How big is the package difference between new IIMs and old IIMs?
The salary gap between old IIMs (the BLACKI cluster - Ahmedabad, Bangalore, Calcutta, Lucknow, Kozhikode, and Indore) and newer IIMs is substantial, and it compounds across a career in ways that the headline averages alone don't fully capture.
The headline package gap
Looking at 2024-batch reported figures, the old IIMs cluster in the Rs 28 to 35 LPA average range, while newer IIMs typically report averages around Rs 17 LPA. But averages overstate the typical outcome.
Median fixed salaries tell a more honest story.
| Institution | Avg Package (2024 batch) | Approx Fees | Median Fixed (est.) |
|---|---|---|---|
| IIM Ahmedabad | ~Rs 35.2 LPA | Rs 27.5L | ~Rs 30 LPA |
| IIM Bangalore | ~Rs 34.9 LPA | Rs 26.2L | ~Rs 30 LPA |
| IIM Calcutta | ~Rs 34.2 LPA | Rs 27.0L | ~Rs 28-30 LPA |
| IIM Lucknow | ~Rs 32 LPA | Rs 21L | ~Rs 25-28 LPA |
| IIM Kozhikode | ~Rs 30 LPA | Rs 22.5L | ~Rs 22-25 LPA |
| IIM Indore | ~Rs 26 LPA | Rs 21L | ~Rs 20-22 LPA |
| Newer IIMs | ~Rs 17 LPA | Rs 14-16L | ~Rs 12-13 LPA |
What drives the gap
Three mechanisms explain why the difference is as large as it is. First, BLACKI graduates get direct campus placements at McKinsey, Goldman Sachs, and comparable firms.
New IIM graduates rarely access those firms on-campus; students often report entering such organizations 1 to 2 years post-MBA through lateral hiring, which means a lower entry grade and a lower starting salary. Second, companies explicitly price compensation by college tier as a proxy for peer quality and selectivity.
lateral distinction isn't just about money at joining - it affects which projects, which managers, and which promotion tracks you get access to early.
Students from new IIMs who join the same company as BLACKI graduates commonly report entering at a lower job grade, with a pay difference of roughly 40 to 50% for the same role title. These aren't universal fixed rules, but the directional pattern is consistent across sectors.
How the gap plays out over time
The joining-salary difference widens in absolute terms over the first five years before starting to compress for high performers. A BLACKI graduate joining at approximately Rs 28 to 30 LPA has a materially different base from which increments, bonuses, and role upgrades compound.
By contrast, a new IIM graduate joining at approximately Rs 12 to 13 LPA is working from a lower base even if the percentage increment each year is similar or higher.
To be clear, these career-trajectory numbers are illustrative, not predictive. Individual performance, sector choice, and luck matter enormously.
The gap does narrow over a 10-plus-year horizon for strong performers from newer IIMs - but the first-job anchor matters more than most students account for when evaluating options.
What this means in practice
The trade-off is not just about the degree - it's about which firms show up on campus and at what level. If you're weighing a newer IIM now against the possibility of retaking CAT for a BLACKI seat, the fee difference is smaller than it looks (Rs 14-16L vs.
Rs 21-27L), but the placement access difference is large. You can compare colleges or run an eligibility check to get a clearer picture of where you realistically sit before making that call.