In India, the aspiration for children to pursue engineering, MBA, or other professional degrees has long been a cultural norm. Parents often invest substantial amounts of money, sometimes resorting to loans, with the hope that these educational paths will lead to a prosperous future for their children. However, recent findings suggest that this belief is increasingly being challenged.
A recent report from the Finance Global Economic Outlook 2026 sheds light on a troubling trend: the return on investment (ROI) for some of the most coveted degrees in India, including engineering and MBA programs, is declining. This raises critical questions about the value of attending prestigious institutions and the financial burdens associated with them.
According to the report, the cost of obtaining a four-year B Tech degree can soar to approximately Rs 34.1 lakh. In stark contrast, the average starting salary for graduates in this field is merely Rs 4.74 lakh per year. Such a disparity highlights the growing concern regarding the financial viability of these educational investments.
Management education is facing similar challenges. Data from top business schools indicate that average salaries for graduates have either stagnated or even declined in some cases. The Unstop Talent Report 2025 further emphasizes this issue, revealing that a staggering 46% of B-school graduates and 83% of engineering graduates are entering the job market without securing a job or internship.
The Impact on Professional Courses
Professional courses are not exempt from these challenges either. Entry-level salaries in various fields have not kept pace with rising educational costs, with fallback roles offering salaries ranging from Rs 3–5 lakh annually. While higher salaries exist for senior positions, they are often limited and require years of experience to attain.
The report underscores a widening gap between the costs associated with education and the financial returns it provides. Factors such as escalating fees, a scarcity of job opportunities, and sluggish salary growth are making it increasingly difficult for families to recoup their investments. It is becoming increasingly clear that a degree alone no longer guarantees financial stability.
Shifting Focus: Skills Over Degrees
In light of these findings, students and parents may need to reconsider their approach to higher education. The emphasis may need to shift from merely gaining admission to a prestigious institution to selecting courses and skills that align with current job market demands.
The India Skills Report 2026, produced by ETS, CII, AICTE, and AIU, indicates that employability in India is increasingly dependent on digital skills, familiarity with artificial intelligence, and overall job readiness rather than solely on academic credentials. This shift in focus is crucial for students aiming to enhance their employability in a competitive job market.
A hiring report referenced by Coursera echoes this sentiment, revealing that many Indian employers prioritize candidates with relevant skills—particularly in technology and AI—over those who possess only traditional qualifications. This trend suggests a significant transformation in the hiring landscape, emphasizing the importance of adaptability and skill acquisition.
Making Informed Career Choices
Choosing a career path today requires more than just selecting a degree; it necessitates a thorough understanding of the skills that are in demand and the types of jobs those skills can lead to. Students should actively seek out opportunities to develop competencies that align with industry needs, such as internships, online courses, and practical experiences.
As the job market evolves, so too must the strategies for career planning. By focusing on skill acquisition and staying informed about industry trends, students can position themselves for success in an increasingly competitive environment.
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