Pursuing a Master of Business Administration (MBA) degree can advance your career and increase your earning potential. Before making this decision, however, you may want to explore the average MBA salary in India. Getting an idea of how much you can earn after an MBA can help you make an informed decision. In this article, we will discover the starting, average and minimum salary after MBA and explore the fields where you can work after earning this degree.
National average MBA salary in India
According to National Institutional Ranking Framework, the average MBA salary in India ranges from ₹6,00,000 to ₹23,00,000 depending upon the ranking of the business school (B-School).
For example, the average salary of the Indian Institute of Management (IIM) Ahmedabad and Bengaluru is ₹23,00,000. Also, the average salary for a lower-ranked institute like Xavier Institute of Management (XIMB) is ₹14,16,000 and the Institute of Management Technology (IMT), Ghaziabad is ₹11,00,000. The average salary may also vary based on the prior work experience and skill set of the MBA graduate.
Factors that affect the average salary after an MBA
Pursuing an MBA may be a rewarding decision because of the higher salary and growth potential. If you are planning to pursue an MBA for increasing your salary, you should know the factors that can contribute to this increase:
B-Schools fall into different tiers. Schools in the Tier 1 category have a higher reputation than those falling in Tiers 2, 3, 4 and 5. Due to this reputation and brand recognition, the average salary offered to MBA graduates passing from Tier 1 schools is higher than those graduating from other categories. Finding a reputable and accredited B-School can help you get a higher salary package.
Another factor determining your salary is the number of years of work experience you have before enrolling in such a degree course. Those who have prior work experience may receive a higher salary upon completing their post-graduation. Also, certain B-schools give preference to candidates with work experience during the admission process. It can help you get into the B-school of your choice. Furthermore, many companies prefer hiring candidates with prior work experience as it becomes easier to train them in a new work environment.
Demand for the skills and specialisation
Those with specialisations like data analytics or bioscience may get a higher salary because fewer candidates have that expertise. Also, if you possess any unique skills like digital technology, you may earn a higher salary because of the benefits you bring along. Also, employers prefer candidates with problem-solving, critical thinking and conflict resolution skills as these helps in accomplishing the daily goals.
What is the starting salary for an MBA in India?
The starting salary varies depending on the rank of the B-School, type of industry and job role. For example, the national average MBA salary in India of an entry-level public relations manager is ₹3,57,820 per year. An analyst earns ₹5,59,389 per year, while a product manager's national average salary is ₹8,20,207 per year.
MBA graduates can choose from a variety of career options. Their specialisation will guide them towards different fields like business operation, information technology, healthcare, management, analytics and entrepreneurship, to name a few. As the scope for management jobs is likely to increase in the country, an MBA degree can improve your chances of standing out among competitors and earning a higher starting salary.
What is the minimum salary after MBA?
If you get a job as a marketing executive, the minimum salary after MBA would be ₹2,34,203 per year. The minimum salary depends upon your MBA specialisation, years of experience and skill set. Also, as you pay fees for attending an MBA school, it is important to know the minimum salary you can expect. It will help you understand the return on your investment.
Does an MBA increase your salary?
Generally, you can expect a salary increase after getting an MBA degree. However, other factors may affect your salary figures, such as the type of B-School you attended or your past work experience. For example, a student who completes an MBA from a Tier 1 school is likely to have a higher increase in salary than someone who post-graduates from a Tier 2 or Tier 3 school.
Also, the salary varies depending on the type of MBA course you choose. Full-time MBA courses usually offer a higher increase in salary. Your field of specialisation may help in commanding more salary. When you specialise in a high demand field, you can always expect a higher increase.
Is an MBA valuable in India?
An MBA degree is valuable in India because of the country's growing entrepreneurial culture and rapid adaptation to technology. The degree course teaches managerial, technical and leadership skills that a student requires for managing and successfully operating a business. MBA programmes in the country promise education on core business topics, ensure higher earning potential and expand your professional network. This helps in building a successful career.
Many top executive positions like Chief Financial Officer (CFO) and Chief Operating Officer (COO) often require candidates with an MBA. If you plan to advance in your career and want to achieve a C-level executive position, earning an MBA degree may be the best option for you.
What field can you work in after an MBA?
Though an MBA degree primarily focuses on business administration, many fields employ MBA candidates. Some of these fields are:
A business may face challenges and hurdles like time management, team efficiency and project management. To overcome these challenges, organisations prefer to hire MBA holders who understand the operations of a business and can implement beneficial business practices. They also help in improving the way an organisation operates.
Candidates with an MBA can easily enter the field of consulting and become business, management, IT or education consultants. These professionals provide their analysis, recommendations and expert opinions to help organisations successfully manage and run their business. Using their expertise in a specific field, they guide a company to reach from their current state to the desired state.
An MBA degree can help a candidate enter healthcare management as an administrator. In such a role, a candidate is responsible for managing the overall workflow of the medical facility. They also create new policies based on government regulations and create budgets for the proper functioning of the facility.
Banking and finance
With an MBA degree in finance, a candidate can easily enter the lucrative field of banking and finance. Some of the common job roles in this field are investment banker, financial analyst, credit manager, corporate controller and finance officer.
With organisation using different technologies to carry out their daily activities, they need employees who can manage every aspect of IT like cloud management, data security and technical infrastructure management. Some of the common job roles in this field are information system manager, data processing manager, system manager, IT manager and corporate strategy manager.
To market their product and service to their potential customers, organisations look for candidates who have mastery over advertising, campaigning and communication strategies. They basically help in promoting the sales of an organisation. Some common job roles in this field are marketing manager, brand manager, media strategist, digital media analyst, customer relationship manager and product manager.
5 High-paying jobs after MBA
Here are five jobs that pay a higher salary to candidates with an MBA degree. Based on your interest and post-graduate specialisation, you can choose your career path:
National Average Salary: ₹6,42,071 per year
Primary Duties: These consultants meet with clients and discuss an area where the organisation needs improvement and develops strategies to implement the proposed changes. They help an organisation improve their business performance.
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National Average Salary: ₹11,53,098 per year
Primary Duties: These professionals are primarily responsible for formulating and refining strategies and financial projects of an organisation. They also manage the long-term planning and budgeting process.
National Average Salary: ₹7,21,494 per year
Primary Duties: A general manager oversees all budgets and operations of a business. They plan strategies, establish policies and manage people. These professionals identify growth opportunities, facilitate cross-business unit initiatives, evaluate financial models of a merger, monitor long-term business trends and contribute to strategic business planning discussion.
National Average Salary: ₹5,40,951 per year
Primary Duties: These professionals perform valuation and financial analysis using various methods to understand the impact of a merger and acquisition transaction. They also participate in every stage of transaction execution and coordinate efforts with the deals team and other advisors.
National Average Salary: ₹4,70,460 per year
Primary Duties: They are responsible for the function and administration of technology in an organisation. An information systems manager typically manages all the policies and documentation and focuses on product development, application support and database administration to all users in the organisation. They also install documents and perform various software and hardware upgrades.
Please note that none of the companies mentioned in this article is affiliated with Indeed.