscape is undergoing a transformative shift, driven by several key initiatives and factors that promise robust growth and innovation. Technological advancements and innovation, driven by AI adoption, are at the forefront of this economic revolution. From automating routine tasks to enabling sophisticated data analysis, AI is transforming business operations across sectors. BBA and MBA graduates with a keen understanding of AI applications and data analytics will be in high demand. The “Make in India” campaign is revitalising the manufacturing sector, aiming to position India as a global manufacturing hub. This initiative opens numerous avenues for management professionals skilled in supply chain management, logistics, and operations. India’s startup ecosystem is one of the fastest growing in the world, fostering a culture of innovation and entrepreneurship. Management graduates with a flair for creativity and strategic thinking are essential to drive these startups to success.

Some other key sectors that are expected to drive the Indian economy forward include:

Renewable Energy: India is investing heavily in renewable energy sources such as solar, wind, and hydropower. This sector not only addresses environmental concerns but also aims to reduce dependency on fossil fuels and enhance energy security.

Infrastructure Development: Significant investments in infrastructure, including transportation (roads, railways, and airports), urban development, and smart cities, are crucial for supporting economic activities and improving the quality of life.

Healthcare and Biotechnology: The healthcare sector is expanding rapidly, driven by increased healthcare access, medical tourism, and advancements in biotechnology. The Covid-19 pandemic has further highlighted the importance of healthcare infrastructure and innovation.

Financial Services and Fintech: The financial services sector, including banking, insurance, and fintech, is evolving with digital transformation. Fintech innovations are making financial services more accessible and efficient, contributing to economic inclusion.

E-commerce and Retail: The e-commerce sector is booming due to increased internet penetration and a growing middle class. Online retail, logistics, and related services are creating numerous job opportunities and contributing to economic growth.

Agri-tech: Agriculture remains a vital sector, employing a significant portion of the population. Advances in agritech, including precision farming, supply chain improvements, and sustainable practices, are enhancing productivity and sustainability.

Tourism and Hospitality: India’s rich cultural heritage and diverse landscapes make it a major tourist destination. The tourism and hospitality sector is expected to grow, driven by domestic and international travel, contributing to GDP and job creation.

Pharmaceuticals: India is a global leader in pharmaceuticals, known as the “pharmacy of the world.” The sector is poised for growth with increasing demand for generic drugs, vaccines, and new drug development.

Telecommunications: The telecommunications sector is expanding with the rollout of 5G technology, increasing connectivity, and supporting digital transformation across industries.

All of these sectors shall require substantial numbers of management graduates to drive their aggressive growth. To align with the sectors driving growth and to meet industry demands, educational institutions need to think ahead and revisit and revamp their curricula. There is a need to incorporate contemporary subjects such as artificial intelligence, machine learning, digital marketing, and blockchain to keep pace with technological advancements. Emphasising practical skills through experiential learning, internships, and industry collaborations is essential for bridging the gap between academic knowledge and real-world application. Additionally, fostering entrepreneurship and innovation by integrating startup incubation programs and courses on venture capital can prepare management graduates better for India’s burgeoning startup ecosystem.

Globally, institutions like Harvard Business School have integrated courses on entrepreneurship, innovation, and leadership in the digital age, focusing on case studies and experiential learning. The Wharton School at the University of Pennsylvania offers a Business Analytics specialisation, equipping students with skills in big data and predictive modelling. INSEAD has introduced a range of electives on technology management and digital disruption, supported by collaborations with leading tech firms. In India, ISB has introduced specialised courses on AI, machine learning, and blockchain, and offers experiential learning opportunities through partnerships with tech giants and startups. Many of the IIMs have also revamped their programmes to include modules on digital transformation, data analytics, and sustainability. However, these changes are yet to be substantially incorporated into BBA and MBA programmes being offered by the vast majority of educational institutions.

As India positions itself as a global economic powerhouse, the role of skilled management professionals will be more crucial than ever. As we look towards the future, the role of management education in shaping competent, forward-thinking leaders cannot be overstated. This next generation of business leaders will be the architects of a prosperous, dynamic, and globally integrated India!

The author is the Group CEO of Techno India Group, a visionary and an educator. Beyond his corporate role, he is also a mentor who guides students towards resilience and self-discovery