The Astronomical Cost of Management Education in India

Today the Indians are proud of having a number of high quality business schools in their country – IIMs, XLRI, ISB, IBS, etc. Lots of Indian youths are gaining degrees/diplomas in their chosen fields from these institutes, and are making their marks in the Indian as well as global corporate scenario.

But there is a hitch, and that is the astronomical cost one has to face for studying in these institutes. Most of these institutes (if not all) charge fees that are well beyond the capacity of middle class parents. And so while some parents have to go out of their way to pay the fees of their children’s dream management education, some parents have to completely back out, with a heavy heart of course.

I got a taste of the plight of these hapless parents, when one of my close friend's (he also stays in Delhi) sister-in-law got selected for an MBA program of IBS, Hyderabad. Apart from their main campus in Hyderabad, IBS also conducts their programs from two campuses in Gurgaon (a satellite town of Delhi) and Kolkata. My friend's sister-in-law got selected for the Kolkata campus.

So far it was OK. But now came the real blow. Because now came the time for paying the fee. And what is the amount? It is Rs. 7 lakhs. Yes, you have read it right.

As of today, my friend's father-in-law is running from pillar to post to arrange for the money. He has applied for a loan from Punjab National Bank. And he is tired of fulfilling all the formalities. Now the entire family has only one worry – how to arrange for the money.

My friend's father-in-law had this cherished wish that his daughter would enroll for a Management program conducted by a prestigious institute. This dream has come true. But with such a price, that he may be considering it to be his nightmare now.

Shouldn’t the Indian government think about the problem? Hope they will take some steps to ensure that management education (and other job-oriented programs as well) remain within the capacity of the middle class students. That will be a much better way to serve the Indian student society, rather than going for steps like caste-based reservations in prestigious institutes.