Varun Satia, Founder & CEO, Kraftshala

An MBA has long been considered the golden ticket to professional success—a gateway to six-figure salaries, leadership roles, and a fast-tracked career. But here’s the question no one wants to ask: Is the MBA living up to this promise anymore?

Look at the numbers, and the picture becomes clear. While top-tier institutions like IIM Ahmedabad or ISB boast impressive placement packages, over 50% of MBA graduates from Tier-2 and Tier-3 colleges struggle to secure jobs paying more than ₹6 lakh per year. Meanwhile, the cost of an MBA continues to climb, with programs demanding anywhere between ₹10 to ₹25 lakh in tuition alone. Add the cost of living, preparation expenses, and the weight of loans, and many students find themselves asking—was this worth it?

The reality is, not every MBA degree is created equal, and for many, it’s becoming less of a golden ticket and more of a financial trap.

Understanding the hard truth

The obsession with MBAs is deeply ingrained in India’s education culture. For decades, families have equated the degree with stability, prestige, and success. Cracking entrance exams like CAT or GMAT has been seen as a badge of honour. But what happens when the MBA does not deliver? The ROI on lower-tier MBA programs often paints a grim picture. The curriculum at many institutions is outdated, focusing on theories that don’t align with the fast-evolving demands of today’s job market. Worse, these programs lack the industry connections or placement capabilities to provide students with meaningful opportunities.

This isn’t to say that the MBA itself is outdated. Programs at top-tier institutions still offer excellent exposure, networks, and career advancement. But for the vast majority of students who attend lesser-known schools, the value proposition isn’t what it used to be.

Employers are moving beyond degrees

Here’s what has changed in the professional world: degrees don’t guarantee jobs anymore—skills do. Employers are increasingly shifting their focus to what candidates can bring to the table from Day 1. They’re asking questions like: Can this person solve real problems? Do they understand digital transformation, data analytics, or customer behaviour?

This shift is evident in hiring trends. Companies like Google, Amazon, and Tata Consulting Services are prioritizing candidates who have hands-on experience, certifications in relevant fields, or a proven ability to deliver results—regardless of their MBA credentials. In industries like marketing, technology, and even finance, the traditional MBA advantage is no longer a given.

Is an MBA still the right choice?

The takeaway here isn’t to dismiss the MBA entirely—it’s to rethink it. Before enrolling in any program, students and their families need to ask tough questions:

What is the ROI? If you’re taking a loan for ₹20 lakhs but graduating with a salary that doesn’t cross ₹6 lakhs, the math doesn’t add up.

Is the curriculum relevant? Does the program teach skills like data-driven decision-making, digital marketing, or AI—skills that are increasingly in demand across industries?

What alternatives exist? Certifications, specialized courses, or industry projects can often offer better returns with less financial strain.

Platforms like Kraftshala are offering targeted, practical education at a fraction of the cost with students graduating from these programs already breaking into high-paying jobs.These programs focus on real-world skills and give students the edge they need to stand out in the workplace.

Moving beyond the traditional

India’s obsession with entrance exams like CAT or GMAT perpetuates the belief that success is tied to cracking these tests and securing an MBA. But the world of work has evolved. Success today is about adaptability, problem-solving, and delivering value—not just where you studied. In fact, some of the most successful professionals in today’s workforce are redefining career paths without an MBA. Instead of spending years preparing for an entrance exam, many young professionals are opting for internships, bootcamps, or self-paced programs that let them build skills while gaining experience.

Here’s what every recruiter really wants: someone who can contribute from the moment they join. This means knowing how to manage projects, work with teams, and deliver outcomes. Unfortunately, many MBA graduates—especially from lower-tier programs—don’t come equipped with these abilities. This isn’t just a failure of the students but of the system. The focus of education needs to shift from theoretical learning to practical, hands-on training that prepares students for the realities of the modern workplace.

The way forward

The MBA isn’t dead, but its role is evolving. For students, this means making smarter decisions:

• If you’re considering an MBA, choose carefully. Look for programs that offer relevant skills, strong industry connections, and a solid ROI.
• Don’t underestimate the power of alternative paths. Certifications, internships, and specialized programs can often open the same doors as an MBA—without the heavy price tag.
• Focus on impact. Whether you have an MBA or not, your success will be determined by your ability to deliver value from Day 1.

As parents and students rethink higher education, it’s time to focus less on the brand of a degree and more on what truly matters: building the skills and experiences that lead to long-term success. The future belongs to those who adapt, question outdated norms, and make choices that align with the demands of today’s professional world.

Sources:

https://economictimes.indiatimes.com/industry/mba-graduates-salary-analysis

https://www.businessinsider.in/mba-vs-skills-industry-hiring-trends