Extremely dynamic business world and the rapidly developing knowledge based service economy have put in an increased demand for professionals to manage the business effectively. And this is precisely the reason why amongst various other fields of knowledge, desire for acquiring professional qualifications is growing, both amongst the fresh graduates and working executives. Indian Industry, after the liberalization, has become more aware of the vital linkage between the education system and business and corporate productivity.
Though there is a massive pool of the unemployed, paradoxically there is an acute shortage of skilled and productive professionals in every sector of Indian Economy. This is partly because the Indian Academy has been churning out graduates not exactly in line with the needs of the industry. As much as professional institutes aim to provide well groomed manpower to industry, the latter needs to involve in the affairs of the former for improving quality of manpower. There exists principal-agent relationship between institute and industry. It maintains that there is a theoretical base for a strong institute-industry interface; and hence industry needs to contribute to professional institutes, which, in turn, will have to look forward to the industry for input. Failure to recognize each other’s role will reduce the interface between institute and industry; and it can potentially give rise to mismatch between demand and supply of manpower, which, in turn, can cause disruption in the job market.