The Reality of Indian MBAs

Overview

The video uses a “Romesh” story to argue that many Indian MBA aspirants are sold an outcome that is far less reliable than advertised.

Romesh, despite working extremely hard as a software engineer at TCS and later earning a CAT score, only gets into a lower-tier school. After completing the MBA, he returns to TCS but faces a large debt burden and little financial improvement—while less-extreme batchmates who already had MBAs earn far more.

The narrator frames this contrast as the core problem: two people can exert similar effort but achieve radically different outcomes, raising the question of whether the system rewards the “right” things.

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Key claims and analysis

1) High aspiration, low guaranteed payoff

• Over three lakh students take the CAT each year, but fewer than 1% reach tier 1 MBA outcomes.
• The video also claims unemployment risk and low employability after tier 2 programs—stated as less than 7% employable.

2) ROI drops sharply by tier

The narrator compares expected compensation across tiers:

• Tier 1 MBAs:
  • Average 30–35 LPA CTC, with potential higher outliers
  • Fees targeted for roughly 7–10x ROI logic (often 25–30 LPA fees, depending on institute)
  • Example mentioned: FMS Delhi (cited as having higher fees but strong salary averages)
• Tier 2 MBAs: average 10–15 LPA CTC
• Tier 3 MBAs: sometimes 3–5 LPA post-MBA (as stated in subtitles)

The video emphasizes that once you account for CTC vs in-hand salary, the financial gap can be severe—especially after factoring:

• Student loans
• Two-year opportunity cost

3) MBA value is mostly branding and network, not classroom learning

The narrator argues that differences in classroom learning between tiers are smaller than many people assume. Instead, the real differentiators are:

1. Brand name on the resume
2. Hiring network / alumni connections

So “tier” status is portrayed less as “better teaching” and more as the ability to convert students into jobs.

4) India’s large number of MBA programs creates many low-outcome options

With thousands of management institutes, the narrator claims only a small fraction function like true “tier 1” pathways due to:

• weaker brand positioning
• limited alumni reach

5) Alternatives if you can’t reach tier 1

The video suggests options such as:

1. Study abroad (or consider MBA/MIM/specialized masters)

   • Entry is claimed to be easier internationally than into India’s top MBA spots
   • The video argues ROI can still be better than many tier 2 Indian MBAs
   • Includes international exposure
   • Sponsorship: recommends Target Test Prep (TTP) for GMAT/GRE prep, citing personal results.

2. Start working first

   • Avoid debt from immediate MBA funding
   • Build experience that strengthens future MBA applications
   • Help clarify career direction

3. Entrepreneurship / early-stage startups

   • Learn business operations rather than only theory
   • Highlights equity / ESOPs as a potential wealth driver (while acknowledging risk)

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Overall conclusion (“honest take”)

In the narrator’s view:

• An MBA in India only makes sense if you reach tier 1.
• If not, the recommended paths are:
  • specialized masters or study abroad
  • work experience (including startups)
  • entrepreneurship

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Changing labor market warning

The video argues that MBA advantage is declining because employers increasingly value:

• specialized skills
• real experience
• risk-taking

It also claims that many companies now hire based more on demonstrated capability than on degrees alone.

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Presenters / contributors

• Fasil: creator/presenter (also identified as the person who studied at Cornell MBA and as the narrator providing career decision guidance)
• Target Test Prep (TTP): sponsor mentioned (no specific individual spokesperson identified in the subtitles)