GUWAHATI, Aug. 12, 2025: The Union Cabinet on Monday approved the establishment of a new Indian Institute of Management (IIM) in Guwahati, making it the second IIM in the Northeast after IIM Shillong and the 22nd in the country.
The institute, to be set up in Palasbari on the outskirts of Guwahati, will receive over ₹500 crore in central funding. Officials confirmed that the initiative will address a long-standing gap in access to top-tier management education in the region, while boosting Guwahati’s status as a leading higher education hub.
Chief Minister Himanta Biswa Sarma thanked Prime Minister Narendra Modi and the Union Cabinet, calling the approval a “visionary step” that “rightly positions Guwahati as a hub of quality higher education.”
A Strategic Academic Expansion
Guwahati already hosts several premier institutions, including IIT Guwahati, AIIMS Changsari, and the National Law University and Judicial Academy. The addition of an IIM will further strengthen the city’s academic and research ecosystem.
Initially, the new IIM will admit around 120 students, with plans to scale up to over 1,000 seats within five years. Classes are expected to begin in a temporary facility by 2027, while construction of the permanent campus proceeds.
Catalyst for Regional Growth
Experts believe the institute will have far-reaching economic benefits. “We expect a wave of economic activity once the campus construction begins,” said Dr. Namrata Choudhury, an economist at Gauhati University. The project is projected to create over 3,000 direct and indirect jobs, benefiting construction, hospitality, transport, and local businesses.
The IIM is also expected to attract skilled faculty from across the country, foster entrepreneurship, and support local industries such as tea, handloom, eco-tourism, and sustainable agriculture through dedicated incubation and mentorship programmes.
Focus on Inclusive and Modern Education
The curriculum will emphasize emerging sectors, including technology and digital transformation, sustainability, public policy, rural innovation, and international business - particularly with Southeast Asia. Special scholarships for students from tribal and economically weaker backgrounds will ensure broader access and representation.
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Education activist Raktim Bordoloi welcomed the move, saying, “This institution will help us grow our own leaders. Students from remote villages will now have a shot at a world-class business education without leaving the Northeast.”
National and Regional Significance
Officials said the decision aligns with the National Education Policy (NEP) 2020 and the Centre’s Act East Policy, aiming to integrate the Northeast more closely with national and global economic networks. The bill for the new IIM will be tabled in Parliament during the current session.
Once operational, the institute is expected to retain local talent, reduce regional disparities in higher education access, and build a pool of management professionals equipped to address the Northeast’s unique challenges.
