A Master’s Degree in Business Administration remains one of the most sought-after courses for graduates in India. As reported by the Economic Times on March 24, 2024, annually, 300,000 aspiring managers appear for the CAT examinations alone to enroll in various colleges across the country.
However, despite the global decline in the popularity of MBA programs, they continue to be a top career choice for graduates in India. This post will explore the reasons for this contradictory global trend
The Indian Growth Story
The pace is set for India to become a $5 trillion economy by the year 2025 in Purchasing Power Parity (PPP). This ambitious goal underscores the importance of advanced business education, such as an MBA, in preparing professionals to drive and sustain this economic growth. Industry analysts predict that this trend is likely to persist for the foreseeable future.
A good MBA program is effective in providing students with a strategic advantage, enhancing their employability, and advancing their career prospects, while also imparting essential business knowledge.
Changing Business Realities in the Digital World
The increasing internet penetration and faster connectivity have led to a surge in digitization across various business functions, including HR, Finance, supply chain management, sales and Marketing. According to a report by Statista, the global internet penetration rate reached 67% in 2021, indicating widespread access to online resources and platforms.
As per ETCIO 2nd, August 2023 edition forty percent companies started their digitization process 2-3 years back and almost eighty eight percent companies began their digitization process 5 years ago.
Business schools are adapting their curricula to incorporate digital skills and technologies. A survey conducted by the Graduate Management Admission Council (GMAC) revealed that 94% of MBA programs worldwide now offer courses on digital business or technology management. Additionally, many business schools have established specialized tracks or concentrations in areas such as digital marketing, data analytics, and information technology management.
Moreover, business schools are integrating experiential learning opportunities, such as consulting projects and internships with tech-savvy companies, to provide students with hands-on experience in navigating digital transformation challenges.
By equipping students with relevant digital competencies, business schools are ensuring that graduates are well-prepared to thrive in an increasingly digitized business environment.
So, on the demand side there is a need for managers who are fully equipped to handle the digitization process and carry out functions in the digital economy.
Placement Assurance and Networking Opportunities
Good MBA colleges prioritize placing their students in advantageous positions. Yet, what truly distinguishes a management professional’s career trajectory is the unparalleled networking opportunities provided by these institutions. These connections link students with peers, alumni, faculty, and industry professionals.
The prominence of professional networking platforms like LinkedIn emphasizes the significance of networking in career progression. Effective professional connections often yield more career opportunities than direct job applications.
Career Enhancement and Better Salary Packages
One of the most compelling reasons to pursue an MBA is the potential for higher salaries and improved career opportunities. According to the Graduate Management Admission Council (GMAC), MBA graduates in India can expect significant salary increases compared to their pre-MBA earnings.
The 2021 GMAC Corporate Recruiters Survey reports that MBA graduates command a median starting salary that is substantially higher than those with only a bachelor’s degree. Working professionals also prefer to do management courses for better growth prospects in the companies they serve.
Entrepreneurial Skills and Start-up Support
Global Entrepreneurship Monitor India Report 2022/23 states that 54% youth are not able to start their own business because of the fear of failure and education and training plays an essential role in building the entrepreneurship ecosystem.
A few MBA programs provide the necessary skills and knowledge to start and manage a successful business, they include modules on entrepreneurship and innovation, and provide support through incubators and accelerators to help the youth kick-start their entrepreneurial journey. This support is crucial for navigating the challenges of the start-up ecosystem.
To Sum Up
Aspiring business professionals see a distinct strategic advantage of holding an MBA degree in India’s competitive job market. From enhanced career opportunities to the development of critical skills, the Management program at CVMU-MBA is carefully designed to help graduates excel in their career choice.
India will continue to grow as a global business hub and the demand for MBA graduates with tech orientation is only going to increase making this degree a valuable investment in one’s career.
