IIT Mandi Director: Global Market and AI Disruptions Affect Placements, Students’ Salary Expectations a Growing Concern

Laxmidhar Behera of IIT Mandi addresses the decline in placement rates, student expectations, and the influence of global market conditions and AI on campus hiring.

The director of IIT Mandi, Laxmidhar Behera, has candidly acknowledged a significant drop in placements across Indian Institutes of Technology (IITs) this year due to global market uncertainties and the disruptive impact of Artificial Intelligence (AI). In an interview with, The Indian Express, Behera noted that the placement rate at IIT Mandi had dropped from 97% last year to 83% this year. This decline is a reflection of challenges faced by IITs nationwide, as corporations reduce hiring amid economic slowdowns and technological disruptions.

Behera’s openness is notable, as IITs have traditionally been reluctant to share negative data regarding campus placements. However, Behera shed light on the struggles, attributing some of the difficulty to AI’s influence in eliminating jobs and broader global uncertainties affecting hiring practices.

Apart from external market conditions, Behera also cited student expectations of “very high packages” as a growing concern. He mentioned that many students have turned down offers from Public Sector Units (PSUs), which provide long-term stability but offer lower initial salaries compared to lucrative positions in the private sector, particularly in software companies. This mismatch between expectations and reality has led to a “bad experience” for PSU recruiters, as Behera described it.

Behera, who took over as director in January 2022, highlighted that public sector jobs are undervalued by many students, despite their long-term benefits. He emphasized the importance of helping undergraduates recognize the advantages of PSU roles, especially in contrast to the high-stakes, fast-paced nature of the private sector.

Looking ahead, Behera shared plans to expand job opportunities for IIT Mandi graduates in Japanese companies. After visiting Japan last year, he discovered an eagerness among Japanese employers to hire IIT graduates. In response, the institute has employed two Japanese language teachers to prepare students for potential job placements in Japan.

In addition to addressing placement challenges, Behera touched on the lasting effects of the pandemic on students’ engagement with classroom learning. He observed a dramatic decline in attendance immediately after campuses reopened for full-time classes, which led him to implement an 80% attendance requirement. Although Behera expressed a dislike for imposing attendance rules, he stressed the importance of classroom participation for the academic development of students.

Under his leadership, IIT Mandi has also introduced a course on Indian Knowledge Systems, which includes topics like reincarnation and near-death experiences. This course stirred controversy, prompting the institute to make it optional. Defending the course content, Behera argued that it reflects core Indian value systems, particularly the concept of karma, and noted that similar ideas are studied in other parts of the world.

Behera’s leadership at IIT Mandi continues to navigate challenges while seeking new opportunities for students, especially in the face of evolving market dynamics and technological disruptions.