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For students at India’s top management institutes, there’s yet another reminder of the tightness of the job market.
The average salary – what a middle-class candidate gets – has stagnated. In some cases, for the batch of 2024 at the Indian Institutes of Management (IIMs), it has even fallen. However, these colleges have hiked fees for upcoming batches, citing rising costs and the need to overhaul infrastructure.
“The stagnant average salary reflects the volatility in the market and the global wars that are still going on,” said Debashis Chatterjee, director of IIM-Kozhikode, referring to economic uncertainty. “It will be difficult to predict salaries for the upcoming batch, but if the average salary remains the same for a few years, it is a cause for concern.”
For IIM graduates, who find jobs in multinational corporations and India’s top domestic firms, the unchanged pay raises expectations. This comes after the pandemic-triggered talent war that fueled salary hikes led to an unprecedented upheaval known as the Great Resignation.
Concerns about economic slowdown
Concerns about a cooling global economy only make the situation worse.
The average salary at IIM-Kozhikode was Rs 27 lakh for the 2022-24 batch, unchanged from the previous 2021-2023 group, but higher than Rs 27 lakh for the 2022-24 batch Rs 26.5 lakh for students of session 2020-22.
Chatterjee said the institute, which last worked on its curriculum in 2020, is reviewing it again to improve engagement with companies so that placements are not affected, “whatever the market may be”.
Campus placement reports of some of the older IIMs also show a drop in average compensation. IIM-Lucknow’s 2024 batch got 27 Lakh Vs 30 Lakh (2023) and 29 Lakhs(2022) in previous years.
There was a rise in the average salaries offered to graduates right after the pandemic, when companies were looking for top talent. Those graduating in 2023 took advantage of this. But campus placements experienced a downturn after firms became complacent and the global job market became uncertain due to wars, venture capital and private equity funds tightened their purse strings and the IT sector cooled down.
IIM-Indore’s average salary reflects this well: pay at the institute has fallen Rs 24.5 lakh by 2024 The 2023 offerings will be up to Rs 27.2 lakh, but are comparable with the offerings made in 2022 ( Rs 24.09 Lakh)
IIM-Bangalore also showed a similar trend, where the average compensation was Rs 1.5 lakh. 32.5 lakhs for the 2024 batch, while Rs 32.5 lakhs for the 2024 batch 33 Lakh (2023) and 31.2 Lakh (2022) in the last two years.
marginal, if any
“B-schools will have to look beyond the usual investment banks and look at recruiters from manufacturing, banking, chemicals, electronics and EV sectors,” said Narayanan Ramaswamy, partner and head of the education and skills development practice for consulting firm KPMG, India. “The 2023-2025 batch is expected to see a marginal increase in average salaries, while those graduating in the 2024-2026 batch will see a jump.”
IIM-Ahmedabad, where average salary remained stagnant 31.58 lakh and IIM-Calcutta, which invested Rs 31.59 lakh in 2023 and 2022 respectively, has not updated its placement report for the 2024 batch. IIM-Calcutta, which is yet to release the latest numbers, saw a rise in payouts from Rs 1.59 lakh to Rs 2.59 lakh. Rs 31 lakh for batch 2022 to 2025 Rs 33.67 lakh in 2023
key indicator
Average salary becomes an important indicator as people with crore plus salary are few and far between. Most of the IIM students take education loan for this program.
New students pursuing the two-year MBA course at IIM Ahmedabad will have to pay the fees in 2024. 26.5 Lakh Vs 25 Lakh and more In the last two years, it was Rs 24.61 lakh respectively.
IIM Bangalore has increased the fees for its two-year MBA programme. This year (2024-2026) Rs 26 lakh. 24.5 lakh for the previous batch.
IIM-Bangalore in an emailed response said, “The fee structure is reviewed internally by the Dean-Programmes and the Chief Financial Officer, taking into account the cost of the programme, impact of inflation, etc. and is increased, if required.”
The biggest increase among the older IIMs was at Indore, which raised its fees after three years. “There was no change in fees during the COVID-19 pandemic, which necessitated adjustments to keep pace with rising operational costs,” said Himanshu Rai, director of the institute. Students enrolling for the 2022-24, 2023-25 and 2024-26 batches were to pay a fee of $1,000. 20 Lakh Vs Rs 16 lakh was paid by the group for 2021-23.
IIM-Kozhikode said the factors behind this increase are “increased cost of living conditions, increase in the number of faculty members, maintenance of hostels and infrastructure/facility support to students”.
Consultancies, FMCG, banking and e-commerce sector companies, apart from conglomerates and public sector units recruit management graduates, but students with work experience are preferred.
For most students who fund their MBA through education loans, the payout may not increase in the coming years, according to Brajesh Singh, president of management consultant Arthur D. Little India. Consultants typically Old IIM students are paid up to Rs 30 lakh but the pay varies as per the profile.
Singh said average salaries are expected to remain stable, and recruiters will look to IIMs for graduates with a combination of skills in management and future technologies such as AI.
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