There is no going back that hiring of MBAs will continue in 2009. The only change will be that sectors like FMCG and manufacturing which previously could not pick up management graduates will now get the opportunity to recruit them

What began in the 1960s in India had turned into a revolution by the 90s. Management studies quickly rose from being a part-time education for practicing executives into a full-time course for all. By 1990, 82 universities across India offered MBA, a number that has risen to approximately 1,100 in 2005. While the buoyancy experienced by the MBA market was to face a critical setback due to the global economic slow down, the emerging picture is optimistic.

India has a booming hiring climate as predicted by the Manpower Employment Outlook (MEO) survey, India. The country ranks at the top amongst 33 countries with the most favourable fourth-quarter hiring plans in 2008

For MBA graduates passing out in 2009, the impact of the slowdown may seem strong and volatile. But the cushioning effect of this slowdown is the silver lining for most MBA aspirants.

Sujata Khanna, chairperson, Career Forum said salaries and recruitments have been affected in particular sectors such as finance, consultancy and investment banking. “However, sectors such as infrastructure, services and manufacturing are unaffected," she adds.

"There was an escalation of salaries in the last three to four years in the finance sectors boosted by an upward economy, the soufflé effect of which will now see a stabilisation of salaries in line with traditional standards such as inflation. The recruitment market is getting realistic," says Sujata.

Ajay Malhotra a student from one of the country’s leading B schools corroborates this point and says, "Although salary levels have not seen a drastic drop since last year, there has been a drop in the number of recruitments.” Ajay has been placed through the campus recruitment drive in his college recently and will join a top Indian business house in June.

Prof Ajeet Khurana, director, Peak Seekers, says, “When the economy is buoyant there is a segment of sectors such as investment banking that take away the cream of the top ranking B-schools in the country. In this recessionary environment, good companies from other sectors such as FMCG and manufacturing will now get the opportunity to recruit top management graduates."

"The current environment benefits everyone; students, who get a wider choice of sectors to choose from, the industry that can now recruit top graduates and B-schools, that gets to explore several new sectors for placements. The MBA culture and skill sets gets distributed over a larger industry segment, benefitting not just those involved but the economy as a whole," he adds.

Good placements in this recessionary scenario are possible if students open themselves to explore new possibilities in areas such as the services sector, FMCG, manufacturing and infrastructure.