Ndanags
Why should I pursue at ISB when cost of MBA is around 50 lacs? Is it overrated??
The perspective you adopt significantly shapes your view on the ROI of top Indian MBA programs. If you assess it through a short-term lens, you might find the ROI relatively modest for most premier Indian business schools, whether it’s a 2-year program from IIM BLACKI, FMS, or XLRI. The total cost of these 2-year programs typically amounts to around 25-30 lakhs. However, when you factor in the opportunity cost—the income you forgo during those two years—the overall investment becomes even more substantial.
If you’re already well-compensated—earning over 30 LPA—and satisfied with your current role without any intention to pivot, the value of pursuing such a program may indeed feel diminished. In that case, it could be perceived as unnecessary.
However, for someone looking to pivot their career or fast-track their professional growth, the efficiency of ISB’s 1-year program offers significant advantages. You return to the workforce much quicker and start reaping the benefits earlier, making ISB an attractive option for those concerned about opportunity costs.
This isn’t a question with a single correct answer; it is deeply subjective and individual. While I understand your point of view, I personally believe that investing in a top program, whether it’s a 1-year or 2-year MBA, remains a positive NPV (Net Present Value) decision, even if the break-even point may vary. Historical data consistently suggests that the long-term gains from such investments are substantial, with significant career deltas over time.
In contrast, ISB charges around 50 lakhs in fees but offers the advantage of a 1-year program, which significantly reduces the opportunity cost. Since ISB students re-enter the workforce a year earlier, they can start earning much sooner. Over a 2-year period, when you account for both the fees and the opportunity to earn during the second year, the net cost of attending ISB comes down to around 15-20 lakhs. Moreover, with median salaries at ISB typically in the range of 30-35 lakhs, ISB graduates often reach a positive financial position by the third year, ahead of their peers from 2-year programs who are just breaking even.