Trend will Con­tinue

The Economic Times - - Deep Fo­cus -

Between 2007 and 2016, in­fla­tion as mea­sured by the Con­sumer Price In­dex (CPI) for in­dus­trial work­ers (IW) rose at a com­pounded an­nual growth rate (CAGR) of 8.6%. Dur­ing the pe­riod, fees at the top man­age­ment in­sti­tutes in the coun­try rose by 12-19%.

Ex­perts, how­ever, reckon that this trend of fee in­creases will con­tinue. “Man­age­ment ed­u­ca­tion, glob­ally, is an ex­pen­sive propo­si­tion. In­sti­tutes have to in­vest a lot of money in case stud­ies, fac­ulty salaries, in­clud­ing vis­it­ing pro­fes­sors, in­ter­na­tional col­lab­o­ra­tions where stu­dents and teach­ers are ex­posed to other mar­kets, among other things,” says Ro­hin Kapoor, di­rec­tor at Deloitte in In­dia. Ear­lier, this was largely sub­sidised, he said.

“Now, in­creas­ingly, the think­ing is that stu­dents who pass out from these top in­sti­tutes get good/above av­er­age salaries and should not find it dif­fi­cult to re­pay their loans. Also, for peo­ple from eco­nom­i­cally chal­lenged back­grounds, there are fee waivers,” Kapoor said. Grad­u­ates of top In­dian man­age­ment schools get av­er­age start­ing an­nual pay of .₹ 13-18 lakh dur­ing place­ments.

For in­sti­tutes op­er­at­ing in de­vel­oped mar­kets, tu­ition fees for man­age­ment pro­grammes have al­ready reached a cer­tain level, with in­creases lim­ited to 3-4%, usu­ally in line with cost in­fla­tion. “Go­ing for­ward, even fees at In­dian in­sti­tutes will sta­bilise,” Kapoor said.

Glob­ally, there are at least four Bschools that charge above $200,000 as the to­tal cost of a full-time MBA pro­gramme.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.