Despite having over 3000 B-schools all over India, there are hardly any MBA colleges apart from IIMs and few private colleges like XLRI & ISB that stands at par with International standards. Moreover, the competition is so high that out of 2 lakh applicants only 1% students reach to these top B-schools. Meanwhile, due to lack of quality educational institutes and rising competition, more and more students are moving out to pursue education abroad under International environment to have global exposure.
IIMs are a league apart, so choosing a foreign university over IIMs hardly makes any sense. Therefore, the question boils down to whether to pursue a degree from an average B-schools in India or to look for an option abroad?
When it comes to foreign countries that provide world class MBA programs US, UK, Canada and Australia are some of the most favoured countries that students look to explore. Due to very tough restrictions on international students who want to stay and work in US and UK, Canada and Australia are becoming the next potential destination by attracting the talented students to their programs.
But would it be worth it to study MBA from a country like Canada? Are there any major benefits of studying in Canada? What will be the cost of studying in Canada? Is there any salary difference between India and Canada? How long would it take to get return on your investment keeping in mind the high expenses?
These are some critical questions that, I believe, every MBA aspirant encounters while thinking of studying abroad. Here would like to critically analyse the major benefits of studying MBA in Canada over studying in India
MBA programs in Canada are typically divided in two parts: 2-year programs from universities, and 1-year program from colleges. Most of the Canadian universities require a work ex. of minimum 3 years, unlike Indian colleges where one can pursue MBA straight after graduation.
With over 80 universities and colleges offering MBA programs, Canada not only offers conventional MBA programs like finance, marketing, and HR, but also offers management courses from varied field like sports management, entrepreneurship, etc. Students also have the luxury to customise their electives.
Studying in Canada is lot cheaper when you compare it with US, UK, and Australia because almost all universities in Canada is funded and overseen by the federal and local government. However, the cost is bit on higher side when you compare it with the global average. Despite various scholarships available for master’s program, there are scarcely any for MBA programs. So, the students have to bear all the cost of studying MBA.
MBA from Universities costs around CAD$ 70000 -100000 (Rs 35–50 lakhs), however the 1-year MBA program form colleges costs CAD$ 30000–40000 (Rs 15–20 lakhs). Accommodation and living expenses in Canada costs CAD$ 10000 (Rs 5 lakhs) per year. On the other hand, Indian B-school charge Rs 15–25 lakhs for pursuing a 2-year MBA program.
Employability and Salary Expectations
According to the QS TOPMBA.com report, almost 90% of students from top Canadian universities get placed every year with an average pay of CAD$ 90000 (Rs45 lakhs) and median pay of CAD$ 80000 (40 lakhs).
Under Student Partnership Program (SPP), it is mandatory for colleges providing 1-year MBA to maintain 80% employability rate. Students pursuing this program get placed with an annual salary of around CAD$ 60000-72000 (Rs 30–36 lakhs).
In India, only students passing from top universities get an average package of Rs 15–20 lakhs, while average package of around Rs 6–10 lakhs from other private colleges.
Return on Investments
One of the reasons why MBA students flock to Canada is due to its work laws upon graduation. Under their law, students can extend their visa up to 3-years or 1 -year after completing a 2-year or 1-year degree respectively. Due to these work permit rules students can pay the loans easily because now they will earning in CAD$ and paying in Indian Rupees.
According to the same report of QS TOPMBA.com, it takes around 44 months after completing 2-year MBA to recoup the initial payments considering both the program cost and forgone salary of earlier job. While it takes 2-years for 1-year MBA graduates. On similar lines, students passing from Indian B-schools payback in around 3–4 years.
The returns after MBA plays out over the entirity of one’s career. According to the study, those pursuing MBA from top Canadian universities are better off by CAD$ 670k (Rs 3.35 Cr.) within 10-years.
Although Job market for MBA graduates is always hungry for prospective students, but when it comes to choosing a candidate, students with International exposure will always have a better hand. Canada, thus, with much low restrictions for PR and no dearth of opportunity proves to be a viable option for Indian students who are looking to pursue MBA.
According to the htcampus report only 30% students return India after studying abroad. At the same time, Canadian laws do not put much restrictions when it comes to applying for a PR. Canada, thus, with much low restrictions for PR and no dearth of opportunity proves to be a viable option for Indian students who are looking to pursue MBA.