IIM-A PGPX highest salary offer falls to 6-year low at Rs 54.8 lakh

India’s prestigious business school Indian Institute of Management Ahmedabad (IIM-A), hailed as the finest in the world, is not immune to the persisting global economic slowdown as its highest salary offer for the IIM-A PGPX Class of 2024 has dropped to a six-year low of Rs 54.8 lakh per annum, The Times of India reported on Tuesday.

However, the median MEP has increased from Rs 33 lakh in 2023 to Rs 35 lakh this year, the second highest in the past six years. The highest-ever maximum earning potential (MEP) offered was Rs 1.08 crore in 2023. From 2018 to 2022, the average MEP was Rs 70.56 lakh.

The job market remains challenging for executive MBA graduates who choose the one-year programme at the college. This programme is available to individuals with at least four years of full-time work experience after graduation, according to the official website of IIM-A.

IIT placement packages hit by economic slowdown

In July, Business Standard reported that Indian Institute of Technology (IIT) placements have also been hit by the pandemic-induced economic slowdown, leading to a decline in salaries for engineering graduates.

Recent studies from Deloitte and TeamLease highlight a notable trend in compensation for the class of 2024 at the IITs. Deloitte's campus workforce trends study revealed a slight dip in salaries for graduates from top engineering institutes with annual pay ranging between Rs 15 lakh and Rs 16 lakh. Similarly, TeamLease reports that the median annual salary for graduates from older IITs decreased to Rs 15 lakh per annum from Rs 16 lakh, down from Rs 18 to Rs 20 lakh in 2023.

Besides the overall economic slowdown, factors such as shifts in industry focus towards manufacturing and electric vehicles, increased competition, and a growing preference for internships over full-time positions were cited as some of the reasons for the salary decline.

Moreover, economic challenges have also impacted appraisals this year, with the highest increment falling in the 10 to 11 per cent range, according to a Randstad India report published in April.