At least 10 of India’s top B-Schools have either hiked their fees or are proposing an increase that could go anywhere between six to 19 per cent above their existing fees for the 2016-17 academic calendar. Apparently, the stiff hike in fees could be due to high inflation rates and continuously rising operational costs.
A number of institutes, including the likes of International Management Institute (IMI), XLRI, MDI-Gurgaon, XIM-Bhubaneswar, IIM-Ranchi, and SP Jain Institute of Management & Research have already waved the green flag at the proposed hike. Meanwhile, a number of other top B-Schools including IIM-Kozhikode, IIM-Calcutta, IIM-Udaipur and WeSchool are assessing the proposal and likely to announce their decision sometime during the next few weeks.
Based on the existing course fee in the institute, MBA from a top B School could be anywhere between INR 50,000/ to INR 200,000/.
Interestingly, these institutes are introducing the seemingly necessary hike at a time when the popularity of MBA programs are diminishing somewhat. However, almost of the institutes that either already hiked or are currently pondering over the idea, unanimously agree that the move is inevitable in the awake of rising inflation and higher administrative expenses. This is particularly true for institutes like IIM-Calcutta that have not hiked their course fee in four years.
While the move could actually affect some students, the availability of student loans is likely to reduce its impact significantly.
“Generally, students don’t mind paying more for a well-established B-school. But where relatively new institutes are involved, fees may have a role.” Adds Sumit Mitra, Head (group HR and corporate services), Godrej Industries: “Students know that when it comes to the top management institutes, they will get their money’s worth even if there is a fee hike. Also, with education loans easily available, a fee hike is hardly a deterrent,” said Ajay Antony, VP, Triumphant Institute of Management Education.
Meanwhile, Narayanan Ramaswamy, Partner and Head (education practice), KPMG in India, expressed his view on the matter by saying: “Ultimately, it’s about value for money. If leading institutes feel that given their costs and the value they offer there is still room to increase the fee, they can go ahead and do it,” Economic Times report.
“Every cost of running an institute has gone up, from amenities, facilities, even cost of electricity and water. The fee hike is understandable,” he added.