For decades, securing admission to the IIT or the IIM has symbolised academic excellence, social mobility, and career security in India. For millions of families, the IIT–IIM tag has been viewed not just as an education milestone but as a near-guarantee of long-term success.
But as India enters 2026, that long-held belief is being quietly and steadily – challenged.
With entry-level IT salaries stagnating, placement growth moderating even at elite campuses, and recruiters increasingly prioritising demonstrable capability, a new question is emerging: are students over-prioritising elite tags while underestimating the importance of future-ready courses and skills?
THE HIGH COST OF CHASING LIMITED SEATS
Each year, lakhs of aspirants devote multiple years to preparing for a handful of elite seats.
“Only a small fraction get in, but the rest often emerge socially underdeveloped, mentally fatigued, and narrowly conditioned for test performance,” notes Sribharat Mathukumilli, President, GITAM Deemed to be University.
“The IITs and IIMs are still excellent options, but they are no longer the only ones worth obsessing over,” he further adds.
Mathukumilli argues that several private universities and alternative programmes today offer comparable outcomes, often with greater interdisciplinary exposure and less psychologically taxing entry pathways.
BRAND STILL MATTERS, BUT IT’S NO LONGER ENOUGH
Few experts dismiss the value of institutional reputation outright. Instead, most argue that its role has changed.
“Ten years ago, joining an IIT was extraordinary. Today, with the expansion of IITs and IIMs, exclusivity has been reduced. The tag helps you enter the room, but skills decide whether you stay in the room,” says career consultant Jayaprakash Gandhi.
Gandhi points to an important reality: even students from top institutions are facing placement pressure.
“The market has changed. AI-assisted coding already accounts for 40–50 per cent of work in some companies. Routine software roles will shrink. What survives are higher-order skills, problem-solving, product thinking, and interdisciplinary innovation.”
“Institutional pedigree still acts as an entry filter, signalling academic rigour, problem-solving ability, and exposure to strong peer learning. However, hiring decisions today are far more nuanced. Recruiters increasingly evaluate candidates holistically, factoring in domain expertise, prior experience, leadership potential, and cultural fit,” said Prem Dewani, Placement Chairperson, Indian Institute of Management Lucknow.
“Specialised skills in areas like AI and data analytics are important, but they complement rather than replace institutional grounding. What ultimately creates confidence is the combination of strong foundational learning and demonstrable, contemporary skills,” he added.
COURSE CHOICE GAINS NEW IMPORTANCE IN THE AI ERA
As AI reshapes roles across sectors, what students study is increasingly shaping outcomes.
Dr Tanya Singh, Dean Academics, Noida International University, says prolonged entrance exam preparation often delays exposure to applied learning and real-world problem-solving.
“By 2026, adaptability and course relevance will outweigh brand recognition alone,” she explains.
She adds that excessive focus on elite tags discourages students from specialised degrees that may offer stronger long-term returns, especially as automation threatens traditional roles.
“Passing an entrance exam does not reflect real ability,” says Manish Mohta, Founder and Managing Director of Learningspiral.ai.
“In AI-driven fields, what matters is applied learning real projects, GitHub portfolios, and problem-solving competence,” he further emphasised.
‘SKILLS’ – FIRST IS NO LONGER A BUZZWORD
The move away from degree-only validation is increasingly data-backed.
The shift towards skills-first evaluation is not anecdotal, it is increasingly data-backed.
Nirajita Banerjee, LinkedIn Career Expert and Senior Managing Editor, LinkedIn News India, notes that 46 per cent of recruiters globally now rely on skills data to fill roles, signalling a decisive move away from degree-only validation.
“Our Skills on the Rise 2026 report for India highlights five critical skill stacks – AI and Automation, Data and Analytics, IT and Cybersecurity, Business and Growth, and People and Leadership,” Banerjee explains.
“What stands out is how AI and data literacy are spreading across non-technical roles as well,” she further added.
She emphasises that while a strong academic background may open the first door, career resilience depends on continuous learning and real-world application.
Professor Vikas Madhukar, Pro Vice Chancellor, Amity University Gurugram, says this shift reflects a deeper recalibration in how employability is being defined.
“What you study now matters as much as where you study,” he explains.
“Across the industry, we are seeing differentiated hiring tracks where specialised skills command significantly higher compensation than generic degrees. The differentiator is no longer institutional pedigree alone, but demonstrable capability.”
EVEN ELITE CAMPUSES ARE FEELING THE SHIFT
The pressure to demonstrate outcomes is no longer limited to non-elite institutions.
Saurabh Mangrulkar, Founder and CEO of EventBeep, notes a striking shift. “Earlier, Tier 2 and Tier 3 colleges approached us for placements. Now, even top IITs and IIMs are reaching out,” he says.
According to him, this change reflects evolving recruiter expectations rather than any decline in student quality. “Brand plus skills wins. Brand without skills doesn’t,” adds Mangrulkar.
For nearly three decades, Indian education followed a simple formula: Indian Institutes of Technology meant security, and Indian Institutes of Management meant success. In 2026, that equation is under strain.
India produces over 15 lakh engineers annually, yet fewer than half are industry-ready. Entry-level IT salaries remain clustered at Rs 3 to 4 lakh, while professionals with applied AI, cybersecurity, or product experience are reaching Rs 15–25 lakh within a few years.
Acceptance rates at IITs and IIMs stay below 1 per cent, even as aspirants spend up to five years in exam preparation, often delaying exposure to emerging sectors.
Meanwhile, hiring has moderated post-2022, premium campus packages are increasingly concentrated among the top 10–15 per cent, and recruiters now screen for real-world capability over pedigree.
“The IIT–IIM ecosystem still offers strong signalling and alumni capital,” says Ashish Dhawan, Senior Partner, AIMS International India.
But in an AI-driven economy, a brand may start a career. Capability is what sustains it.
A CAUTION AGAINST REPLACING EDUCATION WITH TRENDS
While acknowledging the rise of specialised pathways, Professor Debashis Chatterjee, Director of IIM Kozhikode, urges nuance.
“The real question is not brand versus skills, but whether institutions are equipping students with future-ready capabilities,” he says.
Chatterjee cautions against viewing AI skills in isolation.
“Technical proficiency alone does not create leaders. Organisations need judgment, ethics, communication, and strategic thinking. AI skills are tools wisdom in applying them creates value,” he explained.
He adds that reputed institutions signal exposure to peer learning, rigorous evaluation, and global perspectives, but stresses that a “brand without competence is hollow.”
THE RISK OF CONFUSING EMPLOYABILITY WITH CAREER CAPITAL
That distinction is echoed by Professor Keyoor Purani, Vice Chancellor, Prestige University, Indore.
“Specialised pathways may deliver short-term employability, but elite institutions historically deliver long-term career capital, leadership mobility, adaptability, and global credibility,” he says.
Purani cautions against assuming modular certifications can replace rigorous education.
Skills show what someone can do today. A serious degree reflects how someone thinks and grows tomorrow.
He also warns that aggressive ‘future-ready’ marketing often fills gaps left by inadequate mentoring. Education is not a quarterly earnings cycle. It is intergenerational capital formation.
“Getting into a top institution still has a powerful signalling effect. It builds rigour and gives you a lifelong network. But if someone wants to skip the IIT–IIM route, it only works when the specialisation is genuine, and they can demonstrate real outcomes,” says Ankur Agrawal, Founder of executive search firm LHR Group.
“The real question is whether the student has a plan beyond the brand,” he further added.
ARE STUDENTS MISSING EMERGING PATHWAYS?
Several experts believe societal pressure continues to narrow student choices.
Preetha Ajit, student counsellor, says that while awareness exists, prestige still dominates decision-making.
“Those who succeed outside elite tags do so through deep skill-building, not automatic advantage,” she adds.
Jayaprakash Gandhi adds that blindly chasing Computer Science and generic AI degrees could create saturation by 2028–29. He urges students to explore interdisciplinary domains such as climate tech, semiconductors, defence technology, quantum computing, and applied AI in medicine and economics.
A TAG NEUTRAL, SKILL-CENTRIC WAY FORWARD
From an employer’s perspective, Ajit Kumar Rai, Vice President HR, Stellar Innovations, says the danger lies in making pedigree the endpoint of career planning.
“Pedigree may help secure the first job. But long-term relevance depends on adaptability, continuous upskilling, and domain depth, especially in AI, data, and digital transformation,” he says.
The emerging consensus across experts is not about choosing IIT–IIM versus everything else, but about aligning aptitude, course relevance, and institutional ecosystem.
CAPABILITY OVER CREDENTIALS
The IIT–IIM tag still matters, but it no longer guarantees security. In an AI-augmented economy, careers will reward those who combine strong foundations with continuous learning, interdisciplinary thinking, and real-world application.
As Professor Debashis Chatterjee puts it, “The future will not reward tags alone, nor narrow technical skills alone. It will reward those who can think deeply, learn continuously, and lead responsibly.”
For students in 2026, the more meaningful question may no longer be which brand should I chase? But which learning path will keep me relevant a decade from now?
