Why MBA is Expensive?

Why MBA is Expensive?

Edited By Himanshu Shekhar | Updated on Apr 22, 2024 02:55 PM IST | #CAT

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.

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

Frequently Asked Questions (FAQs)

1. Is it really worth doing an MBA?

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.

2. Why MBA is costly in India?

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. 

3. Why MBA is more expensive than engineering?

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.

4. What is the highest fees for MBA?

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. 

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Questions related to CAT

Have a question related to CAT ?

The student cannot join the postgraduate MA program directly in the second year of the MA after completing the MBA.


Universities generally expect students to begin the first year of a masters' program even though they had qualifications at the level of a bachelor's degree. The university's curriculum along with the courses are planned to give an in-depth knowledge of the subjects.


But you could opt for:


Postgraduate Studies:


Research Career: In case research interests you, then you can pursue a Ph.D. in your specific interest.

Specialized Master's Programs: Find any specific master's course that supports the career goal.

Professional Certifications:


Make a professional certification in CFA, CA, or FRM to enhance the professional skills and better opportunities in the career field.

Job Entry via MBA

After gaining an MBA from a renowned institution, it's possible to get entry into the corporate world where the diversity in the career field is assured.

In the end, it would depend on what you would like and what you are particularly interested in. It will be better if you take a suggestion from your academic advisor or career counselor.

Hello Pratik,

If your family income exceeds 8 LPA, it will affect your eligibility for the NC-OBC category under the CAT reservation rules. The NC-OBC category requires that the family income should be below 8 LPA to qualify. If you anticipate that your income will exceed this threshold, you should update your status and notify the CAT authorities .

Here's what you can do:

  1. Email the CAT authorities : Inform them about the potential change in your income status and request to be considered under the General category, if applicable. You should do this before the examination or any further processing, as your eligibility for the OBC category depends on the income criteria.

  2. Documents and Proof : Make sure you have a valid OBC certificate and any relevant documentation regarding your family income, in case they require verification. Also, be aware that if your income exceeds 8 LPA, you might need to apply under the General category, as the OBC-NC reservation is no longer applicable.

  3. General Category Consideration : If your application is accepted as General, you will be evaluated based on the General category criteria, including cutoffs and ranking.

To summarize, notifying the CAT authorities is the correct approach to avoid discrepancies later, and if your income is above the threshold, you will be treated as a General candidate for the admissions process.



For more details about CAT exam you can check out an article by Careers360 whose link is given below:

Link: https://bschool.careers360.com/exams/cat


I hope this answer helps you. If you have more queries then feel free to share your questions with us we will be happy to assist you.

Thank you and wishing you all the best for your bright future.


Hi Shreya ,

Having a tattoo on your wrist should not  create a problem during the CAT exam as long as it does not contain any content that violates exam rules , such as communication-related symbols , unauthorised messages or any text resembling formulas or answers .

For a safe side , it is recommended :

1. Inform the Invigilators : Let them know about your tattoo during the identification check , so there are no misunderstandings .

2. Follow the Guidelines : Ensure you follow all instructions regarding permissible items and dress code on the exam day .

Hope this helps you .

ALL THE BEST .



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Hello,

Yes, you can also join IIMs two years after graduation, depending upon the justification in interviews and your performance in entrance exams. If you are not sure about CAT, try those other management exams less hard:

Common Management Admission Test: Easier than CAT; 4-5 months of continuous preparation will suffice.

MAT : Much easier and takes place thrice a year.

SNAP (Symbiosis National Aptitude Test): A bit easier than CAT, apt for Symbiosis Institutes.

Xavier Aptitude Test or XAT : Hence, easier than CAT but the unique decision-making section.

Use exams like CMAT and MAT as a challenge to be competitively prepared. This can be given about 4-5 months, along with a few rounds of mock tests and smart studying.

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Directions for question :

M/s Deloitte Touche Tohmatsu Limited, one of the top four audit and accounting firms in the world with headquarters at London, UK, and with an operational presence in 153 countries, hires Management Trainees (MT) from all the premier management institutes of India thrice every year, in the months of January, May and September.

Each new group of Management Trainees (MT) have to go through a four month rigorous training schedule, after which they have to pass through a test consisting of a written assessment and a case-analysis. The top hundred ranked Management Trainees (MT) based on the performance in the test are confirmed as Management Executives (ME). The rest are given the opportunity of undergoing the training for four months one more time along with the next batch of Management Trainees (MT) and then passing through the subsequent test consisting of the written assessment and case-analysis. The Management Trainee (MT) who fails to get confirmed as a Management Executive (ME) the second time is fired.

The scatter-graph below depicts the number of Management Trainees (MT) at Deloitte taking the tests from January 2020 till May 2022, and the vis-à-vis hired Management Trainees (MT) at Deloitte who were fired :

It is also known that for the month of September 2019 at Deloitte, 96 hired Management Trainees (MT) failed to be confirmed as a Management Executive (ME) the first time, and that 36 hired Management Trainees (MT) were fired. 

Question :

In which test did the minimum number of Management Trainees (MT) get confirmed as a Management Executive (ME) in the second attempt ?

Option: 1

September 2020

 

 


Option: 2

May 2021


Option: 3

January 2021

 


Option: 4

January 2022 


Directions for question:

Two friends Moloy and Niloy passed out from the Purulia Institute of Science and Technology with B.Tech degrees in Mechanical Engineering, but even after a year placement was hard to find. So they decided to take the challenge head-on, came down to Kolkata, rented a garage space on Park Street, and having an affinity towards making people enjoy good food, started their firm named 'B.Tech Bread-Omlette Wala'. 

They started with three items on the menu. One was the French Toast which could be prepared in 3 minutes. The second was the Egg Tortillas which took 15 minutes to prepare. Any one of Moloy and Niloy could prepare any one of them at a time. The third was the Egg Bhurji with French Fries. This however was prepared on an automated fryer which could prepare 3 servings at a time and took 5 minutes irrespective of the number of servings equal to or below 3. The fryer did not need anyone to attend to it, and the time to put in the raw ingredients could be neglected. So one could tend to the preparation of other items while the Egg Bhurji with French Fries were being prepared. 

They wanted to serve the orders as early as possible after the order was given. The individual items in any order were served as and when all the items were ready, and the order was then considered closed. None of the items on the menu were prepared in advance in anticipation of future orders. 

On the first day, 3 groups of customers came in and ordered at 6.00 pm, 6.10 pm, and 6.13 pm. The first order was for a plate of Egg Tortillas, two plates of French Toast, and three plates of Egg Bhurji with French Fries. The second order was for a plate of French Toast and two plates of Egg Bhurji with French Fries. The third order was for a plate of Egg Tortilla and a plate of Egg Bhurji with French Fries. 

On the backdrop of the above information answer the questions given :

Question: 

Assuming that the next customer's order could only be attended to when the previous customer's order was closed, at what time would the first customer's order be considered closed ?

 

Option: 1

6.15 pm

 

 


Option: 2

6.17 pm

 


Option: 3

6.18 pm

 


Option: 4

6.20 pm


Directions for question :

Six sticks of equal lengths were kept in the vertical position in an empty flower-vase, to be arranged at the six corners of a regular hexagon. The two ends of each of the sticks were of different colours. 

The top ends of the sticks were one of each of the following colours – Red, Cyan, Pink, Brown, Black and Green. The bottom ends were one of each of the following colours – Blue, Yellow, White, Orange, Purple and Grey. Both the sets of colours mentioned were in no particular order.

It was also known that :

a) The stick with the red colour was opposite to the stick with the blue colour

b) There were exactly two sticks whose both ends had colours whose names started with the same letter

c) The stick with the grey colour was adjacent to the stick with the white colour

d) The stick with the cyan colour was adjacent to both the sticks with the brown colour and the one with the blue colour

e) The stick with the purple colour was adjacent to both the sticks with the grey colour and the one with the green colour

f) The stick with the white colour was opposite to the stick with the green colour

Question :

What was the colour of the bottom end of the stick having brown colour at the top end ?

Option: 1

 White 

 


Option: 2

Yellow 


Option: 3

Black

 


Option: 4

Grey


Directions for question:

Two friends Moloy and Niloy passed out from the Purulia Institute of Science and Technology with B.Tech degrees in Mechanical Engineering, but even after a year placement was hard to find. So they decided to take the challenge head-on, came down to Kolkata, rented a garage space on Park Street, and having an affinity towards making people enjoy good food, started their firm named 'B.Tech Bread-Omlette Wala'. 

They started with three items on the menu. One was the French Toast which could be prepared in 3 minutes. The second was the Egg Tortillas which took 15 minutes to prepare. Any one of Moloy and Niloy could prepare any one of them at a time. The third was the Egg Bhurji with French Fries. This however was prepared on an automated fryer which could prepare 3 servings at a time and took 5 minutes irrespective of the number of servings equal to or below 3. The fryer did not need anyone to attend to it, and the time to put in the raw ingredients could be neglected. So one could tend to the preparation of other items while the Egg Bhurji with French Fries were being prepared. 

They wanted to serve the orders as early as possible after the order was given. The individual items in any order were served as and when all the items were ready, and the order was then considered closed. None of the items on the menu were prepared in advance in anticipation of future orders. 

On the first day, 3 groups of customers came in and ordered at 6.00 pm, 6.10 pm, and 6.13 pm. The first order was for a plate of Egg Tortillas, two plates of French Toast, and three plates of Egg Bhurji with French Fries. The second order was for a plate of French Toast and two plates of Egg Bhurji with French Fries. The third order was for a plate of Egg Tortilla and a plate of Egg Bhurji with French Fries. 

On the backdrop of the above information answer the questions given :

Question: 

Assuming that the next customer's order could only be attended to when the previous customer's order was closed, at what time would the third customer's order be considered closed ?

 

Option: 1

6.28 pm

 


Option: 2

6.35 pm

 


Option: 3

6.38 pm


Option: 4

6.45 pm


Directions for question:

Two friends Moloy and Niloy passed out from the Purulia Institute of Science and Technology with B.Tech degrees in Mechanical Engineering, but even after a year placement was hard to find. So they decided to take the challenge head-on, came down to Kolkata, rented a garage space on Park Street, and having an affinity towards making people enjoy good food, started their firm named 'B.Tech Bread-Omlette Wala'. 

They started with three items on the menu. One was the French Toast which could be prepared in 3 minutes. The second was the Egg Tortillas which took 15 minutes to prepare. Any one of Moloy and Niloy could prepare any one of them at a time. The third was the Egg Bhurji with French Fries. This however was prepared on an automated fryer which could prepare 3 servings at a time and took 5 minutes irrespective of the number of servings equal to or below 3. The fryer did not need anyone to attend to it, and the time to put in the raw ingredients could be neglected. So one could tend to the preparation of other items while the Egg Bhurji with French Fries were being prepared. 

They wanted to serve the orders as early as possible after the order was given. The individual items in any order were served as and when all the items were ready, and the order was then considered closed. None of the items on the menu were prepared in advance in anticipation of future orders. 

On the first day, 3 groups of customers came in and ordered at 6.00 pm, 6.10 pm, and 6.13 pm. The first order was for a plate of Egg Tortillas, two plates of French Toast, and three plates of Egg Bhurji with French Fries. The second order was for a plate of French Toast and two plates of Egg Bhurji with French Fries. The third order was for a plate of Egg Tortilla and a plate of Egg Bhurji with French Fries. 

On the backdrop of the above information answer the questions given :

Question: 

Suppose Moloy and Niloy had decided to process multiple orders at the same time, however strictly prioritising a first come first serve basis, when would the second customer's order be considered closed ?

Option: 1

6.20 pm

 

 


Option: 2

6.18 pm


Option: 3

6.15 pm

 


Option: 4

6.12 pm


Directions for question:

Two friends Moloy and Niloy passed out from the Purulia Institute of Science and Technology with B.Tech degrees in Mechanical Engineering, but even after a year placement was hard to find. So they decided to take the challenge head-on, came down to Kolkata, rented a garage space on Park Street, and having an affinity towards making people enjoy good food, started their firm named 'B.Tech Bread-Omlette Wala'. 

They started with three items on the menu. One was the French Toast which could be prepared in 3 minutes. The second was the Egg Tortillas which took 15 minutes to prepare. Any one of Moloy and Niloy could prepare any one of them at a time. The third was the Egg Bhurji with French Fries. This however was prepared on an automated fryer which could prepare 3 servings at a time and took 5 minutes irrespective of the number of servings equal to or below 3. The fryer did not need anyone to attend to it, and the time to put in the raw ingredients could be neglected. So one could tend to the preparation of other items while the Egg Bhurji with French Fries were being prepared. 

They wanted to serve the orders as early as possible after the order was given. The individual items in any order were served as and when all the items were ready, and the order was then considered closed. None of the items on the menu were prepared in advance in anticipation of future orders. 

On the first day, 3 groups of customers came in and ordered at 6.00 pm, 6.10 pm, and 6.13 pm. The first order was for a plate of Egg Tortillas, two plates of French Toast, and three plates of Egg Bhurji with French Fries. The second order was for a plate of French Toast and two plates of Egg Bhurji with French Fries. The third order was for a plate of Egg Tortilla and a plate of Egg Bhurji with French Fries. 

On the backdrop of the above information answer the questions given :

Question: 

Suppose Moloy and Niloy had decided to process multiple orders at the same time, however strictly prioritising a first come first serve basis, when would the third customer's order be considered closed ?

 

Option: 1

6.22 pm

 


Option: 2

6.25 pm


Option: 3

6.28 pm 


Option: 4

6.30 pm


Directions for question:

Two friends Moloy and Niloy passed out from the Purulia Institute of Science and Technology with B.Tech degrees in Mechanical Engineering, but even after a year placement was hard to find. So they decided to take the challenge head-on, came down to Kolkata, rented a garage space on Park Street, and having an affinity towards making people enjoy good food, started their firm named 'B.Tech Bread-Omlette Wala'. 

They started with three items on the menu. One was the French Toast which could be prepared in 3 minutes. The second was the Egg Tortillas which took 15 minutes to prepare. Any one of Moloy and Niloy could prepare any one of them at a time. The third was the Egg Bhurji with French Fries. This however was prepared on an automated fryer which could prepare 3 servings at a time and took 5 minutes irrespective of the number of servings equal to or below 3. The fryer did not need anyone to attend to it, and the time to put in the raw ingredients could be neglected. So one could tend to the preparation of other items while the Egg Bhurji with French Fries were being prepared. 

They wanted to serve the orders as early as possible after the order was given. The individual items in any order were served as and when all the items were ready, and the order was then considered closed. None of the items on the menu were prepared in advance in anticipation of future orders. 

On the first day, 3 groups of customers came in and ordered at 6.00 pm, 6.10 pm, and 6.13 pm. The first order was for a plate of Egg Tortillas, two plates of French Toast, and three plates of Egg Bhurji with French Fries. The second order was for a plate of French Toast and two plates of Egg Bhurji with French Fries. The third order was for a plate of Egg Tortilla and a plate of Egg Bhurji with French Fries. 

On the backdrop of the above information answer the questions given :

Question: 

A fourth customer comes in and orders two plates of French Toast at 6.24 pm. Suppose Moloy and Niloy had decided to process multiple orders at the same time, however strictly prioritising a first come first serve basis. For exactly how many minutes would one of the friends be idle from 6.00 pm till serving the last customer, assuming that the four customers were the only ones to have come in within the period being discussed ?

Option: 1

9

 


Option: 2

13


Option: 3

18


Option: 4

21


Directions for question:

Two friends Moloy and Niloy passed out from the Purulia Institute of Science and Technology with B.Tech degrees in Mechanical Engineering, but even after a year placement was hard to find. So they decided to take the challenge head-on, came down to Kolkata, rented a garage space on Park Street, and having an affinity towards making people enjoy good food, started their firm named 'B.Tech Bread-Omlette Wala'. 

They started with three items on the menu. One was the French Toast which could be prepared in 3 minutes. The second was the Egg Tortillas which took 15 minutes to prepare. Any one of Moloy and Niloy could prepare any one of them at a time. The third was the Egg Bhurji with French Fries. This however was prepared on an automated fryer which could prepare 3 servings at a time and took 5 minutes irrespective of the number of servings equal to or below 3. The fryer did not need anyone to attend to it, and the time to put in the raw ingredients could be neglected. So one could tend to the preparation of other items while the Egg Bhurji with French Fries were being prepared. 

They wanted to serve the orders as early as possible after the order was given. The individual items in any order were served as and when all the items were ready, and the order was then considered closed. None of the items on the menu were prepared in advance in anticipation of future orders. 

On the first day, 3 groups of customers came in and ordered at 6.00 pm, 6.10 pm, and 6.13 pm. The first order was for a plate of Egg Tortillas, two plates of French Toast, and three plates of Egg Bhurji with French Fries. The second order was for a plate of French Toast and two plates of Egg Bhurji with French Fries. The third order was for a plate of Egg Tortilla and a plate of Egg Bhurji with French Fries. 

On the backdrop of the above information answer the questions given :

Question: 

Had Niloy been absent on that day, and assuming that the next customer's order could only be attended to when the previous customer's order was closed, at what time would the fourth customer's order (refer to the previous question) be considered closed ?

Option: 1

6:38 pm

 


Option: 2

6:42 pm

 


Option: 3

6:47 pm


Option: 4

6:49 pm


Directions for question:

The bar-graph given below shows the foreign exchange reserves of Nepal (in million Rupees) from 2014 to 2021. Answer the following questions based on the graph :

Question:

What was the percentage increase (rounded to the nearest integer, if deemed necessary) in the foreign exchange reserves in 2020 over 2016 ?

Option: 1 None

Option: 2 None

Option: 3 None

Option: 4 None

Directions for question:

The Jadavpur University’s Prince Anwar Shah Road hostel consists of two large separate buildings, one for the ladies and the other for the gents, while having a common kitchen and dining hall. It is the hostel of the CS and the EEC department of engineering students of the university.

In recognition of the growing dissatisfaction and hence complaints among the inmates of the hostel regarding the menu served for dinner, the Dean of the engineering department, Dr Aparesh Sanyal, personally decided to investigate the matter. He set about collecting information about the preference of dinner among the inmates, separately from the gents and the ladies wing of the hostel.

Dr Sanyal was able to gather the following partial information :  

 

Hostel inmates

Menu preference for dinner

Total

Egg Meal

Fish Meal

Chicken Meal

Gents

   

20

 

Ladies

     

64

Total

 

60

   

 

The Warden of the hostel was consulted, who after investigation declared that the following facts were clear :

1. Forty percent of the hostel inmates were ladies

2. One-third of the gentlemen inmates preferred an egg meal for dinner

3. Half the hostel inmates preferred either fish meal or chicken meal

Question:

What proportion of the lady hostel inmates preferred a fish meal for dinner ?

 

 

Option: 1

0.25

 

 


Option: 2

0.50

 


Option: 3

0.75

 


Option: 4

1.00 


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Digital Marketing Executive

Digital marketing is growing, diverse, and is covering a wide variety of career paths. Each job function aids in the development of effective digital marketing strategies and techniques. The aims and objectives of the individuals who opt for a career as a digital marketing executive are similar to those of a marketing professional: to build brand awareness, promote company services or products, and increase conversions. Individuals who opt for a career as Digital Marketing Executives, unlike traditional marketing companies, communicate effectively through suitable technology platforms.

2 Jobs Available
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