STOP opening NEW IIMs | Massive Loan and No Placements
The speaker warns prospective MBA students against joining new or 'baby' IIMs opened in the last 15 years, citing poor placements, unjustifiable ROI, weak alumni networks, and the misleading value of the IIM brand tag. She argues that established non-IIM colleges like XLRI and SP Jain often offer better outcomes than newer IIMs like IIM Amritsar or IIM Bodhgaya.
Summary
The video opens with the announcement of IIM Guwahati in February 2026 as the second IIM in the North Eastern region. While acknowledging this as positive news, the speaker cautions students against joining any of the 15 IIMs opened in the last 15 years solely based on the IIM brand name.
The first and most critical concern raised is placements. The speaker contrasts the 'Holy Trinity' of IIM Ahmedabad, Bangalore, and Calcutta — which achieved 100% placements with an average package of ₹35 lakh even amid global uncertainty and AI-driven layoffs — against newer IIMs. Using RTI-obtained data from IIM Amritsar, she reveals that 78 out of 318 students did not get placed, with those students reportedly 'opting out.' She also mentions IIM Trichy and Kashipur allegedly forcing students to opt out to improve placement statistics. IIM Bodhgaya's minimum package is cited as just ₹4 lakh, and only 10 students from IIM Amritsar's batch of 300+ received packages above ₹20 lakh.
The second point concerns the IIM tag itself. The speaker explains that top consulting firms like McKinsey, BCG, and Bain, as well as legacy FMCG companies like HUL and ITC, recruit almost exclusively from top-tier IIMs. Graduates from newer IIMs, even if hired, tend to be placed in back-end roles rather than client-facing positions. She also notes that IIMs hold virtually no recognition abroad, unlike IITs, making international career prospects extremely limited for most IIM graduates.
The third point is Return on Investment (ROI). IIM Amritsar charges ₹25 lakh in fees despite its poor placement record. When accounting for living expenses in metro cities — where a 3BHK in Mumbai costs at least ₹1 lakh per month — and the fact that reported packages often include bonuses and variable components rather than fixed salary, the financial math does not add up for newer IIMs.
The fourth and final point is the lack of alumni networks at newer IIMs. The speaker argues that the true value of elite institutions lies in their alumni networks — senior professionals in positions of power who can assist with job referrals and career advancement. Baby IIMs simply lack this, and while such networks may develop over 30-40 years, students today bear the risk of that long-term gamble.
The speaker also recommends non-IIM institutions like XLRI Jamshedpur, SP Jain, SIBM Pune, and NMIMS as strong alternatives with average packages above ₹25 lakh. She mentions that these require separate entrance exams (XAT, SNAP, NMAT) beyond CAT, and promotes a test preparation service called Mock Zone for these exams. The video closes with a policy suggestion to the government: keep fees at newer IIMs low until they build strong placement records and alumni networks, rather than using the IIM brand as a profit-making vehicle.
Key Insights
- RTI data from IIM Amritsar reveals that 78 out of 318 students did not receive placements, with the institution reporting them as having 'opted out' — a framing the speaker suggests obscures the true placement failure rate.
- The speaker argues that top consulting firms like BCG hire IIM Ahmedabad graduates for direct client-facing roles, while hires from newer IIMs like IIM Jammu are typically assigned back-end work such as data analysis and presentation preparation — reflecting a significant hierarchy even within IIM recruits.
- IIM Amritsar charges ₹25 lakh in fees and requires a CAT score above 95 percentile, yet only 10 out of 300+ students received packages above ₹20 lakh — making the ROI, in the speaker's view, deeply unjustifiable especially when metro living costs are factored in.
- The speaker states that IIMs are virtually unknown internationally, contrasting them with IITs which have global recognition — arguing that newer IIMs in particular offer almost no pathway to overseas career opportunities.
- The speaker proposes that the government should cap fees at newly established IIMs for 10-15 years and only increase them incrementally based on demonstrated placement performance, arguing that IIMs were created for national development, not as profit-generating institutions.
Topics
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