Engineering, MBA no longer safe bets? Report suggests low ROI on professional degrees

There was a time in India, and may be it still is when parents want their kids to get into engineering, MBA, and professional degrees apart from medicine, of course. They spend lakhs of their hard-earned money and in many cases take loans for it hoping that their kids will have a better financial future. This belief, however, is being tested now. According to a recent report, India's most sought after degrees have a weak Return on Investment.

1 Finance Global Economic Outlook 2026 reveals a widening return on investment crisis across engineering, MBA, and professional degrees, even from India's top institutions, making one wonder if it's worth vying for an A list college or spending a fortune on them.

What report says

According to the report, a four-year B Tech degree can reach about Rs 34.1 lakh. However, the average starting salary for such graduates is just Rs 4.74 lakh a year.

The situation is similar in management education. Placement data from top B-schools shows that average salaries have either remained flat or declined in several institutes.

Moreover, according to the Unstop Talent Report 2025, 46% of B-school graduates and 83% of engineering graduates in 2025 entered the job market without a job or internship.

Professional courses are also facing similar challenges. Entry-level salaries have not increased accordingly, with fallback roles offering around Rs 3–5 lakh annually. Higher salaries exist in senior roles, but they are limited and take years of experience to reach.

Overall, the report suggests that the gap between the cost of education and the returns it offers is widening across degrees. Rising fees, limited job opportunities and slow salary growth are making it harder for families to recover their investment. It also shows that a degree alone is no longer a guarantee of financial stability. For many, the focus may need to shift from just getting into a top college to choosing courses and skills that actually match current job market demand.

How to choose the right career?Choosing a career with better returns today is not just about picking a degree anymore. It is about understanding what skills are in demand and what kind of jobs those skills can lead to.

The India Skills Report 2026 by ETS, CII, AICTE and AIU shows that employability in India now depends more on digital skills, exposure to AI and how job-ready a person is, rather than just their academic qualifications.

A hiring report cited by Coursera also points in the same direction, noting that most Indian employers now prefer candidates with relevant skills, especially in areas like AI and technology, over those with only traditional experience.

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