Narayana Murthy Funds IIM Ahmedabad’s First Inflation-Proof MBA Scholarship: Here’s How It Works

Ira Singh
Khabar Khabaron Ki,31 May’25

Infosys founder NR Narayana Murthy has launched a pioneering, fully-funded, inflation-adjusted scholarship at IIM Ahmedabad, marking a significant moment in Indian higher education philanthropy.

In a groundbreaking move, IIM Ahmedabad has introduced the Professor Jaswant G Krishnayya Merit Scholarship, a first-of-its-kind, inflation-proof MBA scholarship funded by Infosys co-founder NR Narayana Murthy. The scholarship will fully cover the total cost of the second year of IIMA’s flagship Post Graduate Programme (PGP) for the institute’s top-performing first-year student—making it entirely merit-based with no income criteria or background limitations.

The scholarship amount—currently estimated at up to Rs 36.20 lakh—covers tuition, hostel accommodation, mess charges, and academic materials, according to information.. Uniquely, the award is indexed to inflation, meaning the scholarship amount is adjusted annually to match the actual fees charged by the institute, ensuring 100% cost coverage regardless of future fee hikes.

Rs 12 Crore Commitment for 20 Years
The initiative is backed by a Rs 12 crore endowment from Murthy’s family office, Catamaran Ventures LLP, and is designed to run for 20 years. A formal memorandum of understanding (MoU) was signed with IIM Ahmedabad to institutionalize the scholarship, reinforcing the growing trend of alumni-led endowments.

“This scholarship reflects Murthy’s continued commitment to IIMA’s mission,” Pankaj Patel, chairperson of the IIMA Board of Governors reportedly stated. Bharat Bhasker, director of IIMA, hailed the scholarship as “a celebration of excellence, mentorship, and impact.”

Honouring a Mentor’s Legacy
Murthy named the scholarship after Professor Jaswant G Krishnayya, a faculty member who played a critical role in shaping his early career. “This is a testament to his pivotal role in shaping my life,” said Murthy, emphasizing the importance of recognizing mentors who inspire academic and professional growth.

A Costly But Prestigious Education
The initiative comes at a time when MBA education at top Indian B-schools is becoming increasingly expensive. A two-year MBA at IIMA currently costs between Rs 34.15 lakh (single accommodation) and Rs 36.20 lakh (married housing), making it one of the priciest in the country. In contrast, IIM Bangalore and Calcutta charge between Rs26 lakh and Rs 34 lakh, while newer IIMs have fees ranging from Rs 16.28 lakh to Rs 21 lakh.By removing financial barriers for the most outstanding student, the scholarship is expected to raise the bar on academic performance while promoting equity through excellence.

Institutional Support for Long-Term Philanthropy
The IIMA Endowment Fund, the institute’s philanthropic wing, played a key role in facilitating the scholarship. The fund aims to inspire more alumni and corporate donors to give back to the institution in a structured, sustainable manner.