Rising Wage Gap Between An Indian And A Foreign MBA Graduate

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Rising Wage Gap Between An Indian And A Foreign MBA Graduate

“If you look at pure intellectual brilliance, IIM-Ahmedabad students compare well with the best anywhere in the world, including Harvard. Commitment to inductive learning and seriousness with which teaching is approached is similar”, said Dr. Ashish Nanda, Ex-Director of IIM-A.

The MBA graduates of the class of 2021 of Harvard Business School received a base salary of $217,000 whereas the MBA cohort of 2021 of IIM Ahmedabad received an average package of INR 26.13 LPA.

The stark difference in salary takes us back to one of the very basic questions that every MBA aspirant has when they decide to pursue an MBA, ‘Whether to pursue an MBA in India or an MBA Abroad?’

MBA Entrance Exams

India has many good MBA colleges. Many of them conduct their own exam while some accept scores of other exams. Common Aptitude Test (CAT) is the major exam that is conducted by IIMs for admission in the B-School each year. Its score is accepted by my IIMs and many top B-Schools in India like SP Jain, FMS, MDI etc. Apart from these, a few other major exams are XAT, IIFT, SNAP, NMAT by GMAC which is taken by thousands of students. The cost of these forms range from INR 1,000- INR 3,000.

For admission to MBA colleges abroad, one has to appear for GMAT which is conducted throughout the year. The cost of the GMAT form is USD 275 which translates to INR 20,600.

What is the lowest MBA Fee?

The tuition fee is one of the most important decisions that candidates consider while deciding upon MBA India Vs Abroad. Pursuing MBA in India can cost anything from Rs 4 lakh – Rs 25 lakh while pursuing it abroad can cost from Rs 20 lakh to Rs 1 Crore.

Rising Cost of Living

Apart from the fees, is the expense of the cost of living. There is no doubt the fact that the cost of living is less in India as compared to countries like US, UK, Canada, Singapore etc.

Travelling, food and accommodation, and book expenses are a few of the additional expenses which vary from country to country.

You should also read: Know It All: Cost of attending Harvard MBA Class

Course Curriculum and Structure

The curriculum is one of the criteria where many similarities can be found in both MBAs in and outside India.

Case-based pedagogy was started by many colleges abroad. This approach is being followed by many top colleges in India too.

One should be careful while selecting a college in India many new colleges, which lack experienced faculty, are still using a theoretical pedagogy.

How relevant is Work Experience for MBA?

This is one of the criteria where the freshers, lacking any professional experience, should give special importance.

MBA colleges in India are very liberal when it comes to selecting freshers. In some of the colleges in India, the experience in a 2-year MBA program usually ranges from 0 to 4 years.

The colleges abroad namely US, UK, Canada, and France prefer candidates having good work experience which usually ranges from 2 years to 8 years.

Placement Opportunities after MBA

“At IIM-A most of the students are younger than at HBS. Most of those entering class at HBS has several years of experience; the entering class at IIM-A has less experience”, said Dr. Ashish Nanda.

Most people want to pursue MBA for two reasons:

Career Progression

Better Income Prospects

Taking placement is easy in India, as most of the colleges of India invite the companies to their campus to which the students can apply. It happens both during the summer internships as well as the placement.

It is difficult to take get placed in decent companies when it comes to colleges abroad. In most countries, colleges provide neither any guarantee of placement nor do they invite companies to campus. Students have to network and find opportunities themselves. In the USA, it is a sort of job fair where the students apply their CVs to the top companies and these companies select the candidates according to their requirements. Since there is no intervention on part of the college, placements become a bit difficult when pursuing MBA from abroad.

Average Salary after MBA

The average salary also varies from country to country. But a broad estimate shows that students pursuing MBA from top colleges in India can get an average yearly package of Rs 16 lakh- Rs 20 lakh.

The average package abroad in top MBA colleges like Stanford GSB, Wharton, and Harvard can range anything from Rs 70 lakh- Rs 80 lakh.

You should take into consideration the stated parameters. After gauging the pros and cons of each of the following parameters, you will be able to decide where you want to pursue your MBA- In India or In Abroad.

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