New vs Old IIMs: Which Offers Better Career Growth in 2025?

Introduction

The Indian Institutes of Management (IIMs) symbolize prestige in the business education landscape. For many CAT aspirants, securing an IIM seat is the ultimate dream. Yet, with 21 IIMs now in existence, a tough choice emerges — should you aim solely for the legacy campuses like Ahmedabad, Bangalore, and Calcutta, or consider the rapidly rising new IIMs such as Udaipur, Trichy, or Ranchi?

Over the past decade, the “New IIMs vs Old IIMs” debate has grown sharper. The original six institutes — Ahmedabad, Bangalore, Calcutta, Lucknow, Indore, and Kozhikode — continue to dominate rankings and placements. However, new IIMs (established post-2008) have swiftly gained ground with modern campuses, young faculty, and strong corporate linkages.

The IIM Landscape: Old vs New

The IIM ecosystem has expanded remarkably over time. Here’s a quick snapshot:

The Old IIMs (popularly called IIM ABCs + the next three) were designed to set the standard for global management education. Their branding, faculty, and alumni strength built an enduring legacy recognized across industries.

The New IIMs, on the other hand, emerged through the government’s expansion initiative to democratize access to quality management education. What once seemed “second-tier” are now recognized players, with some (like IIM Udaipur and IIM Trichy) consistently featuring among India’s top 10–12 B-schools.

Academic Excellence and Faculty Profile

Academic rigor was traditionally synonymous with the old IIMs, known for their world-class faculty, exhaustive syllabi, and case-driven pedagogy. Faculty members here often have decades of industry and research experience.

However, the new IIMs are steadily matching pace. Most have faculty trained at top global universities, often bringing more flexible, research-oriented perspectives. A standout example is IIM Udaipur, which is AACSB accredited and ranks among India’s top research schools by UT Dallas Index — a rare feat for an institute established in 2011.

While the Old IIMs benefit from legacy and diversity of electives, New IIMs gain from fresh teaching approaches, technology-driven learning, and smaller batch sizes that allow personalized mentorship.

Placement Insights: Who Offers Better Opportunities?

Placements remain the first yardstick of comparison for every aspirant. Historically, the Old IIMs boast unparalleled placement statistics. However, in recent years, New IIMs have displayed remarkable upward trends, bridging the gap faster than expected.

The placement success of new IIMs can be credited to:

• Mentorship from older IIMs (under the “IIM–IIM mentorship” model).
• Alumni growth in major firms, paving the way for new recruiter tie-ups.
• Strong corporate engagement through live projects, SIPs, and case competitions.

Notably, even if the CTC gap seems large initially, role quality and career progression for top students at new IIMs remain significant. Over five years, many graduates from institutes like IIM Raipur or IIM Udaipur hold positions at MNCs alongside alumni from older IIMs.

Alumni Network and Industry Connect

An IIM’s alumni network is its greatest intangible asset. Old IIM alumni dominate top global corporations, policy think tanks, and entrepreneurial ventures. Their networks often create chain opportunities for current students in high-value domains like consulting, PE/VC, and strategy roles.

However, alumni from New IIMs are adding impressive milestones fast. In little over a decade, they are holding leadership roles at firms like Goldman Sachs, KPMG, and PwC. Institutes like IIM Ranchi and IIM Udaipur have established dedicated mentorship cells where alumni guide current students on placements and international careers, effectively shortening the experience gap.

So while the network size still heavily favors old IIMs, network accessibility and alumni engagement are stronger among new-generation campuses.

Infrastructure, Global Exposure & Campus Culture

Walk into an IIM Bangalore classroom and you can feel the legacy. These institutions offer sprawling campuses equipped with extensive libraries, global research centers, and residential facilities that foster academic intensity and cultural vibrancy.

That said, new IIM campuses are built to modern, world-class standards. IIM Trichy operates from one of India’s most advanced management campuses. IIM Udaipur regularly collaborates with international universities across Europe and the US for exchange programs.

Culturally, the newer IIMs are more experimental — encouraging entrepreneurship, sustainable business projects, and industry-academia collaborations. Clubs and committees are student-led, fostering leadership from the first semester.

In short: Old IIMs = tradition and stability. New IIMs = innovation and dynamism.

ROI and Long-Term Career Growth

The Return on Investment (ROI) argument often favors new IIMs, and here’s why.

An MBA from an old IIM can cost between ₹25–30 lakhs, while the top new IIMs usually charge around ₹17–22 lakhs. Meanwhile, their average placements fall within a respectable 15–20 LPA range. That puts ROI for new IIMs close to or even higher than legacy campuses when measured over 5 years.

Example:

• IIM Ahmedabad graduate earns ₹30 LPA on average on a ₹30 lakh investment — ROI ≈ 1:1.
• IIM Raipur graduate earns ₹18 LPA on a ₹18 lakh investment — ROI ≈ 1:1 too, with faster breakeven.

However, long-term career growth depends more on performance and adaptability than on the brand alone. Many professionals from new IIMs reach mid-managerial levels in 5–7 years, equal to peers from older ones.

For aspirants eyeing corporate longevity and domain-specific leadership, new IIMs can be a great growth platform — especially in emerging sectors such as analytics, technology management, and sustainable business models.

When Should You Choose a New IIM Over an Old One?

Your decision should hinge less on perception and more on fitment. Opt for a new IIM if:

• You’re getting a preferred specialization (like IIM Trichy for finance or IIM Udaipur for analytics).
• You value modern pedagogy, smaller batches, and close faculty engagement.
• You seek strong ROI and career acceleration within 3–5 years.
• You’re entrepreneurial or want early exposure through live corporate projects.

Conversely, choose an old IIM if you’re prioritizing legacy brand recognition, global networks, and top-tier consulting or finance roles.

In essence, the right IIM is the one that aligns best with your goals and learning style — not necessarily the oldest one.

How Career Plan B Supports Every Step

• Personalized Counseling: In-depth one-on-one counseling to align specialization, college choices, and career goals.
• Timeline & Reminder Service: Never miss a deadline—receive timely reminders and updates about institute-wise counseling calendars.
• Document Checklist & Verification: Guidance to prepare all required documentation, reducing stress on D-day.
• Preference Analysis: Analysis of seat trends, cut-offs, and college quality to build a winning choice list.
• Mock Counseling & Strategy: Practice sessions to simulate real counseling—boosting your confidence, reducing errors.
• Support for Appeals/Technical Issues: Help in resolving portal issues, appeals, or queries with admission authorities.

Have any doubts?

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FAQs

Q1. Are placements at new IIMs improving?
Yes. Institutes like IIM Udaipur, Trichy, and Raipur have seen double-digit placement growth annually, with top recruiters such as Deloitte, Amazon, and Cipla offering lucrative roles.

Q2. Do new IIMs have good faculty and learning quality?
Absolutely. Most new IIMs have faculty trained at top global universities and emphasize research-driven learning and case-based pedagogy.

Q3. Which IIMs offer the best ROI for working professionals?
IIM Trichy, Raipur, and Kashipur are strong choices, offering lower fees and high average packages suited for career transitions.

Q4. How important are rankings compared to specialization?
Both matter. Rankings reflect brand strength, but specialization fit (like analytics, operations, or entrepreneurship focus) can influence long-term success more effectively.

Q5. Do recruiters differentiate between old and new IIMs?
Initially, yes — due to brand recall. But in hiring decisions today, recruiter perception is driven more by candidate capability, internship performance, and role fit.

Conclusion

The “Old vs New IIMs” comparison is no longer about prestige versus mediocrity — it’s about legacy versus evolution. The old IIMs still define excellence through heritage, research, and high-value networks. Yet, new IIMs are emerging as formidable institutions that blend modern learning with solid corporate outcomes.

Ultimately, your career growth depends on your clarity and effort, not just your campus name. Evaluate what aligns with your personal goals, specialization interest, and return expectations.

And if you need expert guidance to make this critical choice, Career Plan B is here to help you navigate the IIM landscape — from profile evaluation to final decision-making — empowering you to invest in the B-school that truly fits your career plan.