Due to the vast customer base, businesses across the globe are eying the Indian markets to start their operations.

Also, a large number of initiatives have been launched by the government recently in its endeavour to not only make the country a manufacturing hub but also to make economic growth more inclusive.

These forces have increased the demand for professional managers many folds, making management education more important than ever.

In India, such education is imparted by varied players like universities, autonomous, affiliated and unaffiliated institutes besides open universities providing distance learning mode.

The Indian Institutes of Managements are considered institutes of national importance.

The human resource development ministry has put up a Draft Bill seeking to form a coordination forum for the 20 IIMs across the country sparking a debate over the contents.

It proposes to allow the IIMs to grant degrees instead of diplomas. As a result, programmes offered by the IIMs would be known as MBA (instead of PGDM) and PhD (instead of Fellowship).

This proposal is being appreciated by the new IIMs as they feel that granting of degree would help in building their brand in the market and would make their courses more attractive to students.

On the other hand, the reputed IIMs were opposing the Bill earlier because of some autonomy issues like freedom regarding appointment of chairpersons, directors and faculty members, fixing of fees and remuneration, changes in curriculum and decisions on the institute’s infrastructure, which now seems to have been resolved by the government.

However, the private institutes are still strongly opposing as they are the worst hit. The Bill if passed would have an adverse effect on their demand due to inability to grant degrees and may even put their existence in jeopardy.

Private institutes like FORE, IMI, MDI, SPJIMR, NMIMS, SIBM and BIMTECH that rank above the new IIMs, have quality infrastructure, admirable course curriculum and faculty, affordable fee structure and location, along and outstanding track record, and above all remarkable placements.

Such institutes comprise many of the IIMs in terms of knowledge, skills, training and employability of their PGDM graduates.

In view of the globalised markets, these private players have acquired additional significance. With the IIMs being able to grant MBA degrees instead of diplomas, it is probable that students will make their preferences based on the nature of certification rather than institute rankings.

The courses run by private institutes will lose their sheen once the IIMs begin to award degrees.

Recently, directors of around 50 PGDM private institutes under the aegis of the Education Promotion Society for India, an umbrella body of over 500 private institutions, debated on the proposed IIM Bill and tried to come out with possible ways to save the future of the private institutes.

It was felt by all that awarding of degrees by the IIMs would result in creating serious doubts about the legal status of a diploma.

In the entire debate regarding the proposed Bill no one seems to be concerned enough as to ask why such a move is required.

Is the rationale for regulation of the IIMs justified? As far as the IIMs, especially the older and the renowned ones are concerned, they are characterised by innovative faculty that is self-motivated, have super state-of-the-art infrastructure facilities, extremely strong alumna, abundant funds and are accepted centers of knowledge.

No one would doubt that autonomy has played a pivotal role in taking to such commanding heights.

One fails to understand whether the proposed move is guided by social motive or economic motive, not ignoring the expected political inefficiency.

It is strongly felt that there must be a level-playing field for everyone. In fact, the government should draft a Management Education Bill rather than an “IIM Bill” to approve all management institutes, be it government, autonomous or private purely on their merit.

The writer is Professor, Fore School of Management, New Delhi