The MBA Math
March 13, 2013 2 Comments
A COST CHECK ON MANAGEMENT DEGREES
Indian B-Schools Pay Much Better Returns
DO MBAs from global B-schools give Indian students a better RoI than IIMs? The question is worth asking because Stanford University increased MBA tuition fees by 3.9% last month, even as salaries are declining.
In rupee terms, an MBA at top global B-schools can cost anywhere between 60 lakh and 69 lakh. Median pay for graduates with three years’ experience or less at these global schools has dropped to $53,900 ( 29.32 lakh) in 2012, down 4.6% since 2007-08, according to US website Payscale.com that examined 186 schools.An MBA at IIM-Ahmedabad, on the other hand, costs 17 lakh and students graduating from it earn a mean pay of 13.73 lakh.
Students need more than two years’ salary to pay back the cost of a global MBA. Indian MBAs pay back much faster.
Still, the popularity of global MBAs is unlikely to wane anytime soon. MIT Sloan has 100 students of Indian origin, of a total of 750 in its management programs. At Harvard, of 588 full-time international students in business courses, India forms the biggest chunk with 85 students for the year 2012-13.