Increasing Fees of MBA Colleges in our country has become a burden itself rather than an asset as unemployment is also looming with fluctuating economy. Many IIMs and other Top B-Schools are increasing fees but is increment justified ?
First, let’s do a comparative study of the fees (in INR) of MBA from any reputed college for the years 2014 and 2018:
|IIM Ahmedabad||15 L||22 L|
|IIM Bangalore||13 L||21 L|
|IIM Calcutta||13.5 L||21 L|
|ISB Hyderabad||20 L||33.34 L|
|XLRI||14.5 L||20.49 L|
|NMIMS||13 L||18.5 L|
|FMS||0.1 L||.22 L|
Now the question to ponder upon is, is the fee increase really worth it? We can shortlist few of the reasons:
The average rate of inflation for the past few years is 2%. To accommodate that, the IIMs had to increase their fee structure. Although, hike of 5-15% cannot be justified by inflation alone.
- Professor salaries
The professors of any b school are the top of their area. They are the best in the industry. So, to keep them with the institute, the b schools often pay a premium to the professors.
- Access to simulation tools, softwares and various case studies
Most of the b schools have license to various simulation tools and softwares which give the students a feel of the industry in the class room. The license of these tools and softwares are often very costly. B schools also have access to expensive case studies like HBR and IVY leagues schools. These also cost a great amount of money.
- Buildings and infrastructure
Coveted B schools in India have world class infrastructure like high end library, gym, sports complex and a huge campus. This also cost a fortune. The salary of the admin staff also cannot be ignored.
- Cost of student activities
All the B schools do various student activities to increase its visibility in the industry. Be it arranging guest lectures. Industry visits or other events like TEDx or cultural and management fest. These requires a lot of money because the college has to arrange for the travel, accommodation and food of the guests along with other expenses. This is also a costly matter.
The high cost of the MBA program can be justified by the above points. But still, the hike by 5-15% in the past 5 years cannot be justified. Yes, the package offered by the companies is also at par with the fees, but not all the companies visiting the campus offer such amount. So if one wants to calculate the ROI, the hike might not be worth it.
Crack MBA Admission Interviews Start Preparation for Interviews with MBA Experts CLICK HERE