Earlier this year, Amit Soni left his government job to pursue an MBA at the Indian Institute of Management (IIM) Ahmedabad — widely acknowledged to be one of the country’s premier management schools. In an Instagram video, he has now opened up about the very real cost of quitting a government job to go back to school.
“ ₹74 Lakhs. That’s what it cost me to quit a government job — the same day I got into IIM Ahmedabad,” claimed Soni, who used to be an SSB Assistant Commandant on the Indo-Nepal Border.
The cost breakdown
According to the IIM-A student, the ₹74 lakh figure he mentioned included the IIM tuition fee, his resignation bond, and the "opportunity cost" of giving up a year's salary and perks.
Soni said the fee for the one-year Post Graduate Programme for Executives (PGPX) at IIM Ahmedabad came to ₹37.10 lakh. He estimated spending another ₹4.5 lakh on the programme's international immersion component and around ₹2.5 lakh on living expenses during the year.
He added that resigning from his government job required him to pay a bond amount of ₹9.80 lakh. These made up the direct, assured costs of joining IIM-A.
{{/usCountry}}He added that resigning from his government job required him to pay a bond amount of ₹9.80 lakh. These made up the direct, assured costs of joining IIM-A.
{{/usCountry}}The biggest indirect cost, according to him, was the ₹20 lakh he calculated as the opportunity cost of foregoing a year's salary and employment benefits.
Despite the hefty price tag, Soni said he had "no second thoughts" about his decision and did not have a backup plan. "Just conviction," he wrote in the post. “Is it worth it? Absolutely yes.”
Quitting a government job
A government job in India is synonymous with stability and job security. These jobs are highly coveted as they offer a steady salary, strong job security and other benefits unavailable to private sector employees.
Despite this, Soni chose to join IIM by leaving his post as an Assistant Commandant.
“Because some investments aren’t measured in lakhs — they’re measured in who you become on the other side. Uniform to boardroom. Service to strategy. This is just chapter two,” he said.
In an earlier video, he had elaborated further on this decision, saying that he wanted to choose “growth” over “comfort”.
(Also read: IIM Ahmedabad student reflects on the ‘hidden costs’ of 1st year: 'It came in the form of casualties')