The MBA is known for being an expensive graduate degree. At top business schools in the US, total fees can reach more than US$200k.

While study costs in India don’t reach the same levels as US-based MBAs, tuition fees at the prestigious Indian Institutes of Management (IIMs) still range from INR 17 lakh (approx. $19,000) to INR 27 lakh (approx. $30,000).

Unsurprisingly then, for most students aspiring to pursue a Master’s in Business Administration (MBA), one of the most important benchmarks when choosing a business school is the return on investment (ROI). Particularly in a vast geography like India, ROI is about how soon you can recover your study costs, find relevant and desirable career paths, or find a role that has global impact. A shorter payback points to a better investment.

While the cost of management education in India varies widely, the link between the strength of a b-school brand, salary outcomes, and recruiter diversity also influences what constitutes a ‘good ROI’. The true return lies not just in recovering your invested finances, but also through sustained employability, staying globally relevant, and becoming a specialist in your industry.

Indian b-schools with a consistently good ROI over the years—albeit through different fee structures and types of academic institutions—include Faculty of Management Studies (FMS), Delhi; IIM Ahmedabad (IIM-A); and Xavier School of Management (XLRI) Jamshedpur.

Let's look into the return of studying at one of these three b-schools in more detail.

Faculty of Management Studies (FMS), Delhi: great value MBA

FMS Delhi is a popular example of a low-cost, high-return management education in India. Being an institution under the University of Delhi, a central government university, allows it to offer an MBA program that is financially accessible, yet delivers competitive placement results.

Analysis of the institute’s most recently available official placement report (for 2023), reveals notable results. With the per semester fee for the two-year program at ₹57,350 ($650) and the average CTC higher than ever at ₹34.1 lakh ($38,830), this means the payback period is just a few days.

For the 2020–22 cohort, FMS recorded an average CTC at ₹32.4 lakh ($36,890) per annum, meaning a similar ROI or payback period year on year.

The top 10% of graduates in 2023 secured gross annual salaries at ₹68.16 lakh ($77,600). This makes the ROI almost instant, achieving an unparalleled ROI within b-schools in India. Nearly 50% of the batch secured salaries of more than ₹30 lakh ($34,160) per annum.

FMS attracts leading global recruiters 

FMS’s low fee does not translate to low reputation among employers. The 2023 placement data shows strong demand, with 97% of offers being above ₹20 lakh per annum ($22,775). Key sectors where there were significant placements included consulting, general management, sales and marketing, and finance. Leading global recruiters such as Amazon, Microsoft, American Express, and Paytm regularly recruit from the campus for sought-after roles in product development, program management, among others.

FMS ranks second in the government b-schools category of the Indian Institutional Ranking Framework (IIRF), a ranking system that assesses more than 2,000 academic institutions across India. This indicates a strong value proposition among Indian management education institutions. 

READ: How Are IIM Placements & Average Packages For MBA Graduates?

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IIM Ahmedabad (IIM-A): top Indian brand with quick payback

IIM Ahmedabad has been seen as one of the most prestigious management education institutions in India for decades. While the institute commands a high fee, its powerful brand value ensures graduates earn the highest salaries, leading to a fast and guaranteed return on capital.

The total program fee for the two-year MBA program is a substantial ₹22 lakh ($25,000) per annum, hiked in 2018 as per the institute’s official website.

Nevertheless, students aspire to gain admission to IIM-A while accepting the higher costs, seeing them as justified by the possibility of high placement packages and opportunities.

Based on audited placement data released under the Indian Placements Reporting Standards (IPRS), using the conservative and reliable figure of the mean total guaranteed cash component of ₹30.08 lakh per annum ($34,250) for 2025, the payback period is calculated at approximately eight months. A financial ROI achieved within a year shows great confidence in the IIM-A brand.

Similarly, for 2024 and 2023 it was ₹29.03 lakh per annum ($33,000) and ₹28.68 lakh per annum ($33,651) approximately, indicating a payback period of 9 months. 

IIM-A offers global appeal and is consistently highly ranked

IIM-A’s global standing is also reflected in the QS Global MBA Rankings 2025, where it ranked ninth in Asia and achieved an ROI score of 88.9. 

The school's ROI is not just restricted to financial return: with the institute being a primary choice for high-value sectors in terms of hiring new talent, it provides global-level exposure, experience, and opportunities for graduates.

IIM-A's 2025 placement report highlights consulting (156 offers) and banking, financial services and insurance (BFSI) (99 offers) as the largest recruiters, ensuring high starting remuneration. As many as 187 pre-placement offers were awarded. This high employer return rate signifies a constant and powerful alumni network and top global recruiter base.

In terms of the rankings, IIM-A has been consistently ranked among the top b-schools in India by the National Institutional Ranking Framework (NIRF) since 2020. Given the status of an Institute of National Importance by the government of India, it is ranked 58th on the QS Global MBA Rankings 2026.

READ: The Top 10 Private MBA Colleges In India

XLRI Jamshedpur: a surplus of job opportunities

XLRI Jamshedpur, and its other campus at XLRI Delhi NCR, has also offered good ROI consistently over the years.  

More than 600 offers were made by 172 recruiting entities for a batch of 591 students, including 41 new recruiters for the school's graduating class of 2023-25 across the esteemed two-year PGDM (BM) and two-year PGDM (HRM) programs. This indicated a surplus of job opportunities (more offers than students), ensuring nearly every student is placed and likely has a choice among multiple high-paying offers.

With 34.17% of the cohort receiving pre-placement offers (PPOs), it means students secured high-value jobs months before graduation. This speeds up the payback period, as the cost of opportunity that comes with the second year of study is mostly justified by a confirmed, high-paying role.

Additionally, a large and growing recruiter base shows strong brand value and trust within the industry. With new hirers annually entering the pool to compete for top talent, this provides a boost to average salaries and ensures continuous high placements.

XLRI enjoys high offers and early placement

According to data from XLRI’s official placement report for the 2023-2025 batch, the median salary offered to the batch was ₹29 lakh per annum ($33,000), with the top 10th and 25th percentile average being ₹52.03 lakh ($59,244), and ₹44.35 lakh ($50,500) per annum, respectively.

The average salary offered to the batch was ₹31.08 lakh per annum ($35,390), with the highest international offer of ₹1.10 crore ($1,25,250) per annum and the highest domestic offer of  ₹75 lakh per annum ($85,400).

The fee for the two-year PGD (BM) /PGD (HRM) is approximately ₹15.3 lakh per annum ($17,420). This shows a payback period of around one year, which is considered excellent.

The job market and industry sentiment show sectors where XLRI graduates excel. These included consulting, BFSI, and sales and marketing.

Major recruiters from the most recent cohort included Boston Consulting Group (BCG), Accenture Strategy, HUL, ITC, and American Express, making the highest number of offers among established hirers.

For the PGP (GM) program at XLRI, students typically recover their total program fee of ₹25.9 lakh ($29,490) within about 11 months, reflecting a strong ROI. Average salaries for graduates have remained competitive over the past few years, showing consistent growth: ₹29.4 lakh ($33,470) in 2022–23, ₹27.07 lakh ($30,820) in 2023–24, and ₹28.7 lakh ($32,675) in 2024–25. This demonstrates that XLRI students are able to recoup their costs quickly while benefiting from high-paying opportunities.

While the numbers provide a snapshot of the immediate returns gained by students at these three schools, the real ROI of such institutions lies beyond the financial aspects. It is a reflection of their credibility, reputation, consistency, and the exposure they provide to students and young professionals at a global level to excel in their respective sectors and domains. These institutions show how valuable education can be beyond the classroom through global readiness and long-term career outcomes.