Steady Decline in CAT Applications.

The CAT data whichshow a decline of close to 10% (from 2.14 lac in 2012 to 1.94 lac registrations in 2014) in the number of MBA aspirants over the past 3 years.Does that mean the top B-Schools of the country are losing their sheen? MBA losing its value? Not really. In a recent survey it was found that 3 out 4 MBA grads said that they could not have got in to their present jobs without their MBA.

In fact the CAT applications have seen a steady decline since 2008.Registrations for CAT 2013, was at a 5 year low. According to Dr. Jitendra K Das, formerly Professor and Dean (Noida Campus) at IIM Lucknow, also a CAT paper setter, also having taught at IIM Ahmedabad and IIM Kozikhode, currently Director, FORE School of Management, New Delhi, “There is a correction happening which was due. A surge in jobs when the economy was growing at a fast pace led to some sort of 'MBA Hype' created mostly without much value offered by quite a few ineffectual B-Schools having AICTE approvals. As a market correction the enrollments in MBA/PGDM programmes took a dip. And continuing with this correction the enrollments in MBA will attain its sustainable level in time. B-Schools have to provide a beneficial association to students. The incompetent institutions will fade away while the academically serious ones with evolving curriculum and increased industry collaborations will be the preferred choice of the students."

As the market correction continue to happen, schools which fail to offer value or add significance to the courses are being outright rejected by the smarter generation.

The general interest in CAT seems to be waning but interestingly, there is a rise in the no. of IIMs from 6 to 13. And with another 7 in the pipeline, it would be 20 IIMs. Registrations by female candidates have increased. Candidates with no work experience declined but with two or more years of work experience,have increased. A rise in CAT registration by differently-abled candidatesis seen. Engineers still rule but percentage of registrations from non-engineering backgrounds have increased.

Also on the rise isnumbers of applications to Global B-Schools. Indians have shown a strong presence in global MBA schools and stand second to China. What could be a worrying factor for IIMs or for that matter top Indian B Schools, is the rising GMAT applicant (25% jump) from India.

CAT still remains to be a basic parameter for admissions in top B Schools of the country, but many like Dr. Das feels it is not fair to judge the potential managerial quality of a student only by his CAT score. Schools like SJM School of Management - IIT Bombay or FORE School of Management, Delhi, gives more weightage to other factors and less to CAT during their admission process. MICA Ahmedabad, do not keep a cut off for CAT. The focus on providing international exposure to students is also getting prominence like at FORE 'International Immersion' is a part of the PGDM program. An area, the IIMs clearly lacks.

Is it the format of CAT or the lure of foreign university for which CAT is becoming an old hat for Gen Y & Gen G? It’s yet to be comprehended but what is apparent is rapidly growing cognizance of the stakeholder towards seeking valuefor MBA and in selecting institutes providing academic excellence.

 

[Swaswati Borpuzari]

The steady decline in CAT (Common Admission Test) applications over recent years has become a matter of significant concern for educational institutions and policymakers alike. This trend is not merely a statistical anomaly but a reflection of broader shifts in the higher education landscape, particularly in management studies. One of the primary factors contributing to this decline is the increasing skepticism among students about the value of an MBA degree in the current job market. With the rise of alternative career paths and the growing emphasis on entrepreneurial skills, many prospective students are opting for other forms of education or direct entry into the workforce. Additionally, the high cost of MBA programs, coupled with the potential for student debt, is deterring many from applying. The pandemic has also played a role, as it has disrupted traditional educational pathways and led to a reevaluation of priorities among young adults. Furthermore, the availability of online courses and micro-credentials is providing more flexible and cost-effective options for skill development. As a result, institutions that rely heavily on CAT applications are facing the challenge of adapting to these changes, possibly by rethinking their curriculum, reducing costs, and enhancing the perceived value of their programs. The decline in CAT applications serves as a clear signal that the education sector must evolve to meet the changing needs and expectations of the next generation of learners.

 

[Priyani Gupta]

The article presents a nuanced and realistic perspective on the recent decline in CAT registrations, questioning whether this signals a diminishing value of MBA programs or the fading allure of India’s top B-Schools. Contrary to a superficial conclusion that MBA is losing its significance, the article rightly points out that the trend is more reflective of a market correction and a maturing educational ecosystem rather than a loss of value.


First, it is important to acknowledge that the decline in registrations, from 2.14 lakh in 2012 to 1.94 lakh in 2014, and even further down in 2013, is not necessarily a bad sign. This downward trend can be seen as a healthy correction after years of an ‘MBA hype’ fueled by rapid economic growth and proliferation of many sub-par B-Schools. The article correctly highlights Dr. Jitendra K Das’s viewpoint that the correction is essential to phase out ineffectual institutions and maintain the integrity of quality education. This is a natural process in any academic or professional market: when supply outpaces genuine demand and quality, only those institutions offering true value survive.


Moreover, the article emphasizes that despite this decline, the MBA degree retains strong relevance, evidenced by the survey where 75% of MBA graduates reported that their degree was crucial for securing their current jobs. This clearly underlines the MBA’s enduring value in enhancing career prospects, particularly when obtained from reputed institutions.


The rise in the number of IIMs, from 6 to 13, with more planned, seems paradoxical given the declining applicant numbers but can be interpreted as a strategic move to widen access to quality management education. Additionally, demographic shifts such as increased female participation, more candidates with work experience, and growing applications from non-engineering backgrounds indicate diversification and a more mature applicant pool. These changes suggest that while quantity is decreasing, quality and relevance may be improving.


The growing interest in global MBA programs and a 25% jump in GMAT applicants from India is an important trend to watch. It signals an increasing global outlook among Indian aspirants and possibly an indication that international programs offer perceived advantages — be it curriculum, exposure, or brand value. This international preference challenges Indian B-Schools to innovate and enhance their offerings, particularly in areas like international exposure, where institutions such as FORE are making strides with ‘International Immersion’ programs. The IIMs and other Indian B-Schools would benefit from addressing these gaps to retain top talent.


Finally, the article wisely questions the over-reliance on CAT scores as the sole admission criterion. Many leading schools are now recognizing the importance of holistic evaluation, factoring in work experience, diversity, and soft skills. This shift aligns with global best practices and better prepares students for real-world managerial challenges.


In conclusion, the decline in CAT registrations should not be viewed as a sign of MBA losing its sheen or value but rather as a positive market adjustment ensuring that only quality-driven institutions thrive. The MBA remains a valuable qualification for career advancement, especially when pursued from credible and forward-looking B-Schools. The evolving landscape calls for continuous innovation, inclusiveness, and global integration to maintain the relevance and appeal of Indian management education.

 

[Dhruv Bindhani]

The provided text analyzes the evolving landscape of MBA education in India, specifically addressing the declining CAT (Common Admission Test) registrations and its implications for top B-Schools.

Despite a nearly 10% decline in CAT registrations between 2012 and 2014, the author asserts that this does not signify a loss of sheen for top B-Schools or a diminished value of the MBA degree itself. A recent survey supports this, indicating that three out of four MBA graduates believe their degree was essential for their current jobs.

Dr. Jitendra K Das, a prominent academic and former CAT paper setter, attributes this decline to a necessary "market correction." He suggests that a previous economic boom led to an "MBA Hype," with many "ineffectual B-Schools" (despite AICTE approvals) failing to provide genuine value. As a result, enrollment dipped, and the market is now adjusting towards a sustainable level. The key takeaway here is that incompetent institutions will fade, while academically serious ones with evolving curricula and industry collaborations will thrive.

Interestingly, while general interest in CAT seems to wane, several other trends are observed:

• A significant increase in the number of IIMs, from 6 to 13, with 7 more planned, bringing the total to 20.
• A rise in female candidates registering for CAT.
• A decline in candidates with no work experience, but an increase in those with two or more years of work experience.
• An increase in CAT registrations by differently-abled candidates.
• While engineers still dominate, the percentage of registrations from non-engineering backgrounds has risen.

A potential concern for Indian B-Schools is the rising number of Indian applicants to Global B-Schools, with India second only to China in this regard. The 25% jump in GMAT applicants from India is particularly highlighted as a worrying factor for top Indian institutions.

The text also questions the over-reliance on CAT scores for admission. While CAT remains a basic parameter for top B-Schools, many experts, including Dr. Das, argue that it's insufficient to judge a student's managerial potential. Consequently, institutions like SJM School of Management - IIT Bombay and FORE School of Management, Delhi, are giving more weightage to other factors and less to CAT scores during admissions. There's also a growing focus on providing international exposure, exemplified by FORE's 'International Immersion' program, an area where IIMs are perceived to be lacking.

The concluding thought suggests that while the exact reasons for CAT becoming "an old hat" for Gen Y & G are still being understood, there's a clear and growing awareness among stakeholders towards seeking genuine value from MBA programs and choosing institutes that demonstrate academic excellence.