Why is the fee structure so high in iim ahmedabad?

IIM Ahmedabad charges high fees to maintain its cutting-edge facilities, top-notch infrastructure, high-end research facilities, it offers. They need to charge high to meet these costs. Also, IIMs are autonomous and they don’t receive much funding from the government. The majority of their funding comes from the program fees. 

However, for students in need of financial help, IIM Ahmedabad has many scholarships and students loans on offer. 

One of my friends graduated from IIM Ahmedabad. According to him, there are valid reasons as to why IIM Ahmedabad’s fee structure is so high. He narrows it down to two aspects, Maintenance, and Inflation.

Maintenance

• Unlike IITs, IIMs are autonomous institutions. This means that the management has to take care of their expenses and they will not get much funding from the government.
• The institute needs to maintain the infrastructure and they need to conduct the CAT exam every year.
• They gather all this money from students who join the institution.

Inflation

• Way back in 2003, when my friend was pursuing MBA at IIM Ahmedabad, all the tier 1 Business schools were charging around 2.5-3 lacs.
• Now, this amount has increased around 9 times. The fees for PGDM at IIM Ahmedabad are ? 23 lakh.

IIM Ahmedabad is considered the most prestigious institution for management studies. Hence, due to the reputation, it holds among students and professionals, the fees tend to rise.