Key Highlights
- Top salaries at IIT Bombay and IIM-Ahmedabad have significantly decreased due to the global recession.
- The economic slowdown has resulted in 25% of IIT Bombay graduates and 5 IIM-A students remaining unplaced.
- Consulting and IT sectors are still strong, offering the most job opportunities despite overall declines in recruitment and salaries.
A corporate hiring scene at an elite business school campus, where students in formal attire interact with recruiters. The atmosphere shows a subdued mood, with recruiters discussing opportunities at smaller desks, and fewer students compared to usual. Banners for consulting, IT, and finance companies are visible, but without the buzz of a normal high-profile hiring day.
In the background, a university building of a prestigious institution like IIM-A or IIT is visible. The scene should reflect a sense of economic slowdown with subdued colors and expressions of cautious optimism among the graduates.
Table of Contents
Global Slowdown Impacts Elite Institutes
The ongoing global economic recession has triggered widespread hiring freezes, layoffs, and a sharp decline in salary packages across industries. Prestigious institutions, such as the Indian Institute of Management, Ahmedabad (IIM-A), and Indian Institutes of Technology (IITs), are experiencing the fallout, with job placements and salary offers taking a significant hit.
IIT Bombay: 25% of Graduates Fail to Secure Jobs, Minimum Salary Drops to ₹4 Lakh
The placement season at IIT Bombay has seen significant turbulence. Only 75% of the students who actively participated in the campus drive managed to secure jobs, a sharp drop from last year’s 82% placement rate. Out of the total 2,097 participants, 1,475 job offers were accepted, leaving 25% of graduates without a placement.
What’s more concerning is the drastic drop in the minimum salary offered, which fell to ₹4 lakh per annum this year from last year’s ₹6 lakh. This steep decline highlights the challenges faced by students, as companies scale back on recruitment amid the global economic downturn.
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Despite this, the average annual salary package at IIT Bombay increased by 7.7%, rising to ₹23.5 lakh from last year’s ₹21.8 lakh. This boost can largely be attributed to the higher salaries offered by international firms and select high-paying sectors, despite the overall decrease in the number of offers.
Core Engineering Leads with Highest Offers
The engineering and technology sector led the way in terms of recruitment, with 430 students placed across 106 companies. The finance sector also made significant strides, with 113 job offers coming from 33 financial service firms, including roles in trading, banking, and fintech. Additionally, the research and development sector, focusing on emerging fields like AI/ML, semiconductors, and automation, saw 36 organizations offering 97 positions.
A total of 78 international job offers were accepted, with 22 of these exceeding ₹1 crore per annum. This surge in international offers provided a silver lining, even as the domestic job market remained volatile.
IIM-Ahmedabad: Highest Salary Drops by ₹50 Lakh
The Indian Institute of Management, Ahmedabad (IIM-A), renowned for its Executive MBA (PGPX) program, has reported a significant decline in its highest salary package in 2024. The maximum earning potential (MEP) fell to ₹54.8 lakh per annum, marking a six-year low and a sharp drop from last year’s record-high MEP of ₹1.08 crore. This decline of nearly ₹50 lakh underscores the impact of the global economic slowdown on even the most prestigious business schools.
From 2018 to 2022, the average highest MEP was around ₹70.56 lakh. However, this year’s figures highlight the challenges recruiters face in committing to high-value offers. The median MEP, however, increased slightly from ₹33 lakh in 2023 to ₹35 lakh in 2024, providing some respite to students.
Out of 147 PGPX students, 126 participated in the placement process, with 121 accepting job offers. Despite these placements, five students remained unplaced, marking the second time this has occurred since the pandemic in 2020.
Top Recruiting Sectors: Consulting and IT Lead
In total, 105 recruiters participated in IIM-A’s placement drive, with consulting emerging as the top sector, offering 26 positions. IT consulting followed with 16 offers, while the banking and financial services sector contributed 13. Despite the challenging economic conditions, healthcare, pharmaceuticals, and IT solutions each made 12 offers, demonstrating their continued demand for top talent.
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However, the sharp drop in the highest salary offers reflects the broader economic challenges across sectors. Recruiters remain cautious, hesitant to commit to the high salaries seen in previous years.
Job Market Volatility Continues
As the recession deepens, the job market is expected to remain volatile. Companies across industries, including tech, finance, and healthcare, are scaling back or suspending new hiring altogether. Many firms, which traditionally recruited heavily from elite institutes, are either freezing hiring or reducing salary packages significantly.
The economic uncertainty is forcing graduates to explore alternative career paths, such as entrepreneurship or family business ventures, as conventional corporate roles become increasingly scarce.
A Challenging Road Ahead
The current hiring landscape paints a challenging picture for recent graduates, who face an uphill battle in securing desirable roles. With limited positions and a growing pool of applicants, competition has intensified, and companies remain hesitant to commit to high-paying offers.
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As economic conditions continue to fluctuate, institutions like IIMs and IITs will need to adapt, while graduates may face longer job searches or settle for reduced packages. The future of the job market remains uncertain, with the possibility of further instability if the recession persists.
