Global slowdown hits IITs, IIMs; fewer IIT-B students bag campus offers

Amid a global economic slowdown, placements at IITs and IIMs have seen a downturn as well.

At IIT-Bombay, while 25 per cent of the students did not get a job offer through campus placements, 10 students had to be content with offers of merely Rs 4 lakh in annual packages, says the placement report released by the institute for the 2023-24 academic year.

The positive side

The average annual package offered to students at IIT-Bombay saw a rise though. From Rs 21.8 lakh last year, it went up by 7.7 per cent, to Rs 23.5 lakh this year. There was also a 12 per cent rise in the number of companies hiring from IIT-Bombay.

More than 550 offers exceeded Rs 20 lakh per annum, coming from 123 companies. Of these offers, 22 exceeded Rs 1 crore and 78 were international. As many as 230 offers ranged from Rs 16.75 lakh to Rs 20 lakh.

The negatives

But the number of students who bagged jobs through campus placements dipped compared to last year. The placement rate was 75 per cent this year compared to 82 per cent last year. Some 15 per cent found jobs independently.

In all, 1,979 students had registered for placements. Of them, only 1,650 got job offers, and 1,475 accepted them. The lowest package, too, dipped to Rs 4 lakh per annum from Rs 6 lakh last year.

Major recruiters

The major recruiters were trading, banking and fintech companies, with the finance sector alone accounting for 113 offers from 33 firms. Consulting offers recorded a decline, with 29 firms recruiting for 117 positions.

Eleven companies in the education sector participated in the campus drive, offering 30 jobs. In all, 36 organisations in research and development offered 97 positions. Only 32 of the 118 active PhD students were successfully placed.

Companies in fields such as artificial intelligence, machine learning, product management, and data science also hired.

Of the 543 companies IIT-Bombay registered, 388 participated in the campus placements and 364 made offers.

Slump at IIMs

While industry experts warn that up to 50 per cent of the 15 lakh engineering graduates this year may be hit by this job crisis, it is not restricted to engineering alone. India’s top business schools, including the prestigious Indian Institutes of Management (IIMs), are also facing challenges with campus placements.

Besides the global economic slowdown, over-hiring after the COVID-19 pandemic is also reportedly responsible for the slump. According to an Economic Times report, all top IIMs, including Ahmedabad, Bangalore, Calcutta, Lucknow, Indore, and Kozhikode, are feeling the heat.

Fear of a dip in placements

Debashis Chatterjee, the director of IIM Kozhikode, is not worried about placing everyone, but admitted to ET that some students may not bag desired jobs. Ankur Sinha, chairperson of placements at IIM Ahmedabad, also reportedly fears a 10–15 per cent dip in the number of offers from leading multinational companies.

Some IIMs are expecting the final placement season to extend by at least a week. Some are also fearing a drop in the number of offers, salary packages, or both.