MBA education gets expensive; six IIMs hike fees substantially

The Indian Institutes of Management (IIMs) have decided to hike their fees for the academic year starting June 2009. The fee hike ranges from 9% to a whopping 60%. This hike in fee by IIMs is likely to snowball into lesser known institutions also raising their fee. The table shows the increase of fees by IIMs for new academic session starting June 2009.

IIMs have a concern that they are facing a shortage of faculty. And, in order to acquire best faculties they need to pay hefty remunerations. These institutes further make a point referring Sixth Pay Commission recommendations, and says that they have hiked fees to meet the additional financial burden. However, those who oppose the hike say that three-fold hike may affect access to economically weaker students.

When asked about the rationale behind the hike in the fees, Dr Sameer Barua, IIM A - Director, says, With passage of time the cost of teaching goes up. We have to account for increase in the cost of everything.

Justifying the decision of fee hike, Dr Pankaj Chandra, IIM B Director, says, The institute has decided to increase the fees as it is bearing an additional cost due to multiple factors including the increased salaries of staff following the Sixth Pay Commission. In addition, the institute is also paying increased pension to 200 pensioners.

Dr Devi Singh, IIM L Director, holds similar views on fees hike as other IIMs directors. He says, This hike is entirely need and cost-based. We needs the funds for a variety of reasons including expansion, wages increase as per the sixth pay commissions recommendations and providing more facilities to our students. Our costs are going to be at the same level as the hike implemented.

Other IIMs like IIM Calcutta, Indore and Kozhikode have given more or less same rationale against the fees hike.