TAMING THE IIMs

The autonomy debate has returned to the Indian Institutes of Management (IIMs) after almost six years. In the past decade, the premier business schools frequently made headlines due to their struggle for autonomy, often overshadowing their international rankings and academic excellence.

- Jumana Shah

In December 2017, the IIM Autonomy Bill granted these institutions complete freedom in their functioning while the government continued to fund 16 of the 20 IIMs. This was hailed as a positive move by the IIM community. However, the proposed changes to the autonomy granted in 2017, through the Indian Institutes of Management (Amendment) Bill, 2023 passed by Parliament recently, have sparked controversy, with differing perspectives on the matter.

According to the new bill, the President will assume the role of Visitor on the board of governors of each IIM, with powers to nominate and remove the chairperson, oversee the appointment as well as removal of the director, and audit the functioning of the institution if necessary. While critics argue these amendments formalise political interference, another section claims that similar government powers existed before 2017, and the institutes still flourished. Besides, they also flag misuse of autonomy and an absence of accountability and commitment to performance—the slide on global rankings is cited as a case in point.

Key positions such as the chairperson and particularly the director hold immense power in an IIM. The chairperson leads the institute’s board, which makes crucial decisions at the macro level. Two representatives from the state as well as the central governments, often IAS officers, occupy seats on these boards.