IIMs Online MBA: A Strategic Investment or a Pricey Illusion
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IIMs Online MBA: A Strategic Investment or a Pricey Illusion

#MBA
Arushi PanditaUpdated on 26 Sep 2025, 09:53 AM IST

According to the Graduate Management Admission Council (GMAC) 2024, online MBA have seen a 61% application growth. While online education is on the rise, IIMs have ventured into online MBA degree, providing strategic access to quality management education for students. While this approach blends academic vision with prestige and high ROI, it leaves a financial gap for students.

IIMs Online MBA: A Strategic Investment or a Pricey Illusion
IIMs Online MBA: A Strategic Investment or A Pricey Illusion

The Indian Institutes of Management (IIMs) are premier business schools producing leaders who have shaped business and policies worldwide. With several online MBA and executive programmes, students from various backgrounds are provided access to quality business education. However, it does come with a hefty price that complicates the case of accessibility for those with lesser economic privilege.

While the IIMs promise strategic returns in terms of career progression, they simultaneously impose a financial weight that not all aspirants are ready to face, leaving a duality in these programmes, one of a quality academic vision and the other of financial strain.

Is IIM Online MBA Changing Online Education Landscape?

More than 2 lakh students aim for selection into IIMs, but approximately 5,500 secure the chance for that IIM dream. While full-time MBA programmes demand both relocation and other costs, online MBA programmes eliminate the need to move or relocate, thus saving additional charges for students. Due to this, IIMs online MBA programmes are adapting to these digital ecosystems without compromising on academic credibility.

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IIM online MBA, offered through executive and postgraduate management programmes, is designed for working professionals and executives. They allow students to advance their education without stopping their careers. The curriculum of these online management degrees combines business education with real-world applications, helping executives and professionals upskill seamlessly alongside their work commitments.

While the enrolment ratios within these programmes are positive, data from IIM Ahmedabad’s 2024-26 Blended Post Graduate Programme in Management highlights 138 students, with an average work experience of 8-9 years, including 25% women. This reflects increasing diversity and professional representation in online management education. Moreover, what makes this online MBA degree more appealing to students from diverse backgrounds is listed below:

IIMs Online MBA: A Strategic Investment or A Pricey Illusion

Also Read: IIM Fees 2025: Top IIMs Fee Structure for Online MBA in India

The Cost and ROI Factor: Does the Return Match the Price?

Investing in an Online MBA is an important decision for management aspirants, however, evaluating programme cost becomes a crucial factor in understanding whether the programme is worth pursuing. An online MBA from IIMs costs between Rs 8 lakhs to Rs 20 lakhs, placing it at the higher end of the market. Such a cost is considerably higher than what other universities charge for a similar online MBA degree, immediately raising the question: Does the return justify the price?

From a financial standpoint, IIM online MBA programmes set a higher bar for return on investment. While ROI should not only be measured in financial gains, but also in the form of accelerated career growth and skill enhancement, many professionals entering these programmes are already in their mid-careers and seek exponential pay jumps in their professional journey, making it essential to evaluate ROI through a broader lens.

Since the IIM advantage lies not only in potential salary growth but also in the qualitative returns, it provides a valuable asset for recruiters, serving as a signal of credibility and competence to secure leadership and managerial positions among national and international firms. Even if the immediate post-degree salary increment does not fully balance the programme cost, the degree’s value compounds in the long run.

At the same time, the high cost of an IIM online MBA requires a deeper look at the ROI. It is not just a simple transaction where one pays Rs 8 to Rs 20 lakhs in exchange for an immediate salary hike. Instead, it is a strategic investment for your career longevity and access to a powerful business school network that provides returns beyond the duration of the programme. Therefore, the real worth lies not in short-term gains but in the lasting advantages and credibility that come with an IIM education.

IIMs have shaped management education through online and hybrid learning, combining flexibility with strong academics and global recognition. These programmes lead to lifelong professional development and vast job opportunities. However, with costs ranging between Rs 8 to Rs 20 lakhs, an online MBA from IIMs is both a strategic investment and a financial strain for students with limited resources. The real value lies in carefully evaluating the costs against the IIM brand.

Frequently Asked Questions (FAQs)

Q: Is an IIM Online MBA degree recognised and accredited?
A:

Since IIMs are government-established business schools and the most prestigious management institutes in the country, their online MBA programmes are recognised and hold immense value in the job market.

Q: What is the fee for IIM Online MBA programmes?
A:

Online MBA fees at IIMs vary from one institution to another. IIM Sirmaur offers an executive MBA for Rs 8 Lakhs, while IIM Ahmedabad offers BPGP programme for Rs 20 Lakhs.

Q: Who should pursue an IIM Online MBA?
A:

Executives, mid-career professionals, and working aspirants seeking career progression and skill development without pausing their professional commitments can pursue the IIM online MBA course.

Q: Does the IIM Online MBA offer placement support?
A:

An Online MBA from IIMs provides strong placement support and networking opportunities. However, this opportunity varies by programme, work experience, and industry demand for each participant.

Q: Is the ROI of an IIM Online MBA worth the fee?
A:

ROI extends beyond salary hikes, offering long-term professional growth, strategic career positioning, and skill enhancement, making the IIM Online MBA degree valuable for many aspirants.

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Questions related to MBA

On Question asked by student community

Have a question related to MBA ?

Yes, with an 89 percentile in CAT, your daughter has a good chance of securing admission in several reputed MBA colleges in India, though top IIMs may be difficult unless she has strong academic diversity, category reservation, or exceptional profile factors. At this percentile range, many well-known Tier-2 and upper Tier-3 management institutes consider candidates for their flagship MBA/PGDM programs.

Institutes such as IMI New Delhi, IMT Hyderabad, XIMB HRM, GIM Goa (certain programs), FORE School of Management, LBSIM Delhi, TAPMI Manipal (borderline), IFMR GSB, Great Lakes (PGDM) and several reputed university MBA programs actively shortlist candidates around the 85–90 percentile range. Final selection does not depend on CAT score alone; academic background, work experience, diversity, performance in GD/PI/WAT also play a significant role.

To maximise chances, she should apply to a balanced mix of colleges, prepare well for interviews, and highlight strengths such as internships, certifications, leadership roles, or work experience. If her profile is average and she aims for higher-ranked institutes, she may also consider repeating CAT with focused preparation to push her percentile above 95.

With 71.52 percentile in CAT as an SC category candidate, getting admission to NIT Trichy (DOMS) for MBA is possible but not guaranteed. NIT Trichy generally has lower CAT cut-offs for reserved categories, and in recent years, the SC cut-off has ranged approximately between 65–75 percentile, depending on the applicant pool and seat availability. Since your score falls within this range, you may get shortlisted for the PI round, especially if you have decent academic consistency and meet the minimum eligibility criteria. However, final admission will depend on performance in the personal interview, academic background, and availability of SC category seats. You should definitely apply to NIT Trichy, but also keep options open by applying to other NITs like NIT Warangal, NIT Surathkal, NIT Calicut, and central universities, where your percentile gives you a better conversion probability. Preparing well for the interview can significantly improve your chances of securing a seat.

With an overall CAT percentile of around 80 and belonging to the NC-OBC category, you do have a fair set of MBA college options in India, including some IITs, though the top IIMs and older IIT MBA programs will be difficult at this score.

At the IITs, you can realistically consider the newer and mid-tier MBA programs. IIT Jodhpur (MBA), IIT Bhilai, IIT Jammu, and IIT Dharwad are among the IITs where candidates with 75–85 percentile in CAT and category reservation like NC-OBC have received calls in previous admission cycles. These institutes generally place more weight on CAT score combined with academic background, work experience, and performance in the personal interview. However, IIT Bombay, Delhi, Madras, Kharagpur, Kanpur, and Roorkee usually require much higher percentiles, even for reserved categories, so chances there are quite low at 80 percentile.

Apart from IITs, several good government and semi-government MBA institutes are strong options at your percentile. You should definitely consider colleges like NIT Trichy (DOMS), NIT Warangal (SOM), NIT Calicut (SOM), and NIT Durgapur, as NITs often have slightly lower CAT cutoffs for NC-OBC candidates compared to IIMs. Universities such as Jamia Millia Islamia (MBA), Aligarh Muslim University, University of Hyderabad, and Delhi School of Management (DTU) can also be explored, depending on sectional cutoffs and your academic profile.

In the private institute space, there are many reputed B-schools where 80 percentile with NC-OBC reservation gives you a reasonable chance. These include IMT Nagpur and Hyderabad, GIM Goa (for some programs), TAPMI Manipal, FORE School of Management, K J Somaiya (Mumbai), BIMTECH Greater Noida, IRMA Anand (depending on profile), and IFMR GSB Krea University. These colleges focus strongly on interviews, SOPs, and overall profile, so good communication skills and clarity of goals can significantly improve your chances.

Overall, your strategy should be to apply broadly. Prioritise newer IITs and NITs first, then reputed private B-schools with consistent placement records. Make sure you prepare well for the personal interview and group discussion rounds, as at this percentile, final selection depends heavily on how well you perform beyond CAT.

https://bschool.careers360.com/cat-college-predictor

Hello,

Both Bengal Institute of Business Studies (BIBS) and United World School of Business (UWSB) have strong placement records in Kolkata. with specific data suggesting BIBS has a slightly higher potential higher salary package. While the UWSB provides a higher placement rate.

I hope it will clear your query!!

Hello

With an NMAT score of 205, you have decent chances in good mid-tier MBA colleges.
You may get calls from NMIMS Hyderabad or Indore, but the Mumbai core is usually slightly higher.
Colleges like SDA Bocconi Asia Centre, BML Munjal, and IBS Hyderabad are realistic options.
Some reputed private B-schools may also consider you if sectional cutoffs are clear. Overall, 205 is a fair score that can lead to a solid MBA college with good planning.

You can refer to the link I am attaching for more details: CLICK HERE