hi!

A short ideal answer would be - NO. Some experience before pursuing an MBA is always preferred. However, I don’t really think its compulsory. There are people who have been trading in the stock market since engineering, have developed an inclination towards finance and want to pursue finance as a career. Their knowledge on finance is probably far more sound than some one with 2 years of Manufacturing / IT work experience who wants to pursue Finance.

Awareness about any market does not necessarily come from work experience.However, if you are looking only from the perspective of the job placements and haven't decided on any particular stream, there is not much of a difference between those with and those without work experience. In fact, for people with 4+ years of work experience, some times it acts as a serious disadvantage. 

Since a large majority of students come from IT industry, they eventually land into IT companies as a manager against their choices and dreams. 
Marketing firms prefer freshers or those having less than 2 years of work experience. Similar is the case for finance companies who look for young blood who can slog for long hours in the office. 
Having said that, people having work experience have a lot of clarityregarding the kind of work they want to do and choose their subjects accordingly. Freshers have fat salary packages as their top priority while students with experience lay a lot of emphasis on the job profile, the work environment, and the reputation of the company. 

If you are looking from the perspective of learning, it definitely is worth doing it after 2-3 years of work experience. In fact, in foreign B-schools it is mandatory to have a work experience of 3+ years in the industry you wish to go further. 
You might get too late if you go for an executive program. And in India, only IIM A and ISB have a reputed executive MBA program. I haven't heard much about other colleges.