What is the Value of a Foreign MBA in India? Is it Worth Doing?

The number of Indian students seeking MBA programs abroad is increasing day by day. However, before making such an investment, there are several questions that pop up in our minds. Firstly, which is the more valuable MBA degree, Indian MBA or foreign MBA? Another question is, what is the value of international MBA in India? 

The decision to study MBA abroad is not an easy one since it requires a lot of hard work and also comes at a high cost. Through this article, we will understand what value does a foreign MBA has in India. It is important to ask yourself why you want to pursue an MBA in the first place and why from abroad? Your purpose in pursuing this degree maybe for a career change, a higher salary, or any other reason.

Key Facts to Evaluate the Value of Foreign MBA Degree in India

Listed below are some of the key facts to assess the value of foreign MBA in India and what an MBA aspirant should look for when pursuing an MBA from abroad. You shall also find the answer to the question if is foreign MBA is valid in India?

1. Indian corporations seek international MBA graduates

Globalization has led to companies in India wanting to expand their businesses and looking for candidates who have graduated from reputed international colleges. Companies hire you for your knowledge of international business standards.

Several top-tier schools, including Harvard and London Business School, have a very high brand value. The MBA program at a B-school abroad involves case studies, global trips, and study methods. Their program structures and specializations are more flexible than those offered by Indian B-schools. Studying abroad gives you more practical experience. In addition to the charm of doing an MBA abroad, the great learning experience linked to it is also what motivates applicants to pursue MBA at a reputable B school overseas.

2. Consider all aspects carefully

You must analyze the following aspects before pursuing an MBA abroad:

• It certainly makes a difference on your CV if you do your MBA abroad. In India, an MBA degree from a reputable university abroad is highly valued. It is important to keep the word 'reputed' in mind since your post MBA graph will vary depending on where you completed your MBA. 
• Most of the international B-schools with top rankings are expensive and hard to get into. Particularly, students who belong to middle-income groups are left with few choices of attending less-expensive and lesser-known colleges. While some of these schools are genuine, the majority are not.
• Most companies maintain a list of qualified universities, so if a particular university isn't on that list, you aren't likely to be hired. Remember that employers look at rankings and reputation when considering applicants.
• A number of low-ranked foreign universities claim to offer bright futures to Indian students, but this isn't true. A lot of universities that aren't well known do not provide placement opportunities. Don't be fooled by advertisements, but rather do your own research.
• Be sure to check the following points before choosing your B-school: How well-recognized is the B-school? Do you know any prominent alumni? How is the placement rate? Is there any good career service?
• You will be able to find information about a particular B-school on the internet. If you do not find any relevant information, it is always a good idea to connect with past and present students of the university. For alumni and school contacts, social networking sites like Facebook are useful.

3. Analyze the ROI

It is undoubtedly true that MBA admission at Harvard is both difficult and expensive. It costs about INR80 lakhs for the course, compared to top-rated IIMs in India charging INR 20 lakhs for the full course fee. Besides this, the eligibility criteria of 700 to 750 GMAT scores, excellent academic credentials, and quality work experience are also some challenging requirements. 

However, if you look at the ROI (Return on Investment), you will understand why candidates wish to pursue an MBA program from Harvard. Harvard's MBA program puts a great deal of emphasis on research and academics, as well as corporate placement. MBA students from Harvard can expect to get a placement package of US$ 1.25 lakhs per annum (roughly INR 75 lakhs) on average rather than top IIM students who get a package of around INR 17-20 lakhs annually.

ROI in both cases is not significantly different since you recover your costs within the first year of employment. In the next few years, however, the differences may become noticeable when the HBS graduate earns around INR 75 lakhs while the IIM graduate will earn around INR 20 lakhs per year. The differences explain why Harvard is preferred by the candidates. 

Please refer to the following table for more clarity:

Indian B-Schools	Average Salary	Top B-Schools Abroad	Average Salary
ISB	INR 18 lakhs	Harvard	INR 78 lakhs
IIM A	INR 19 lakhs	Wharton	INR 78 lakhs
XLRI	INR 16.25 lakhs	National University of Singapore	INR 38 lakhs
IIM C	INR 18 lakhs	IMD Switzerland	INR82 lakhs

4. Asian B schools: Growing MBA weightage

Admission to Stanford or Wharton is not easy for everyone. If you do not get into top B-schools like Harvard or London Business School, look for viable alternative options such as B-schools in Hong Kong, Singapore and China. MBA programs in these countries are more affordable and shorter. Although the alumni community in Asian B-schools might not be as large as that of some top US B-schools, you will gain valuable skills and will be able to contribute to the local market.

5. India: Growing Market for MBAs from Abroad

The growth rates of the Indian economy are high, and job opportunities for business graduates are increasing. Hence, if you receive your MBA from a reputable B-school overseas, you will be at a competitive advantage. As a result of global uncertainty, placement patterns have been affected, and you should choose your institutions wisely. 

Is an MBA from Abroad Helpful in Finding a Job in India?

If a country offers a post-study work visa, MBA graduates usually prefer to work abroad. However, for those who cannot get a post-study work visa, returning to India is the only option that they have. As mentioned earlier, the name of the business school from which you obtained your MBA can be a major factor in landing you an impressive job opportunity in India. You could be sure of a handsome return on investment if you graduated from a tier 1 business school. However, a degree from a less-popular B-school might not be as rewarding as expected.

Average Salary Package for MBA Graduates in India

The first question that arises is how much salary can be considered above average. Consider the salary packages of some of the leading B-school graduates in India, such as IIMs and ISB. Graduates from these schools usually receive INR 15-18 lakhs, which is a decent amount considering the Indian scenario. 

If you view this scenario from the employer's perspective, you will understand why you are being paid that much. The international exposure you have gained should also benefit the company in which you are working. In that case, if you are specifically providing something concrete to your company, you can negotiate a handsome salary.

As an example, if you've worked for any IT company overseas and have learned some special techniques that can definitely lead to reduced operating expenses and eventually higher profits, you can expect a good hike in your salary. This, however, will not always be the case.