Degrees Cost Lakhs, Returns Take Decades

For generations, Indian families relied on education as a path to stability, but this belief is now challenged by rising costs and uncertain returns.

Recent data indicates a deepening return on investment (ROI) crisis for popular degrees like engineering and MBA. For instance, a BTech degree from a private college, coupled with 13 years of schooling, could cost around Rs 34.1 lakh. Even with optimistic salary growth, recovering this investment might take over two decades, after factoring in inflation and living expenses.

The disparity is also evident within the tech sector. Graduates in AI and machine learning roles earn 20-40% more than those in traditional IT positions. This highlights how specialization can drastically impact earning potential, making the specific branch of study as crucial as the degree itself.

Similarly, the MBA market faces an oversupply of graduates from over 5,000 institutions, while quality corporate jobs have not kept pace. This imbalance is reflected in declining placement salaries, even at top B-schools, with nearly a quarter of graduates from elite institutions remaining unplaced.

Structural issues driving this shift include costs rising faster than salaries, an expansion of higher education outpacing job growth, and curricula lagging behind market demands. Employers increasingly seek skills like AI fluency, data analysis, and problem-solving.

While a credible degree with relevant skills can still transform lives, expensive degrees with weak placements or outdated teaching may prove to be poor financial decisions. The focus is shifting from prestigious degrees to those that deliver tangible outcomes, emphasizing skills, affordability, and employability over mere certificates.