It is a ‘dream come true’ for many students to study in the Indian Institute of Management and they work hard day and night to clear competitive exams like CAT, MAT in order to get admission in the top IIMs of the country. The prestigious IIM tag to get expensive from this year, yes you read it right! At least nine IIMs from the top ones like Ahmadabad, Calcutta, Indore and Bangalore to their newer counterparts at Rohtak, Ranchi, Trichy, Udaipur and
Amritsar, have either increased or are in the process of hiking fees by 5-17% for the 2018-20 batch, citing inflationary pressures and higher operational expenses, including faculty salaries and infrastructure costs.
Among IIMs increasing fee this year is IIM Bangalore, which will now charge ₹21 lakh for its two-year programme, up from ₹19.5 lakh last year. IIM Indore is going in for a ₹2 lakh fee increase to ₹16 lakh after two years, its director Rishikesha Krishnan told.
IIM Ahmedabad, which offers the most expensive programme among the IIMs, recently effected a hike for the third year running — to ₹22 lakh from ₹21lakh. IIM Calcutta too has raised fees, by₹1lakh to ₹21lakh for the upcoming session.
According to IIM authorities, fee hikes have become par for the course as they try to keep pace with inflation, faculty pay hikes and the cost of infrastructure.
IIM Rohtak director Dheeraj Sharma went on to say:“Increasing fees is now becoming a compulsion for older and mid-level IIMs such as us.”
He further went on to say: “After the first 10 years, IIMs are required to generate their own revenue and sustain themselves through their own corpus. Faculty salaries go up, cost of messes goes up, cost of hospitality, security, infrastructure, security goes up, thus necessitating a hike.”
Set up in the same year as Rohtak, IIM Ranchi has hiked fees from ₹12.5 lakh to ₹14 lakh, said its director Shailendra Singh.
At IIM Trichy, fees have gone up from ₹12 lakh to ₹14 lakh. “IIMs have consistently been focusing on providing better quality education, many have international accreditations. Factoring in that, plus increasing costs, fees are bound to go up,” said IIM Trichy director B Metri.
“Average salary packages for the students are also going up and the payback period is quite reasonable.”
Other new IIMs have also jumped on to the fee-hike bandwagon. This includes IIM Udaipur, which has increased its total fees by ₹80,000 to ₹14 lakh. The institute says the reason behind this revision is the central pay commission award and the goods and services tax (GST). Sources at IIM Amritsar said it is also contemplating raising its existing fees to ₹10.5 lakh from the current ₹9 lakh.
Narayanan Ramaswamy, partner and head, education and skill development, KPMG India stated: “The market is determining prices. Salaries have improved so much and there is a sizeable demand for good management talent.”