Is the ROI of an MBA Still Justifiable in 2025?

An MBA in India is a popular route to secure high-paying jobs. Many aspirants also opt for this course for social image and career growth. Lakhs of students participate in CAT, XAT, SNAP, or other MBA entrance tests every year. They aim to secure MBA admissions in IIMs or other top management schools. But this scenario looks completely different in 2025. High tuition costs, new course options, and changing job requirements make students question their choice. They are curious to know whether spending INR 20–50 lakh on an MBA is still sensible. Continue reading to know “Is the ROI of an MBA Still Justifiable in 2025” and other details here.

Join this free whatsapp group to get the latest information about CAT exam along with the strategies by CAT experts

Is the ROI of an MBA Still Justifiable in 2025?

The ROI of an MBA is computed after subtracting total expenses on your MBA degree from the post-MBA salary. The total cost for an MBA degree includes tuition fees, accommodation and other miscellaneous expenses. In the past, the calculation was very easy and simple. Higher fees implied higher salaries. Things are very uncertain nowadays. 

• Rising Fees: Leading B-schools in India now charge between INR 20 to INR 40 lakh for a two-year degree. This includes living expenses, books, and other costs. The total expenses for an MBA are nearly INR 40 lakh.
• Low Package: MBA graduates do not always secure higher packages. Many mid-sized companies offer INR 10 to 20 LPA. It may also take 6 to 10 years to recover your investment.
• Opportunity Cost: MBA candidates often spend 2 to 3 years towards exam preparation. These result in losing work experience, earnings and career growth.
• Other Learning Options: Certifications in AI, data analytics or digital marketing are less expensive than an MBA. This led to similar or even better job opportunities.
• Global Challenges: Many international companies now require a specialised skill set or work experience. They do not focus much on a general MBA degree.

Why an MBA Can Still Pay Off in India?

MBA has not completely lost its usefulness in India. It brings practical and professional benefits. Given below are the reasons why it is still valuable:

• Networking Opportunities: Networking is an important skill in the corporate world. Top MBA courses offer an alumni network and industry exposure that cannot be replaced by any online course. This can result in high-paying job referrals and global opportunities.
• Career Acceleration: An MBA helps you reach management roles faster. Having an MBA can speed up your promotions. Many companies often hire MBA graduates for leadership roles.
• Specialised Skill Set: Skills like managing people and communicating are a key part of an MBA. They also offer a clear picture of business and equip you with skills to work across different sectors and job functions.
• Credential Power: An MBA degree from a top college is still valuable in 2025.  It can help you excel in competitive job markets. It also increases confidence and reputation in social groups.

Why the MBA ROI is Becoming Controversial

Many MBA aspirants wonder whether the ROI of an MBA is still justified. Below are the key reasons behind this:

High Costs vs. Low Payoff

It is a risk to spend nearly INR 40 lakh for a salary increase. Many graduates spend 6 to 10 years just to recover their investment. While technology or digital marketing certifications cost between 50,000 and 2 lakh. It provides similar or higher pay in less time.

Skills Over Degrees

Employers prefer skills over formal degrees in the hiring process. There is a massive demand for AI, data science, and digital marketing skills. Many reputed and leading companies are nowadays hiring skilled candidates without an MBA degree.

Startups and Changing Work Culture

In today’s era, startups are dominating the Indian Job Market. Experience and skill sets are preferred more than formal degrees. Many startup founders are young and successful without MBAs.

Mental and Emotional Costs

Pursuing an MBA is not simple. It includes high costs and endless pressure. Doing an MBA means you have to spend years away from your loved ones and a stable salary. High-pressure job placements may cause frustration when things do not go a certain way.

Is the ROI of an MBA Still Justifiable in 2025? What Does Data Say

Is the ROI of an MBA Still Justifiable in 2025? The comparison of fees and salary packages of the top B-schools can give you a reality check. Look at the cost of studying and the salary packages of top business schools in India.

Top B-schools in India for MBA	Fees	Placement Package (Approx)
IIM Ahmedabad	INR 27,50,000 (inclusive of tuition fees of INR 20,10,000)	INR 34.45 LPA to INR 1.46 crore per annum
IIM Bengaluru	Rs. 26,00,000	INR 32 LPA-INR 35 LPA
IIM Kozhikode	INR 23,50,000	INR 28 LPA-INR 72 LPA
IIT Delhi	INR 12 Lakh	INR 15 LPA-INR 18 LPA
IIM Lucknow	INR 20,00,000	INR 30 LPA-INR 1.23 Crore per annum
IIM Mumbai	Rs 21,00,000	INR 47 LPA-INR 54 LPA
IIM Calcutta	Rs 27 Lakhs	INR 35 LPA-INR 1.15 Crore
IIM Indore	INR 21,00,000	INR 25 LPA-INR 1 crore per annum
MDI Gurgaon	INR 18 Lakh-INR 26 Lakh	INR 25.6 LPA to INR 53.6 LPA
XLRI Jamshedpur	INR 15 Lakh-INR 28 Lakh	INR 30 LPA-INR 75 LPA

Final Verdict: Is the ROI of an MBA Still Justifiable in 2025?

The answer is not simple. MBA is the best route for those looking for career growth and high-level networks. While ROI is questionable, specifically for those admitted to low-ranked B-schools. It is typically compared with inexpensive and skill-focused options. Here are the key takeaways:

• An MBA does not always ensure high-paying jobs.
• Skills and experience are preferred over a formal degree in the job market.
• Smart choices in specialisation, college selection, and networking can improve ROI.

Join CAT 2025 Crash Course