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COVID-19 Economic Slowdown | Effects On MBA Entrance Exams 2020

May 21, 2020 | 6 minutes |

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The disruption caused by COVID-19 has inflicted anxiety and nervousness in almost every aspirant, admit and student. MBA sessions in our country generally start in June or July. However, there is a high probability that classes may not commence as planned this year because the admission processes at many b-schools aren’t over yet. Apart from that, the coronavirus pandemic is going to trigger an economic tsunami for our country. The incoming economic slowdown has already started impacting the job market, threatening the youth with mass unemployment. Such factors are bound to have an effect on MBA entrance exams in 2020. Just look at what happened in post-2008 (global recession)! In this article, we compare the current situation with 2009 (post-2008 global recession) to get answers for what may happen this year. Read more to find out.
What Happened To MBA Entrance Exams During The Economic Slowdown of 2008-2009?
You may also find this interesting: MBA During A Global Economic Crisis | Johann M, Monitor Deloitte, HEC Paris, Cornell Alum

Will The Incoming Economic slowdown will have an Effect on MBA Entrance Exams 2020?
You may also like reading: GD-PI-WAT Going Online: Challenges and Solutions

What Is The Reason Behind The Possible Increase Of Candidates Taking MBA Entrance Exams?
It’s a common sentiment that pursuing an MBA during a time of recession is a good investment. This may lead to more number of people attempting for CAT, XAT, SNAP, NMAT, GRE, etc. in 2020 and 2021, mirroring the situation in 2009 and 2010. Apart from that, there are other underlying reasons. Here are a few of them: 
  1. Poor placement season in undergraduate colleges: Many undergraduates generally believe that having a few years of work experience before a Masters is the “right” thing to do. During the time of slowdown, placement scenarios at top colleges including IITs, NITs and other institutes may not be great. Students who will graduate from undergrad courses this year may not get their desired job or salary. Apart from that, the existing global economic slowdown resulting from the coronavirus outbreak has brought the industrial growth to a bare minimum. Hence, many may believe that acquiring management skills now may add to their learning especially to understand the current business scenario. 
  2. Lay-offs: According to a CNBC article, nearly 50% of companies say they are at least somewhat likely to conduct layoffs over the next three months, while more than a third of firms (37%) say they already have instituted a hiring freeze. This scenario is already playing out in the US, Europe and parts of Asia. India may be doing slightly better than the rest of the world, but the economy is hurting. We can already see it with companies like OYO, Udaan, Uber, Swiggy, Zomato and the likes. Hence, instead of looking for a job during this recession, many laid-off employees will use their time in improving their profile and add new skills by pursuing an MBA with their preferred specialization
  3. No promotions during bad times: One thing is sure, there will be more salary cuts instead of promotions. MakeMyTrip has already announced pay cuts. Even the Telangana Chief Minister is taking a 75 per cent salary cut, along with his cabinet, MLCs, MLAs, state corporation chairpersons and local bodies representatives. Many employees currently part of the organisation may decide not to cling to a stagnant system and prepare to go after the top jobs after completing their MBA.
  4. Uncertainty About MBA Abroad: Many MBA aspirants who want to study abroad may not be able to pursue that dream until the travel and immigration bans are lifted. Hence, many of them may feel like giving top Indian b-schools a shot. 
Also read: Should You Pursue An MBA During The Economic Recession?

Final Thoughts

The COVID-19  situation has triggered an economic slowdown that will affect almost every sector. The MBA and education sector is no different. Due to lockdown, preliminary rounds (GD-WAT-PI) in b-schools have been moved to online platforms. That might become the future of the b-school selection process. It is already predicted that there will be more applicants who will be competing with each other in the MBA entrance exams in 2020. Which may trigger b-schools to increase cut-offs or difficulty levels of their tests. While the application number may not be in our hand, our preparation is. This year let's study extra hard, give our 120%, stay focused, and ace the MBA entrance exams in 2020. 

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