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I dropped a year after twelfth class to prepare for engineering entrances. Does dropping a year reduce one's chance of getting into IIMs?

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Accomplished IIT and Career Coach

Not at all. You need to score well in your university, you need to make sure you are able to communicate well why you need to do an MBA after engineering and you should be able to demonstrate solid communication skills ( ofcourse you will need to score well in CAT)
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