Indian Institute of Management (IIM)

The Indian Institutes of Management (IIMs) are a group of premier public, autonomous management education and research institutions in India. Established by the Government of India with the aim of providing world-class management education and fostering leadership, they are recognised as institutions of national importance. The IIMs are renowned for their highly competitive admission process, rigorous academic curriculum, strong research orientation, and high global standing in management education.

Background and Establishment

The origin of the IIMs can be traced to the recommendations of the Planning Commission of India in the 1950s. Recognising the need for professional management education to support industrial and economic development, the Government of India sought assistance from international institutions and experts. The first IIM, IIM Calcutta, was established in 1961 in collaboration with the Alfred P. Sloan School of Management at the Massachusetts Institute of Technology and the Ford Foundation. Shortly afterwards, IIM Ahmedabad was founded in 1961 in collaboration with the Harvard Business School, with Professor Vikram Sarabhai playing a key role.
Over the years, the number of IIMs has increased significantly, with successive governments establishing new institutes across different regions of the country to enhance access to management education. As of 2025, there are 21 IIMs functioning across India.

Legal Status and Governance

The IIMs were originally registered as societies under the Societies Registration Act, 1860, which provided them with autonomy in academic and administrative matters. In 2017, the Indian Institutes of Management Act was passed, declaring the IIMs as institutions of national importance. The Act empowered them to grant degrees instead of diplomas, which they had been conferring until then.
Each IIM is governed by a Board of Governors, which is responsible for policy-making and overseeing academic and administrative operations. The overall coordination among the IIMs is facilitated by the Ministry of Education (formerly Ministry of Human Resource Development), though the institutes enjoy significant academic and financial autonomy.

Admission Process

Admission to the flagship Post Graduate Programme in Management (PGP), equivalent to an MBA, is through the Common Admission Test (CAT), a national-level entrance examination conducted annually by one of the IIMs on a rotational basis. The CAT is known for its high level of difficulty and competitiveness, with over two lakh candidates appearing each year for a few thousand seats.
The selection process typically involves three stages:

• CAT Examination – tests quantitative ability, data interpretation, logical reasoning, and verbal ability.
• Written Ability Test (WAT) or essay writing.
• Personal Interview (PI), where academic records, work experience, and personal traits are assessed.

For doctoral programmes, candidates must qualify through CAT, GRE, GMAT, GATE, or UGC-JRF examinations, followed by interviews.

Academic Programmes

The IIMs collectively offer a wide range of academic programmes, tailored to the needs of aspiring managers, researchers, and working professionals.

• Post Graduate Programmes (PGP/MBA): The flagship two-year residential programme in management, offered by all IIMs.
• Executive Post Graduate Programmes (EPGP/PGPX): One-year intensive programmes designed for working professionals with significant managerial experience.
• Fellow Programme in Management (FPM): Doctoral-level research programmes comparable to PhD degrees in management.
• Specialised Programmes: Some IIMs offer programmes in fields such as agriculture business management (IIM Ahmedabad), human resource management (IIM Ranchi), and public policy (IIM Bangalore).
• Executive Education: Short-term and customised management development programmes for working professionals.

Types and Classification of IIMs

IIMs are often categorised based on their year of establishment and reputation.

• First Generation IIMs: IIM Calcutta (1961), IIM Ahmedabad (1961), IIM Bangalore (1973), IIM Lucknow (1984).
• Second Generation IIMs: IIM Kozhikode (1996), IIM Indore (1996).
• Third Generation IIMs: IIM Shillong (2008), IIM Rohtak (2009), IIM Ranchi (2009), IIM Raipur (2010), IIM Tiruchirappalli (2011), IIM Kashipur (2011), IIM Udaipur (2011).
• Fourth Generation IIMs: IIM Nagpur (2015), IIM Visakhapatnam (2015), IIM Bodh Gaya (2015), IIM Sirmaur (2015), IIM Sambalpur (2015), IIM Amritsar (2015), IIM Jammu (2016).

Research and International Collaboration

The IIMs have placed significant emphasis on research, contributing to the fields of management, economics, business policy, operations, and entrepreneurship. Faculty members regularly publish in reputed international journals and undertake consultancy projects for governments and corporations.
Collaborations with foreign universities and business schools have strengthened the global presence of IIMs. Exchange programmes allow students to study abroad, while international faculty and joint research initiatives enhance academic quality.

Placement and Industry Interface

One of the defining features of the IIMs is their strong linkage with industry. Annual campus placements attract leading national and international companies offering high-paying roles in consulting, finance, marketing, operations, and general management. Top recruiters include global firms such as McKinsey & Company, Boston Consulting Group, Goldman Sachs, Amazon, and Microsoft.
IIM graduates are highly sought after not only in India but also worldwide, contributing to corporate leadership, entrepreneurship, academia, and public policy.

Criticism and Challenges

Despite their prestige, IIMs have faced criticism on several grounds. Some challenges include:

• Equity of Access: Highly competitive entrance processes often favour students from privileged backgrounds with better access to resources and coaching.
• Faculty Shortage: Many newer IIMs struggle with inadequate faculty strength.
• Regional Disparities: While new IIMs have been established to address geographical imbalance, they are yet to match the older IIMs in terms of reputation and infrastructure.
• Global Rankings: Though reputed in India, IIMs face challenges in consistently featuring in the top tiers of global business school rankings.

Significance

The IIMs hold a pivotal role in shaping managerial talent in India and abroad. They have not only produced corporate leaders but also contributed to public policy, entrepreneurship, and academic research. Alumni from the IIMs have occupied influential positions in multinational corporations, government agencies, and start-ups.
The IIM network symbolises excellence in management education and continues to adapt to global trends in business and technology. With increasing emphasis on innovation, digital transformation, and sustainability, the IIMs are positioned to remain central to India’s growth story and to its global competitiveness in the management domain.