Management education is increasingly becoming important and playing a central role in the success of managers and organizations worldwide. The importance of the education sector, particularly a professional discipline like management studies, is increasing day by day in our country. In India, Management education has seen a remarkable growth in recent years as reflected in the steep rise in the number of higher learning institutes offering programmes in management at various levels but it is a complex one. Management Education system in India is governed by the central government through Ministry of Human Resource Development and its statutory bodies like AICTE, UGC etc. The quantitative growth of institutions in private sector smacks of attempts to commercialize and this need to be curbed. These institutions need to play a major role in producing the right quality and quantity of managers to meet the requirements of the market place. Nowadays the management institutions are facing a lot of problems for attaining qualit
y in management education. In order to improve the quality of management education being imparted in 7 National Institutes of Technology (former Regional Engineering Colleges, RECs) and to grade them to the level of IITs, these institutions have been fully- funded institutions under the central government. These institutions aim to improve the standards and offer world- class quality management education matching the global standards so as to attract the students to Indian Management Educational institutions. An effective management education is a must to produce world-class Indian managers besides making India a regional hub for management education. But some state level aided and self-financed institutions cannot attain this level of education. The students and parents are expecting more performance from these institutions except IIT and IIMs. This paper mainly concentrates on challenges and perspectives in management education and also explains the way of improvement of quality in management educational institutions.