New Delhi, Sept. 8 -- Traditionally known for their flagship two-year Post Graduate Programme (PGP) in management, the Indian Institutes of Management (IIMs) are now venturing into undergraduate (UG) education. While IIMs have been offering the five-year Integrated Programme in Management (IPM) since 2011, they had never launched standalone UG courses before 2024. Between 2024 and 2025, IIM Sirmaur, IIM Sambalpur, and IIM Kozhikode have launched full-time, residential four-year undergraduate programmes in fields such as management, public policy, and emerging technologies, and IIM Bangalore introduced a three-year online BBA in Digital Business and Entrepreneurship (BBA-DBE). Similarly, IIM Udaipur has announced plans to launch an on-campus BBA programme from next year. The fees of UG courses range from Rs.4.5 lakh for IIM Bangalore's online BBA to nearly Rs.28 lakh for Kozhikode's Bachelor in Management Studies (BMS). IIM officials said the launch of UG courses reflects the National Education Policy (NEP) 2020's push for flexible learning and is guided by academic goals rather than finances. However, government funding has fallen sharply-dropping by nearly 75.5% from Rs.1,030 crore in 2017-18 to Rs.251.89 crore in 2025-26-after the IIM Act, 2017 made the institutes more autonomous. Except IIM Kozhikode, all IIMs offering undergraduate courses have taken Higher Education Financing Agency (HEFA) loans of Rs.250-Rs.400 crore, where the institutes repay the principal while the government bears the interest. Students view the high fees as an investment that gives them access to the IIM ecosystem but experts caution that the move could dilute the IIMs' specialised focus. In September 2024, IIM Sirmaur became the first IIM to launch an undergraduate programme - the BMS. Explaining the move, IIM Sirmaur director Dr. Prafulla Agnihotri said, "Most UG management programmes in existing universities are too theoretical. We thought management education must enhance decision-making and offer practical application of theory to its students and launched the BMS programme last year." He admitted the transition was initially tough for faculty, who had never taught undergraduates before, but added, "After a year, our faculty have adjusted to the challenges of the BMS." IIM Sirmaur's BMS programme drew 2,373 applications for just 120 seats this year, with the four-year course priced at Rs.22.73 lakh. IIM Sambalpur director Prof. Mahadeo Jaiswal said with the ongoing NEP 2020 implementation, there has been a big push for increasing quality management education at the undergraduate level. "India is seeing increasing demand for undergraduate courses that not only deliver intellectual knowledge but also create managerial and leadership capabilities from the very beginning," he said. IIM Kozhikode director Prof. Debashis Chatterjee said the response to the new BMS course has been "extremely encouraging" with over 8,000 applications for 120 seats. He described it as "not a conventional commerce degree" but a research-driven, interdisciplinary programme. "Management education can no longer be confined to the postgraduate level," he added. Vedasamhita Makireddi, a BMS student at IIM Kozhikode, said the course is helping her build a foundation to pursue a career in luxury brand management. "I see the Rs.28 lakh fee as value, not just cost," she said. Through IIM Act, 2017, the central government granted the IIMs full academic and financial autonomy, empowering their boards to take key decisions on courses, fees, and governance without government interference. Government funding for IIMs has dropped by 75.5% since 2017-18, falling from Rs.1,030 crore in 2017-18 to just Rs.212.12 crore in 2024-25, with a slight recovery to Rs.251.89 crore budgeted for 2025-26. After peaking at Rs.653.92 crore in 2022-23, allocations have steadily declined, pushing IIMs toward greater financial self-reliance. Though IIM officials said that the primary driver behind the launch of UG courses is academic vision, not financial compulsion, experts question the timing and term the move as "a debt-driven expansion model." "The BMS course is mission-driven to nurture management leaders, not funding-driven, and positions IIM Kozhikode as a pioneer in creating new models of undergraduate management education, which is the need of the hour," said Prof Chatterjee....