IIT Bombay’s Salary Growth Slows Even As Average Packages Plateau
Data shows a noticeable slowdown in salary growth trajectory of IIT. In 2023-24, the average salary package reached Rs 23.50 lakh, representing a 7.71% increase from the previous year.
Indian Institutes of Technology, Bombay, one of India's premier engineering institutions, is known for its high placement rates and lucrative salary packages. However, recent data reveals a significant change in the salary trends of its graduates.
Historically, IIT Bombay has seen increases in average salary packages offered to its graduates. For instance, from 2017 to 2018, the average salary package surged from Rs 16.25 lakh to Rs 17.49 lakh, marking a growth of 7.6%. This trend continued with substantial increases in the following years, driven by strong demand for IIT graduates in the job market.
However, recent data shows a noticeable slowdown in this growth trajectory. In the 2023-24 academic year, the average salary package reached Rs 23.50 lakh, representing a 7.71% increase from the previous year. This is a marked deceleration compared to the 26.74% growth observed from 2020-21 to 2021-22. The rise in the year 2022-23 was only 4.9%.
This slowdown suggests that while salaries remain high, their rate of increase is diminishing.
Distribution Of Salary Packages
However, not all hope is lost, show the salary distribution by package ranges. The table above illustrates a shift in how salary packages are distributed among graduates. In 2023-24, the number of students receiving salaries in the Rs 16.75 to Rs 20 lakh range increased to 230. This contrasts with the decrease in the mid-range salary bracket, where fewer students received packages between Rs 10 and Rs 12 lakh compared to previous years.
The data indicates a shift towards higher salary brackets, with more students securing salaries above Rs 16.75 lakh. However, the number of students receiving mid-range salaries has decreased, pointing to a redistribution of salary packages. This could be a result of increased competition or changes in job market dynamics, where fewer students are clustered in the mid-range brackets, and more are landing higher-paying roles.
Placement Statistics
The placement statistics reveal an increase in student participation in placement drives, but a decline in the placement rate. In 2023-24, 2,414 students participated, but only 1,475 were placed, resulting in a placement rate of 61.1%. This is a significant drop from previous years, when placement rates were high. In 2021-22, the rate was 89.5%.
In 2023-24, the placement rate dropped significantly from 82.0% in 2022-23. This decline suggests that despite more students participating, fewer are securing job offers. This could indicate increased competition or a mismatch between student skills and job market requirements.
Average Salary Trends
The average salary package data highlights a trend of rising salaries, but with diminishing growth rates. From 2017-18 to 2023-24, the average package has increased from Rs 16.25 lakh to Rs 23.50 lakh. However, the growth rate has slowed notably in recent years.
Despite this increase in average package, there were offers as low as Rs 4 lakh per annum. Of the 558 offers made by 123 companies, only 230 were for packages ranging between Rs 16.75 lakh and Rs 20 lakh.
This indicates that while salaries remain high, the pace of increase is moderating, reflecting a potential stabilisation in the job market or changing economic conditions.
