IIM Fees vs Placements: Soaring cost, stagnant salaries, students in debt
Every year, thousands of MBA aspirants across India dream of cracking the Common Admission Test (CAT) and securing a seat in the prestigious Indian Institutes of Management (IIM). The promise is straightforward: pay the price, earn the degree, and reclaim it all and more in your first job. However, recent data submitted to the National Institutional Ranking Framework (NIRF) raises questions about this promise.
Rising Costs and Falling Salaries
An analysis of official placement data from 17 IIMs reveals a troubling trend. While the cost of an MBA from IIM has surged, real incomes for graduates have diminished. On average, IIM graduates are earning less than they did two years ago while paying 22% more in fees when adjusted for inflation.
Key Statistics
- Average IIM MBA Fees: Increased by over Rs 2 lakh in two years.
- Median IIM Salary: Decreased by Rs 6,827 over the same period.
- Inflation Rate: Approximately 9% over two years.
Growth in IIM Operations
Across the 17 IIMs, the scale of operations has expanded significantly, with increases in intake, admissions, and graduate counts by around 14%. Despite this growth, the financial burden on students has escalated.
Comparison of IIM Data
| IIMs | 2022-23 | 2023-24 | 2024-25 | Difference | % Difference |
|---|---|---|---|---|---|
| Intake | 6,129 | 6,575 | 7,065 | +936 | +15.27% |
| Admission | 6,172 | 6,513 | 7,083 | +911 | +14.76% |
| Graduates | 6,038 | 6,353 | 6,918 | +880 | +14.57% |
| Placed | 5,983 | 6,298 | 6,834 | +851 | +14.22% |
| Avg Median Salary (in Rs) | 21,36,191 | 20,69,588 | 21,29,364 | -6,827 | -0.32% |
| Avg Tuition Fees | 17,90,600 | 18,65,882 | 20,04,941 | +2,14,341 | +11.97% |
Impact on Newer IIMs
The data indicates significant drops in median salaries at several newer IIMs, particularly IIM Amritsar and IIM Sambhalpur, where aggressive fee hikes have not translated into better salaries.
New IIMs: Fees vs Average Packages
| Institute Name | Median Salary 2022-23 | Median Salary 2023-24 | Median Salary 2024-25 | Salary Diff (2022-23) vs (2024-25) | Salary % Diff (2022-23) vs (2024-25) | MBA Fees 2022–24 | MBA Fees 2023–25 | MBA Fees 2024–26 | Fees Diff (2022–24) vs (2024–26) |
|---|---|---|---|---|---|---|---|---|---|
| IIM Amritsar | 15,94,000 | 15,60,000 | 12,29,000 | -3,65,000 | -22.90% | 15,20,000 | 16,50,000 | 18,10,000 | 19.08% |
| IIM Sambalpur | 16,00,000 | 13,15,000 | 15,02,692 | -97,308 | -6.08% | 13,08,000 | 18,01,000 | 21,01,000 | 60.63% |
Challenges for Established IIMs
Even the most established IIMs, such as IIM Ahmedabad and IIM Calcutta, are not immune to this trend. While their median salaries are still increasing, the growth is minimal and does not keep pace with rising fees and inflation.
First Generation IIMs: Fees vs Salaries
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