Should faculties at reputed b-schools in India, with adequate industry experience, be paid at par with the industry? Why?

Mr. Chetan Shah has rightly said that in the US, Europe and most of the developed nations this has never been a problem. The ideal situation would be the movement from industry to academics to industry. In our country it has been a one way traffic from the industry to academics. The reason being very simple.Once you leave the industry it becomes very difficult to get back. And as you said the collective social loss is huge. In fact not a single MBA student I have met wants to teach.

The fees that the b-schools collect far outweigh what they are paying. So where's the question of paying a subsidy?

Now the mindset of students is only to earn as much as possible the day they graduate. I don't blame them. The system is such.