The Indian Institutes of Managements (IIMs) are about to hike their fees by 5 – 17% for the 2018-20 batch. While that percentage might seem small to some, the fee hike impact on the pocket is set to be about 80,000 – 2 lakh rupees extra for the degree.
This step has been taken, citing inflation and higher operational expenses like faculty salaries and infrastructure costs.
Fees at IIMs range from 9 lakh to 22 lakh rupees for the two-year programme.
IIM Bangalore has raised its fees by 8%, meaning that you now have to pay 21 lakh rupees instead of the previous 19.5 lakh rupees.
IIM Indore is shooting up straight to an additional 14% and increasing its fees by 2 lakh rupees. So, the total fee now stands at 6 lakh rupees after two years of keeping it at the same rate.
IIM Ahmedabad is the most expensive of the bunch and this is nothing new for IIM Ahmedabad which has been on a yearly price hike in fees.
“Increasing fees is now becoming a compulsion for older and mid-level IIMs such as us,” said IIM Rohtak Director,Dheeraj Sharma.
IIM Trichy and IIM Amritsar come in with the biggest price hike in percentage among all the IIMs this year, shooting straight up to a 17% hike. But even with the hike, the fees remain lower than the higher end IIMs. IIM Trichy costs 14 lakh rupees per month and IIM Amristar stands at just 10.5 lakh rupees.
IIM Ranchi got a 15% hike and leveled its fees with that of IIM Trichy’s.
“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,” according to Dheeraj Sharma, Director of IIM Rohtak.
IIM Rohtak got a 7% fee hike this year bringing its fees to be 12.3 lakh rupees for the programme.
While these are some of the more well-known IIMs, even smaller IIMs like IIM Udaipur have increased their fees by 80,000 rupees, bringing the total to about 14 lakh rupees. Other IIMs are expected to join the bandwagon soon.