52% more pay: Why MBA graduates are earning more than engineers in the job market

The future of work is moving beyond the old engineering-versus-MBA divide. As AI takes over more technical tasks, the premium is shifting towards people who can connect technology with business, make sound decisions and lead through change. The real advantage may belong to those who can bridge both worlds.For decades, engineering was India’s closest thing to a guaranteed ticket to the middle class. But today, MBA graduates are commanding higher campus placement salaries than engineering graduates, reflecting a broader shift in what companies seek.As technology reshapes industries, employers are looking beyond technical expertise to professionals who can understand technology, identify business opportunities and turn them into measurable results.The shift is increasingly visible in campus placement pay packages across the country. MBA graduates received campus placement packages that were 52 percent higher than those of engineering graduates in the 2026 placement cycle, according to Deloitte India’s Campus Workforce Trends 2026 report.The premium, up from 47 percent for the previous graduating class, is projected to reach 59 percent for the class of 2027. For a country that long saw engineering as a reliable path to prosperity, the shift signals a changing job market, one that increasingly rewards professionals who can combine technical expertise with business acumen and turn technology into tangible results.INDIA'S ENGINEERING DREAM MEETS A NEW JOB MARKETEngineering is hardly disappearing from India’s economic landscape. Technology remains central to almost every industry, and demand for technical expertise is strong. But the nature of technology jobs is changing as AI automates coding, accelerates analysis and takes over repetitive tasks. As machines become better at execution, businesses are placing greater value on professionals who can identify the right problems, make strategic decisions and turn technology into business value.Is this the right product? Is there a market for it? What will customers pay? Should the company invest in this technology? These questions sit at the intersection of technology and management. Deloitte’s survey of 250 organisations points to a growing emphasis on management and leadership capabilities alongside technical expertise.The shift is visible across finance, marketing, operations and manufacturing as AI and analytics reshape businesses. Increasingly, companies need professionals who can speak both languages: technology and business.The emerging advantage, therefore, may lie with those who can bridge the two, understanding technology while knowing how to turn it into business results.THE MBA PREMIUM IS REALLY A PREMIUM ON MOBILITYDr Umesh Kothari, Assistant Dean, PG Programmes and Assistant Professor at SP Jain School of Global Management, sees the changing salary equation as a reflection of how the nature of work itself is evolving.“As businesses adopt AI, automation and data-led decision-making, professionals are increasingly expected to understand how technology affects customers, operations, markets and profitability,” Kothari says.His larger point is that an MBA should be viewed as a long-term investment in career mobility rather than simply a route to a higher starting salary.Management education can open pathways across consulting, product management, finance, strategy and entrepreneurship, but its value increasingly depends on analytical ability, business understanding, leadership and adaptability.The MBA is becoming less about the letters after a name and more about the decisions a person can make. As technology reshapes work, business and cross-functional skills are becoming increasingly valuable.THE PEOPLE WHO CAN BRIDGE TWO WORLDSSome of today’s most interesting jobs sit beyond the old engineering-versus-management divide. Product management, consulting, digital transformation, AI strategy and analytics increasingly require professionals to understand both technology and business.A product manager must understand both what engineers can build and what customers want. A digital transformation professional must balance technology with adoption and business impact. An AI strategist must know not just what AI can do, but where it makes commercial sense.Dr Vidhya Srinivas, Director, Corporate & Career Services, sees this as a fundamental change in how companies evaluate talent. She argues that the strongest professionals will increasingly be those who can bridge technology, business and leadership rather than remain confined to one qualification.“The real shift, therefore, is from qualification-led hiring to capability-led hiring,” Srinivas says. The distinction could prove crucial as companies increasingly look for professionals who can take technical complexity and convert it into a business decision.AI IS CHANGING WHAT COMPANIES PAY FORThere is an irony in the rise of the MBA salary premium: it comes as AI takes on increasingly sophisticated technical and analytical tasks.Deloitte’s findings show AI rapidly changing recruitment: 86 percent of organisations say it is reshaping hiring, while 35 percent report new roles or skill requirements, up from 21 percent in FY25. Around 80 percent have dedicated campus-hiring teams, with pre-placement offers also rising.As AI takes over coding, analysis and repetitive work, human judgement and business understanding are becoming more valuable. Candidates with AI and data skills can command 20–25 percent premiums, while analytical and problem-solving skills attract 10–15 percent premiums. The advantage increasingly lies in combining technology with business judgement.Rohit Sindhwani of MDI Gurgaon says business schools must adapt by emphasising critical thinking, ethics, practical business challenges and lifelong learning.“As machines handle tasks, the people who shine will be those who ask the right questions, grasp the context, and lead others through change,” Sindhwani says. That may be one of the defining challenges for management education in the AI era: how to teach judgement when technology is increasingly capable of supplying answers.RS 27.4 LAKH AT THE TOP, BUT THERE IS A CATCHThere is, however, an important reality check behind the headline salary figures: an MBA is not automatically a high-paying degree.Deloitte’s data shows that students from India’s top 10 B-schools earned an average of Rs 27.4 lakh in FY26, compared with Rs 8.4 lakh at tier-3 B-schools. For BTech graduates, the figures were Rs 18.7 lakh and Rs 5.75 lakh respectively. The Deloitte survey shows the MBA salary premium comes with a campus divide (AI generated image). The gap shows how strongly the institution influences outcomes. The survey covers 505 campuses based on NIRF rankings, including leading IIMs, IIT management schools and other top institutions.For students, the message is clear: an MBA’s return depends on the institution, cost, recruiters and career opportunities. The 52 percent premium is an aggregate finding, not a guarantee.ENGINEERS ARE NOT LOSING, THE ENGINEER IS EVOLVINGThe easiest, and perhaps most misleading, conclusion is that engineering is becoming obsolete. It isn’t.India still needs engineers, developers, data specialists and semiconductor professionals. What is changing is the career path available to technical talent.Engineers who build business skills can move into product, strategy, consulting and leadership, while MBA graduates with AI, data and digital expertise can gain an edge. The Deloitte findings reinforce this convergence: employers are increasingly valuing behavioural skills, adaptability and the ability to learn.Technical knowledge may open the door, but business understanding, judgement and adaptability could determine how far professionals go.THE NEW CAREER FORMULAPratham Barot, CEO and Co-Founder of Zell Education, sees India's professional education landscape at an important inflection point. As AI and digital tools transform finance, accounting and business functions, career readiness is expanding beyond academic qualifications to include domain expertise, practical exposure, digital fluency and continuous learning.His point extends the MBA-versus-engineering debate into a larger question about employability. A degree can open a door, but it cannot guarantee what happens after you walk through it.The winning combination increasingly appears to be technical or analytical ability, business understanding, communication, leadership and adaptability. Employers are looking for professionals who can learn across boundaries and stay relevant as work changes.One-year attrition among hires from top-10 and tier-1 institutes has also fallen from 23 percent to 19 percent, suggesting companies are focusing more on retaining talent and its long-term value.For students, practical exposure matters too. Internships, projects, problem-solving and digital skills can be just as important as the qualification itself.SO, WHAT SHOULD STUDENTS CHOOSE?There is no universal answer. Students who enjoy engineering or technology should not abandon it for an MBA salary premium, just as those drawn to strategy, finance or leadership need not choose engineering for its traditional reputation.The bigger question is what comes after the degree. Can an engineer understand business, or an MBA understand technology? As AI reshapes work, the advantage increasingly belongs to those who can combine technical skills, business understanding and adaptability.THE SALARY GAP IS ONLY THE BEGINNINGThe projected 59 percent MBA salary premium for the class of 2027 may be the headline, but the bigger story is what employers are choosing to reward. The workplace increasingly values professionals who can connect technology with strategy, data with decisions and innovation with business results.This does not mean engineering is losing relevance or that an MBA guarantees a high salary. It points to a broader definition of employability, where technical expertise must be paired with business understanding, judgement, communication and adaptability.The Deloitte data also shows a more selective market. AI and data skills can command a 20–25 percent premium, while analytical and problem-solving skills attract 10–15 percent premiums. Meanwhile, 86 percent of organisations say AI or Agentic AI is changing recruitment.For students, the choice is no longer simply between two degrees. It is about building skills that can survive a changing workplace. An engineer who understands business and the MBA who understands technology may both have an edge.The real race is no longer between degrees. It is between those who keep learning and those who stop.- EndsPublished By: Apoorva AnandPublished On: Aug 31, 2026 08:55 IST