Fees in top B-schools to rise by Rs. 1 lakh to 3.8 lakh

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Yash Malani, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur


The high pay packages have made getting an MBA degree very attractive, but the relentless increase in the fees of B-Schools is putting the RoI in jeopardy. Most of India’s top business schools have either increased or are in the process of increasing tution fees by Rs. 1 lakh to 3.8 lakh for management aspirants this year, citing inflationary pressures and increasing operational expenses. That fee increases ranges from 7% to 38% in these B-Schools.

Indian Institute of Management Lucknow has implemented the highest hike of 38% for 2016-2018 batch. They increased their fees upto Rs. 14 lakh from Rs. 10.2 lakh. Second highest hike is implemented by IIM Kozhikode which has implemented 23% hike in tution fees where fees are raised from Rs. 13 lakh to Rs. 16 lakh.

Considered as one of the new IIMs, IIM Trichy and IIM Ranchi has also implemented Rs. 2 lakh increase in their fees. While the former has raised upto Rs. 12 lakh, IIM Ranchi has raised from Rs. 10.5 lakh to Rs. 12.5 lakh implementing 20% and 19% increases respectively. As per the statement by their director, fee hike is necessary to keep pace with inflation, pay hikes and cost of infrastructure. Cost of books or buying case studies has also increased everywhere which is one of the reasons behind hike in fees.

India’s most expensive management programme is offered by IIM Ahmedabad, which increased its fees by Rs. 1 lakh to set at Rs 19.5 lakh. Next is IIM Calcutta, which has raised fees from Rs. 16.3 lakh to Rs. 19 lakh implementing 16.5% increase.

Because of restrictions, private B-schools such as Management Development Institute (MDI) or XLRI, Jamshedpur can not increase their fees beyond a point and they also have a restriction on the number of students in a batch. But because of inflation, MDI has also increased tuition fee is up 7% at Rs 17.15 lakh from Rs. 15.96 lakh, whereas XLRI is likely to raise fees by up to 7%. XLRI currently charges Rs 17.95 lakh for its two-year course.

With the current round of fee increases, the cost of management education at the top institutes has gone up four-five times in the past nine years. Fees at IIM Ahmedabad and IIM Calcutta, which were Rs 4 lakh nine years ago, have risen almost five-fold to Rs 19.5 lakh and Rs 19 lakh, respectively.

An ETIG analysis shows tuition fees at major B-schools have risen faster than inflation. Between 2007 and 2016, inflation as measured by the Consumer Price Index (CPI) for industrial workers (IW) rose at a compounded annual growth rate (CAGR) of 8.6%. During the period, fees at the top management institutes in the country rose by 12-19%.




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