Many MBA and private B-schools in India have shut down mainly because seats remain vacant, placements are weak, quality is poor, and running the college is no longer financially viable.��

Key structural reasons Excess capacity and vacant seats: In the 2010s, MBA seats expanded rapidly; by 2015–16, B-schools offered around 5.2 lakh MBA seats, but demand did not keep pace.� Large numbers of seats remained unfilled for several years, making it impractical for many institutes to continue.��

Weak demand in non-top colleges: Students increasingly prefer only top IIMs and a few reputed institutes, so lesser-known colleges in tier‑2/3 cities struggle to get enough enrolment.��

Placement and job-market issues. Poor placements in many institutes: Employment rates for two‑year MBA programs in many non-elite schools fell sharply, with some reports noting placement levels around 18% in weaker colleges.�

When students see that an MBA does not reliably lead to good jobs, they avoid such institutes.Economic slowdown and fewer MBA-type jobs: Slowdowns, stalled projects, and weak hiring in sectors like infrastructure, real estate, finance, hospitality, and retail reduced campus opportunities, especially in “B‑category” schools.��

Quality and reputation problems Low quality control and faculty issues: Several surveys and reports cite poor infrastructure, inadequate or underqualified faculty, and outdated curriculum as key reasons students shun many private MBA colleges.��

Perception of “degree mills”: Rapid mushrooming of private B-schools without strong industry links or academic standards created a reputation problem, pushing serious aspirants toward a small set of trusted brands.��

Financial and regulatory factors Unviable business model: With high fixed costs (land, buildings, staff) and low fee collection due to empty seats, many promoters found it made more “business sense” to close the MBA course and use the land for other ventures.�

AICTE scrutiny and closures: AICTE data show dozens to hundreds of professional colleges (including B-schools) closing in recent years because of poor enrolment or regulatory non-compliance, and some did not even seek renewal once they saw persistent vacancies.���

Changing student preferences Shift to other options: Many young people now choose specialised master’s degrees, tech/data programs, online and executive courses, or foreign MBAs instead of generic, low‑ranking Indian MBAs.��

Focus on ROI: With rising education costs, students and families pay close attention to return on investment; colleges that cannot show strong placements or brand value quickly lose applicants and eventually shut down.��