As per a 2016 ASSOCHAM Report, 93% of MBA's are unemployable. Thats right. Out of the 100 MBAs Indian B-schools churn out, only 7 are worthy of being employed. That’s even more shocking when you consider that half of the B-schools assure you of 100% placements. This problem is not faced by CAs to the same extent. They will eventually get employed. A CA is anyday better than MBA. However, there are exceptions.
The only way an MBA can beat a CA is if he/she is from the top 15 universities of India - IIM ABCLKIS, XLRI, SP Jain, FMS, JBIMS, MDI, etc.
Well, the basic differences between a CA and an MBA are -
1. Getting in - Any Tom, Dick and Harry can become an MBA. However, it is really difficult to get into a top B-school. CAT is a scathing exam which really tests your aptitude. 2,00,000 candidates appear and each B-school has 400 seats (200 seats if you are from the General category) only. On the other hand, anybody can enter the CA course. However, only a chosen few exit.
2. Focus on Communication - CA may be one of the toughest courses, however, it lacks focus on communication. You see various CAs unable to converse in basic English. A 14-day GMCS is just not enough. MBA is different. With the focus on presentations and English being an integral part of the CAT, its more or less assured that the candidate knows the primary language in which business takes place in India.
3. Classroom Interaction - Many CAs get their graduation done through correspondence or through colleges with hardly any attendance norms. MBA changes that. Classroom interaction is stressed on and people learn how to work in teams.
4. Time taken– CA takes 4 years to do whereas an MBA will be done in 2 years. However, the time factor does not play a very integral role as CA can be done along with graduation whereas MBA has to be done post graduation only.
5. Return - An MBA from the top 10 institutes pays much higher. Average package for a CA is Rs. 6–7.5 lac. Average package for top 10 MBA college pass-outs is Rs. 15–18 lacs. However, CA is much cheaper than MBA. An MBA from the top 15 institutes will cost Rs. 20 lac on an average whereas CA can be completed in Rs. 3 lac (Inclusive of tuition fee, books, exam fees, etc.)
6. A CA knows how to do the work. An MBA knows how to get the work done. This is the fundamental difference.
In this age of cut-throat competition, rather than asking CA v/s MBA, the best option would be to do CA AND MBA. This not only assures you of a decent job (especially in finance) but also tries to plug the shortcomings of both the degrees. With IIMs focusing on increasing diversity, what better time than now?