Cost of MBA Education in India to increase by an average 20 per cent
Management education in India is poised to become more expensive with at least 10 of the country's leading MBA collegeseither hiking their fees or contemplating an increase of anywhere between 6-19% by 2016, reports a leading national daily.
Soaring inflation and administrative expenses have made an increase in the MBA fee, unavoidable. Well-known B schools such as XLRI Jamshedpur, International Management Institute (IMI) Delhi, MDI Gurgaon, SP Jain Institute of Management & Research, XIM Bhubaneswar and IIM Ranchi have already affirmed the fee hike, other institutes like IIM Calcutta, IIM Kozhikode, IIM Udaipur will finalise the fee in the coming two-three weeks. The increase in the cost can be anywhere in the range of Rs. 50,000 to Rs. 2.5 lakh, depending on the colleges.
These fee hikes - including those under consideration - come at a time MBA's popularity seems to have waned somewhat. Nonetheless, most B-schools say these hikes simply couldn't be put off given inflation, higher administrative expenses and the rising salary levels of faculty members.
IIM-Calcutta, for instance, has not increased its fees for the past four years now. Its last hike was by 50% to Rs. 13.5 lakh in 2010. Now, chances are high for raising the fees to Rs.16 lakh, up almost 19%.
IIM-Udaipur, whose current fee for the two-year program is Rs. 8 lakh, may increase it to Rs. 9 lakh this year, according to Director Janat Shah. "This will be the first time we are increasing fees since we came into existence," said Shah.
Meanwhile, IIM Ahmedabad (Rs. 16.6 lakh) and IIM Bangalore (Rs. 17 lakh) have decided to not increase their fees this year. IIM-Tiruchirapalli, IIM-Kashipur and IIM-Lucknow, too have resisted from hiking their fees.
Many renowned non-IIMs have also opted for fee hikes - XLRI will raise its fees by 7% from the current Rs. 14.6 lakh to Rs. 15.6 lakh.
Top business schools in the US too are witnessing MBA tuition hikes. According to the Bloomberg Businessweek, the MBA class of 2016 an additional average hike of 4 per cent on top of the 37 per cent increase in the last 6 years.
Soaring inflation and administrative expenses have made an increase in the MBA fee, unavoidable. Well-known B schools such as XLRI Jamshedpur, International Management Institute (IMI) Delhi, MDI Gurgaon, SP Jain Institute of Management & Research, XIM Bhubaneswar and IIM Ranchi have already affirmed the fee hike, other institutes like IIM Calcutta, IIM Kozhikode, IIM Udaipur will finalise the fee in the coming two-three weeks. The increase in the cost can be anywhere in the range of Rs. 50,000 to Rs. 2.5 lakh, depending on the colleges.
These fee hikes - including those under consideration - come at a time MBA's popularity seems to have waned somewhat. Nonetheless, most B-schools say these hikes simply couldn't be put off given inflation, higher administrative expenses and the rising salary levels of faculty members.
IIM-Calcutta, for instance, has not increased its fees for the past four years now. Its last hike was by 50% to Rs. 13.5 lakh in 2010. Now, chances are high for raising the fees to Rs.16 lakh, up almost 19%.
IIM-Udaipur, whose current fee for the two-year program is Rs. 8 lakh, may increase it to Rs. 9 lakh this year, according to Director Janat Shah. "This will be the first time we are increasing fees since we came into existence," said Shah.
Meanwhile, IIM Ahmedabad (Rs. 16.6 lakh) and IIM Bangalore (Rs. 17 lakh) have decided to not increase their fees this year. IIM-Tiruchirapalli, IIM-Kashipur and IIM-Lucknow, too have resisted from hiking their fees.
Many renowned non-IIMs have also opted for fee hikes - XLRI will raise its fees by 7% from the current Rs. 14.6 lakh to Rs. 15.6 lakh.
Top business schools in the US too are witnessing MBA tuition hikes. According to the Bloomberg Businessweek, the MBA class of 2016 an additional average hike of 4 per cent on top of the 37 per cent increase in the last 6 years.
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