A heated debate over the value of formal postgraduate education, particularly MBAs, has been reignited following controversial remarks by co-founder of online stock broking platform “Zerodha” Nikhil Kamath. In a recent statement, Kamath suggested that pursuing an MBA at age 25 makes someone "some kind of an idiot," emphasizing self-directed learning through platforms like YouTube and AI over traditional degrees. This sparked widespread discussion among various stakeholders who explored whether formal education remains the best investment for career success in today's job market.

Defending his statement, Kamath highlighted the erosion of conventional high-paying jobs that once justified MBAs. Roles in manufacturing, consulting firms like McKinsey and BCG, investment banking, and FMCG traditionally offered lucrative packages accessible via top business schools in India and abroad. However, emerging fields now outpace them in salary and accessibility. Data science, AI engineering, product management, and high-level content creation roles often pay more without requiring elite degrees. "There are jobs which beat these in salaries," Kamath explained, emphasizing skills over institutional pedigree.

A top executive of a reputed job portal stressed the distinction between education and employability, noting that while education builds skills, wisdom, structured thinking, and networks, companies ultimately hire for job performance. He said that companies are looking for people who can do the job, adding that evaluation methods have evolved. Formal degrees like MBAs still impart valuable knowledge, but they are no longer the primary filter. Instead, there's a growing emphasis on demonstrable skills, with education taking a backseat compared to a decade ago.

Another senior official of an IT firm highlighted various surveys revealing that nearly 80% of companies now prioritize skills over pedigree—whether from elite institutions or prior work experience. This "skills-first" approach isn't entirely new; he cited the late 1990s BPO boom, where firms recruited from hotel management colleges for customer service roles due to transferable soft skills like communication and customer focus. Today, rapid technological changes demand adaptability, with employers seeking candidates who can learn on the job, collaborate in distributed teams, and leverage AI tools for productivity. Sectors like IT, healthcare, BFSI, and manufacturing are seeing robust hiring, underpinned by AI proficiency.

Addressing alternatives to traditional degrees, experts in the education sector acknowledged the role of self-learning via online resources but defended formal education's unique benefits: interactions with professors, peers, and industry leaders. They also opined that colleges expose students to thought leaders and structured curricula—elements critical for mastering complex domains like finance, operations, or organizational behavior, where half-measures lead to costly mistakes in professional settings. However, for pure knowledge acquisition, platforms like YouTube suffice. Short courses and e-learning certifications are gaining traction, with progressive companies offering access or tuition refunds. "Learning is on the individual," a retired professor of engineering emphasized, urging continuous up skilling in a faster-evolving world than previous generations.

At the same time, degrees do serve as powerful signaling mechanisms in a crowded job market. Even as some companies claim to prioritize skills, data tells a different story: IIM and ISB graduates consistently command 30–50% higher starting salaries than peers with equivalent experience but no formal postgraduate credential. Top-tier firms—McKinsey, BCG, Goldman Sachs—still recruit predominantly from elite campuses, not LinkedIn profiles boasting online certifications. This isn’t mere pedigree worship; it’s risk mitigation. A degree verifies that a candidate has survived a rigorous selection process, mastered a standardized body of knowledge, and demonstrated discipline—qualities harder to assess through resumes or skill tests alone.

 On hiring hypotheticals, recruiters and HR experts were clear: skills trump pedigree. If choosing between a candidate with a top-tier MBA and one with targeted short courses demonstrating depth in relevant areas, he'd select based on job-fit skills. Compensation follows suit—many companies, including Indeed, publish pay ranges tied to roles and abilities, not degrees. "We reward people for the skills they bring," a senior HR professional said, noting that online tools now allow broader talent sourcing beyond campus placements, though top colleges still provide an entry "foot in the door."