Once an applicant got an opportunity to choose between Indian School of Business (ISB) and TUCK in USA. He picked ISB over TUCK. Reason? “TUCK is way too expensive,” he said adding, “ISB is a cheap School”. I have a strong feeling that you feel the same way too.
If you want to pick ISB, you should do so because it is a great school and not because it is a “cheap School”. When you are comparing domestic programmes with the international ones, cost should not be the prime factor as you cannot do an absolute comparison without factoring in the purchasing power parity.
TOP GLOBAL MBA versus TOP INDIAN MBA
Total cost of education
GLOBAL 1 crore
INDIAN 20 to 30 lakh
Loan Repayment Terms
GLOBAL Max up to 20 years @ 8.25%
INDIAN 10-15 Years – 11.5%
Average Annual Salary
GLOBAL $100000( Joining bonus is separate)
INDIAN Rs 66 lakh + Rs 15 lakh Joining Bonus
Rs 12 to 18 lakh( 1 to 2 lakh Bonus)
Average Monthly Salary
GLOBAL Rs 5.5 lakh
INDIAN Rs 1 to 2 lakh
Average Monthly Salary after Taxes
GLOBAL Rs 4 lakh
INDIAN Rs 70,000 to 1.4 lakh
Average Monthly expenses
GLOBAL $ 2,000 -$3,500 (Rs 1,24,000-Rs 2,10,000)
INDIAN Rs 60,000- Rs 70,000 ( Mumbai/Gurgaon)
GLOBAL – 10 Years- $1900 ( Rs 120000)
20 Years-$ 1,300(Rs 85000)
INDIAN Rs 25,000 to 35000 ( 10 Year Repayment)
Rs 20,000 to 30,000( 15 year Repayment-Max Term)
GLOBAL Rs 80,000 to Rs 2,00,000. Surplus available for car loans/ home loans (considering the max and min range of loan repayment terms and your monthly expenses)
INDIAN Negative – Rs 4,000( Negative) to Rs 10,000. Not sufficient for car loans
How should one decide?
International MBA will have case studies and examples from the international markets. If you are keen on working in India, those will not help you as much. However, if you are keen on working across the borders, you need that access.
Diversity- Do you need it?
If your future role will require working with people from various countries, it will make sense to go for an international MBA. Being a part of the international community will make the transition smoother.
If you are more keen on working in the Indian markets, and start your career in a consulting firm, or an I- bank or any Fortune 500 company in the domestic market, go for a Top Indian MBA as opposed to paying 4 times the price.
Style of Teaching
Indian MBA programmes have started catching up with the style of teaching of many international B-Schools. They have introduced case study methods and the students are encouraged to inculcate a collective learning and development by offering team based assignments, and business simulations. Some schools in India have great Faculty and some visiting international faculty.
Average Work experience
If you have worked in the industry for more than three years, you should explore an international MBA as your classmates will be more mature. However, if you are fresh out of college or have worked for over a year or two, you will be more suited for domestic programmes.
In the nutshell, remember that an MBA is gateway to whatever future you have in mind in the business world. Your choice of the schools should match with your target countries, and your target jobs/employers. Once you have the future in mind, go for a program that works best for you.
– The article is contributed by Jatin Bhandari, CEO, Pythagurus
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