Last year around 2.15 Lakh students appeared for CAT 2007, a Lakh took SNAP 2007, 50000 students took XAT 2008 and roughly 25000 took each of JMET 2008 and NMAT 2008. Multiply these numbers just with the cost of application form for these exams and you are staring at a figure of 46 Crores. Mind you these are just 2007-2008 admission figures and do not include the cost incurred by candidate to apply to other colleges who take these exam scores.
This year is going to be no different, If anything number of candidates will only increase and with the recent slowdown in value of rupee cost of applications is going to rise even further. IIM’s have anyways, hiked the CAT 2008 application fee to 1300 Rs. from 1100 Rs last year, which means a net gain of 40Lakhs from applications alone. Above sheet just represents what institutes gain from conducting the exam, that’s one side of story. On the other side you have the cost that a candidate has to bear for applying to these colleges.

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In my view, in CAT 2008, apart from the IIM’s, there are 20 other colleges that appear regularly on an MBA aspirant’s application shortlist. Total cost of applying to these colleges, at 2007 form pricing, would be around 25000 Rs. The cost obviously vary from an individual to an individual. Following is the calculation

55,000 Rs per candidate and there are around 2.15 lakh MBA aspirants who apply to these colleges. Not everyone will be investing this sum as basket for each individual will vary. I guess, even most confident of candidates will be filing applications worth 15000 or 20000. That, in my view, is absolutely INSANE. Most of the candidates are coming straight out of college and probably wont be in a position to put in that kind of money. But who cares about such candidates, Arjun Singh is only bothered about the reservations, for he thinks, reservations will help him keep his vote bank intact. I wish he was awake to realize the potential of MBA admissions process because if he was he would have by now recommended Industry status for MBA admission process and he would have okayed FDI in the industry. Just imagine the kind of impact it will have, you will get easier and hopefully cheaper loans. If you cannot payback, you can declare bankruptcy. There will be even more demand for MBA’s because the industry will have FDI. Everyone will win. But the old man is sleeping.

This is INSANE, wake up HRD, Education ministry, Do something. What do you think about this??