The recent increase in MBA salaries across top business schools in India has gained attention. News headlines praise record-breaking packages and rising average CTCs. But this sharp growth may not continue for long. Several signs suggest that the current salary trend might slow down or even reverse in the near future.
- Average MBA salaries in India rose from ₹14.4 LPA in 2020 to ₹18.2 LPA in 2024 (AIMA, 2024).
- Top IIMs saw a 20–25% hike in median salaries from 2021 to 2023, outpacing GDP growth (IIM Placement Reports).
- 68% of recruiters in India report salary expectations of MBA grads are becoming misaligned with business ROI (GMAC Corporate Recruiters Survey, 2023).
- 42% of MBA employers worldwide indicated a potential slowdown in hiring or flatlining salaries due to economic uncertainty (GMAC, 2024).
- Indian ed-tech–backed B-schools saw a 60% surge in average CTC between 2021–2023, but job roles offered were largely entry-level with inflated titles (NASSCOM-HR Analytics Report).
- Consulting and finance roles offering ₹25+ LPA packages account for only 7% of total MBA hires in India (InsideIIM Salary Tracker, 2024).
- Only 18% of Tier-2 and Tier-3 MBA grads in India earn above ₹10 LPA, despite rising program fees and expectations (MBAUniverse Salary Insights, 2024).
- Post-MBA salary growth rates have slowed from 15% YoY (2018–2020) to under 6% in 2023–24 across global markets (FT Global MBA Rankings Data).
Why MBA Salaries Are Rising
- Increased demand for skilled managers: Startups and growing businesses need decision-makers.
- Shortage of industry-ready talent: Employers are willing to pay a premium for trained professionals.
- Competition among recruiters: Companies compete to attract top talent with high offers.
- Global placements: Some international offers raise the overall average.\
Key Concerns About Sustainability
- Widening Gap Between Skills and Salary: Many fresh MBA graduates lack practical exposure. Companies often provide training after hiring. When skills don’t match salaries, employers may reconsider pay levels in future.
- Economic Slowdown Risks: Global economic conditions affect Indian markets. If funding drops or growth slows, companies will cut costs. Salary packages, especially high ones, are the first to be reviewed.
- Not All MBAs Get High Packages: Â While a few get large offers, most students receive average salaries. Here’s a simple view:
| Category | Package Range (per annum) |
| Tier-1 B-Schools (Top 10) | ₹20 – ₹50 lakh |
| Tier-2 B-Schools | ₹8 – ₹18 lakh |
| Tier-3 and Others | ₹4 – ₹7 lakh |
- This shows that media headlines don’t reflect the complete picture.
- Startups and Layoffs: Many high-paying jobs come from startups. But these firms face funding issues. Some even lay off employees months after hiring. This makes high MBA salaries less reliable.
- AI and Automation: As businesses use more AI tools, they may hire fewer managers. Routine tasks are being automated. This may reduce the need for fresh MBAs in certain roles.
Also Read: Is an MBA Necessary to Succeed in Life?
What the Future Looks Like
- Salaries may grow slowly, not rise fast.
- Recruiters may value skills more than MBA degrees.
- Companies may offer more project-based roles than full-time jobs.
- General management roles may shrink; specialised and niche roles will grow.
How MBA Aspirants Should Respond
| Action Area | Key Response |
| Skill Development | Build practical skills (analytics, project management, communication). |
| Market Awareness | Understand and follow stable, hiring market trends. |
| Career Focus | Prioritise learning and stability over highest package. |
| Company Preference | Be open to opportunities in mid-size companies. |
The rise in MBA salaries is not entirely stable. It is driven by market hype, short-term business needs, and media coverage. The real job market is changing fast. Hence, MBA students should stay updated, learn useful skills, and choose their career path wisely. High packages may come, but real success lies in steady growth and long-term value.
