Why is MBA expensive in India?

MBA is among one of the most coveted courses of study as it opens the gateway to various jobs both in the country and overseas offering handsome remuneration.

Masters in Business Management (MBA) is a two-year postgraduate programme that can be pursued in various disciplines, including Marketing, Finance, HR, Operations Supply Chain and IT. In the past decade, it has become one of the most sought-after courses to study in India and abroad. A graduate in any discipline, including Science, Commerce, Humanities, and Engineering, can enroll for this degree programme. The course has gained popularity since it opens multiple job avenues in leading corporates and multi-national companies with a good pay package.

Admission in B-schools

To secure a seat in a renowned business school in India, the aspirants are required to sit for the entrance tests. There are several admission tests conducted for admission for MBA/PGDM in an academic year. These are CAT, MAT, XAT, CMAT, IBSAT, SNAP, etc. After, clearing the entrance test, the candidates are called for Group Discussion (GD) and Personal Interview (PI). The final selection is done judging the student’s performance in the entrance test, GD and PI.

It is to be noted that before appearing for GD and PI in a particular B School, the candidates also judge the facilities, infrastructure, faculty strength, placement assistance provided by that Business School since all these schools charge heavy tuition fees from the students.

MBA fees in various B-Schools in India

There are plenty of B-schools in India. However, there is only a handful of them that will ensure top-notch teaching and a good placement at the end of the course. These include Indian Institutes of Management (IIMs), Xavier Labor Relations Institute (XLRI), Institute of Management Technology (IMT), among others. Besides, there are other reputed B-schools which are known for their state of the art facilities, infrastructure, highly qualified faculties, and excellent placement offers etc. Here is a list of the top 10 B-schools and their fees:

Name of the Institution	Total Fees
IIM Ahmedabad	Rs 21 lakh
IIM Bangalore	Rs 19.5 lakh
IIM Calcutta	Rs 19 lakh
XLRI, Jamshedpur	Rs 23 lakh
IIFT, New Delhi	Rs 15.7 lakh
MDI, Gurgaon	Rs 21 lakh
IMT, Ghaziabad	Rs 17.5 lakh
JBIMS, Mumbai	Rs 6 lakh
Symbiosis Institute of Management Studies, Symbiosis International	Rs 17.6 lakh
Faculty of Management Studies, New Delhi	Rs 22,000

Why are students inclined to study MBA?

MBA is among the most coveted courses for post-graduation as it opens the gateway to multiple jobs avenues both in India and abroad. The aspirants can crack through desired jobs in reputed companies at a managerial position. However, these opportunities depend upon the rank of the B-schools. The more reputed B-schools fetch more lucrative offers for the students.

Why is MBA costlier than other courses?

It is a well-known fact that MBA is also among the most expensive courses to study globally. Aspirants pay hefty fees to complete the two-year programme. Even before making it to a B-school, a candidate invests in preparing for the entrance exams, too. So the course includes a large amount of money apart from the tuition fees of the B Schools. Understanding these expenses, it is advisable that before taking the decision of joining an MBA course, the candidates must consider the prospect of the investment which revolves around the preparation cost, tuition fees, opportunities, badge, value, alumni network and choice of career. Here we make an attempt to give you a clear idea about the expenditure you will have to bear when planning to study MBA.

Hostel charges

Most of the reputed B-schools offer residential programmes. Students from all over the country aspire to enter these B-schools to study MBA and most of them opt for these residential services. This means they have to pay additional hostel charges.

Opportunity cost

An MBA programme is designed to develop candidates’ skills in certain domains. The degree is a qualification that gives a student a step-up in their career and enhances their competence and skill. So, the tuition fee for an MBA course also includes an Opportunity Cost. This cost is the foregone salary, professional experience and perhaps a promotion.

Preparation cost

To clear the MBA entrance examination, the candidates have to prepare themselves well in advance. There are several coaching centres spread all over the country that help the students prepare for the entrance exams. These centres charge a good amount of tuition fees from the students. An average sum for preparation of written examination starts from Rs 25,000 and for the preparation of GD and PI, there is an additional cost.

Application fees

The application fee for a Common Admission Test (CAT) is around Rs 1,600. This fee is only for eligibility in various IIMs. To be eligible for other B-schools, accepting CAT score, the application fee is around Rs 2,000. On the other hand, the application fee for Management Aptitude Test (MAT) is Rs 1,550, while that of Xavier Aptitude Test (XAT) it is Rs 1,700. While applying for the entrance tests, the students must keep in mind the application fees payable for various examinations.

Full-time or part-time MBA programme

Fresh graduates usually opt for full-time MBA programmes while those already working and are more than 32 years of age prefer to pursue a part-time programme. These candidates pursue an MBA to gain benefits in their job namely for promotion and an increment in pay packages.

MBA grades

To reap the absolute benefits of an MBA degree, the pursuers need to maintain a good score or grade throughout. Academic excellence lays the foundation of their credentials. The top recruiters always take into account the grades/percentile of the candidates along with their skills and aptitude. Hence, renowned B-Schools always pay attention to these facts and prepare their students suitable for grabbing the best jobs in the industry.

Badge value

Before taking a decision of joining a B-School, the students must consider the Badge Value of the institute. There are several ranking parameters to grade the institutes. All these good ranking institutes ensure for a lucrative job in the industry. But it is an undeniable fact that the candidate’s aptitudes, skills, capacity to think out of the box, perseverance, confidence play some vital role behind the selection of the candidate for the key position in a company.

Therefore, before drawing a conclusion, we may say that MBA, though an expensive degree, is of immense value in the corporate world. The benefits of an MBA degree outshine the expenditure it incurs. But before taking a leap, the aspirant must think of all its pros and cons.