In this article let’s take a look at reasons why IIM fees is so expensive and costly and is it worth joining IIM.
I will take the example of IIM Ahmedabad Which is the top college for MBA in India and the MBA course fees is 30 lakh rupees for a single student and 32 lakh rupees for a married student,
You must be wondering why it is so expensive to get MBA from this college, well that is what we will try to understand in this article.
So without further ado let’s get started.
Why IIM fees is so high, expensive, costly?
Amazing infrastructure and facilities, hiring and maintaining top faculty, not dependant upon the government for funding, limited seats in colleges are bunch of reasons why IIM colleges are very expensive and their fees are very high and costly.
Let’s take a look at all the reasons in detail now.
Infrastructure and facilities
Infrastructure and facilities are main reason for high cost of IIMS in india.
For example in IIM Ahmedabad, You can have various infrastructure and facilities like libraries labs cafeteria hostels sports complex gym Wi-Fi campus hospital auditorium AC classroom music room seminar room conference room convention center ATM Post office research center and many more.
Limited seats and competition
Another reason is of that there are limited seats as compared to the competition for IIM.
The fact is that there are over 5000 seats available in 20 different IIM colleges with on average of 250 seats in each IIM,
there is entrance exam called CAT to get admission into management programs in IIMS and other business schools in India,
This exam is conducted once every year and more than 2 lakh students attend this exam so you can clearly see the difference that there are only 5000 seats available, 385 seats in IIM Ahmedabad so there are more
number of people trying to get admission as compared to the number of seats available, This is also a reason for expensive admission fees because there is a clear mismatch between demand and supply.
Not related to stem courses
Another reason why IIM fees are so high is because, management and MBA programs are not related to stem (science, technology, engineering and mathematics) courses.
Most of the people who pursue MBA do it to learn new skills, get better as a person and learn marketing skills and also develop their personality so as compared
to the stem courses MBA focuses more on individual and personal development so it requires a different types of education and curriculum.
And all the MBA graduates also get internship to get practical experience of their knowledge so because of this reason fees are so high in IIM.
Faculty and staff
Another reason is hiring and maintaining good faculty and staff for the college.
If you check any university and college will be determined good or bad, top based upon the quality of faculty and professors in the college, how good are the professors in the college because of that IIM colleges have one of the best faculties and professors in that field.
For example in IIM Ahmedabad, most of the professors have PhD and master’s level degree in their specific field of education and they are also highly experienced people, The institute also focuses on publishing a lot of research papers to
maintain its reputation in the global stage and give rewards and grants for the faculty members who do research, and most of the professors who teach in this business school already have a lot of experience of teaching earlier.
INR 1,82,200 – INR 2,24,100, is the average pay scale of the professors in IIM Ahmedabad, so maintaining this quality staff members and faculty is also a reason for expensive education in IIM.
Less funding from government
Last but not least, IIM gets less or no funding from government at all even though it is a owned by central government and public autonomous college.
The government does not fund these colleges so they need to find a way to make some money for the investment they put and this is also a big reason for expensive education in IIMS.
These are all the things you need to know about why IIM is so expensive.
Are the fees of IIM worth it?
After checking out all the reasons why these colleges are so expensive to get into, in my opinion the fees are definitely worth it because if you just take a look at the numbers and return of investment then IIM Ahmedabad is definitely worth it for its fees.
It will cost you 30 lakh rupees for a single student and 32 lakh rupees for married person to study in this college, of course the fees is very expensive but it is definitely worth it
because the average salary of the graduate from this college is 26 LPA, median CTC is 25 LPA, and if you take a look at IIM Ahmedabad has 100% placement ratio and the other remaining IIM branches have approximately 90 to 100% placement ratio.
If we compare this with other business schools in our country, there are more than 6000 business schools in India including IIM,
Of the 150 lakh people aged between 20 and 34 who hold a graduate management education (GME) master’s degree, 15.6% (23.4 lakh) are Indians. India is among the top 10 nations when it comes to students pursuing MBA and equivalent courses, but
unfortunately 93% of the MBA graduates in India are unemployable, except IIM & and other top business schools in India most of the students who spend lakhs of rupees in business schools getting their MBA degree hardly get a job because
most of the business schools face problems like bad quality of education, bad infrastructure and facilities, average faculty and professors quality, syllabus not being updated with the changing market, world and lack of skill based education, etc.
Data suggests that more than 220 B-schools in top cities in India have shut down as a direct result of a 45% decrease in campus recruitment.
So, overall if you want to do MBA and other related degrees then you should definitely consider IIM or other top business schools instead of choosing tier 2 & tier 3 business schools in India because
IIMs have quality of education and professors so in my opinion, IIMs are definitely worth it for its fees because you can earn that money you spend in fees in less than 2 years after getting a job from IIM because average package is 25 LPA in IIM.
With that said let’s end the article.
Conclusion
These are all the things you need to know about IIM and why it is so expensive
Do comment down what are your thoughts about IIM college in the comments section below,
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