Why MBA is Expensive?

Why MBA is Expensive?

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CAT Application Date:01 Aug' 25 - 20 Sep' 25

Himanshu ShekharUpdated on 22 Apr 2024, 02:55 PM IST

In earlier times, unlike professional courses like Law or Medical courses, an MBA did not have much recognition among the masses nor was it considered much prestigious degree like the other two mentioned above.

This Story also Contains

  1. Why MBA is Expensive?
  2. Why are MBAs so Expensive?
  3. How can you make an MBA affordable?
  4. Top B-Schools MBA Fee Structure
Why MBA is Expensive?
why mba is expensive

It is about the 19th century, when industrialization took place and society witnessed a rise in the demand for leaders who could manage big organisations since such leaders were capable of understanding the relationship between expertise and the world force of a company. MBAs and MBA degrees became prominent in the management field in the middle of the 20th century. When the demand for MBA courses and specialisations increased, the cost of doing an MBA also increased.

Why MBA is Expensive?

Along with the passage of time, MBA has built a solid reputation among the masses globally. The fact that this degree promises high employability and salary to fresh MBA postgraduates makes an MBA even a better opportunity as a career for students. But everything comes with a cost, so is a top MBA course. Once a student decides to pursue an MBA, along with appearing in top MBA entrance exams, he is expected to know about the hefty amount of fee he has to pay to the institution where he is pursuing his MBA degree.

Despite being an expensive one, this course has gained so much popularity in the last decade as it opens a gateway of numerous opportunities for MBA grads once they complete their degree. That's why MBA is so costly in India. MBA is a 2-year postgraduate programme that can be pursued in various disciplines like- MBA in Finance, HR, Marketing, and IT in India. The program is offered by the top and most prestigious B-Schools across the country and IIMs (Indian Institute of Management), Symbiosis Institute of Management Studies, Symbiosis International, Faculty of Management Studies, etc are some of those Institutes. The fee structure of each Management school differs from that of each other. The fee for an MBA degree in India ranges between 6 lakh to 22 lakh.

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Why are MBAs so Expensive?

Here are the factors that play a significant role in making MBA an expensive course, By going through the below factors, candidates can easily understand why MBA is so expensive?

  • Expertise of Faculties

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It is the responsibility of B-Schools to provide their students with expert faculties who have excellent academic credentials. The knowledge of such experts comes at a cost and taking insights from such professors and mentors is one of the main benefits of pursuing an MBA. Hence, it’s quite reasonable for B-schools to invest in such faculty.

  • MBA is not just a qualification

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While pursuing an MBA, one doesn’t only pay for their studies but also for the experience that they would miss out on otherwise. Studying MBA could cost more than just a tuition fee especially when one decides to move abroad and study at prestigious Management schools in America or Europe. It is needless to say moving out of your home country to another country for the purposes of study becomes substantially expensive.

  • Resources

B-Schools do not provide for faculties and tutorial classes only, rather, these institutes always endeavor to offer their students more and more facilities such as school resources which include- hostel, library, mess, etc. Along with these resources, management institutes are also encouraging e-learning and digital learning models in order to make it easier for MBA students to learn through online programs. Such learning resources come at a cost.

  • Student Trips

Apart from studies, MBA students at B-Schools add value to their experience by participating in various kinds of abroad trips to conduct big projects, workshops, programs, career fairs, etc. Such programs also incorporate a huge cost of learning.

How can you make an MBA affordable?

Before enrolling in an MBA programme, one must thoroughly go through ways that might make their journey in B-school affordable. They can go for the options like:

  • Scholarships

MBA is an expensive course, hence, to help bear the expenses, there exists an MBA Scholarship. One must research the MBA Scholarship opportunities available to them as it will open the doors for them to pursue a popular yet expensive course and help them to cover a part of their education expenses.

Also, there are available scholarships for students belonging to a particular group or community, which they can avail by fulfilling the basic eligibility criteria for such scholarships.

  • Student loan

In case, where one fails to find any MBA scholarships or if no scholarships are available to them, they can also go for student loans with lower interest rates also.

MBA is an expensive course, but at the same time it promises career growth, personal development, and high salary along with great learning experiences.

Top B-Schools MBA Fee Structure

The MBA course fee offered by the various B-schools are mentioned below. Going through the below table, MBA aspirants can get the answer to the question, Why MBA so expensive?

B-School

IIM Fee Ranges (Approx in Rs.)

IIM MBA Fees

Rs 12,00,000 to 28,00,000

IIT MBA Fees

Rs 4,00,00 to Rs 21,00,000

XLRI Jamshedpur

Rs 16.8 lakh

MDI Gurgaon

Rs 24.16 lakh

TAPMI Manipal

Rs 16.50 lakh

Great Lakes Institute of Management, Chennai

Rs 21.25 lakh

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Frequently Asked Questions (FAQs)

Q: What is the highest fees for MBA?
A:

Usually, the highest fee in Tier-1 MBA colleges ranges from Rs 15,00,000 to Rs 30,00,000. Apart from that the MBA fee structure in top IIMs ranges from Rs 15,00,000 to Rs 28,00,000. 

Q: Why MBA is more expensive than engineering?
A:

An MBA programme is designed to develop candidate's skills in various domains. However, Engineering course follows a single path. MBA degree is a qualification that gives a student a step-up in their careers and enhances their skills and competence. The MBA fee also includes an opportunity cost.

Q: Why MBA is costly in India?
A:

One of the most significant reasons behind the expensive nature of the MBA programs in India is the need for robust facilities and infrastructure. In order to deliver high-quality education, B-schools require well-equipped libraries, modern classrooms, audio-visual aids, computer labs, and other amenities. 

Q: Is it really worth doing an MBA?
A:

Doing an MBA is only worth the expense, time, and effort when a graduate plans to work in a business-related sector, in management, or as a company founder.

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Hello

The CAT 2025 exam is a national-level MBA entrance test for IIMs and top B-schools in India. It will be held on 30th November 2025 in computer-based mode across ~170 cities.
The registration is open from 1st August to 13th September 2025 on iimcat.ac.in .
Admit cards will be available from 5th November 2025 onward.
Graduates with at least 50 marks (45 for SC/ST/PwD) are eligible to apply.
The exam tests English, Reasoning, and Quantitative Aptitude in three timed sections.

Yes, you can pursue an MBA at Babasaheb Bhimrao Ambedkar University (BBAU), Lucknow, through the CAT exam.

Eligibility Criteria:

  • Educational Qualification: A bachelor's degree with at least 50% marks (45% for SC/ST/PwD candidates) from a recognized university.

  • Entrance Exam: A valid CAT score is required for admission.

Admission Process:

  1. Application: Register online through the BBAU admission portal.

  2. Entrance Exam: Appear for the CAT exam and obtain a valid score.

  3. Counseling: Shortlisted candidates will be called for counseling based on their CAT scores.

  4. Document Verification: Submit necessary documents for verification.

  5. Fee Payment: Complete the fee payment to confirm admission.

Course Details:

  • Duration: 2 years (full-time).

  • Specializations: Finance, Marketing, Human Resource Management, among others.

Placement Opportunities:
BBAU has a strong placement record, with top companies recruiting MBA graduates.

For more details and to apply, visit the  official BBAU MBA admission page

Hello Amgothu

With 305 marks in ICAR PG and being from ST category, your chances of getting an AIEEA (CAT) seat is good, especially in plant sciences and less competitive subjects