Can I apply for jobs elsewhere after completing MBBS from AFMC?

Definitely you can. Completing MBBS from AFMC doesn't mean, you are bound to work with the forces. You can practice privately also. MBBS from AFMC or any other recognised institutions have same value.

MBBS is a degree which done from AFMC has equal value as done from any other MCI approved institution in India. After completing the necessary serving period required, you can apply for all jobs that other MBBS passouts can apply. Moreover, you have a better respect than peers for serving in field w