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A very common confusion for most management aspirants is whether to do an MBA or PGDM. All over, graduates are searching for the best pathway to reach their goal and it’s the time for the institutions to lure them towards management courses. And as the entrance season approaches the dilemma for the management aspirants continues – its MBA or PGDM? Here are a few points of distinction between the two to give you a better clarity on the issue:

Professional ApproachAcademic Tone
Value of the PGDM depends on the ranking of the B-schoolMBA from a lower ranking school is ranked lesser than a PGDM from a top ranking B-school
Offered by individual colleges and IIMsOffered by ‘Universities’ or ‘Colleges that are affiliated to Universities’ or Central Body directly under the Indian Government
Higher fessLesser fees
More flexibility in terms of syllabusLess flexibility in terms of syllabus
ResidentialIdeally non Residential


Examples of PGDM/PGP Institutes in India are- IIMs, XLRI, SP Jain, NMIMS (Bangalore/Hyderabad) etc.
Examples of MBA colleges in India are- IIFT, JBIMS , FMS ,NMIMS(Mumbai)SIBM (Pune), IITs etc.

  • Why few offer MBA and rest offer PGDM?

    As per the law in India, only a University can offer degrees such as the MBA, BBA, B.Tech or B.E. Any educational institution which is not affiliated to a University cannot offer a degree.

  • How does MBA or PGDM Impact your career?


    • Indian Context

      In purely an Indian context, there is no difference when it comes to how the industry treats PGDM and MBA graduate. If you see, 9 out of top 10 B Schools in India offer PGDM / PGP and not MBA. This is the testimony to the fact that there is no difference between the two in India.

    • Global Context

      Let us divide the analysis in Global context in two parts: Jobs perspective and Higher Education (like PhD or double MBA) perspective.

From job perspective, there is no difference even in global arena, especially if you are coming from a reputed B School of India. What matters more is the brand perception of institute, alumni base and how the respective industry treats your institute. Name of degree, MBA or PGDM doesn’t matter.
However, when we talk from the perspective of Higher Education; yes there is a difference and having an MBA degree helps you a bit more as compared to having a Diploma.


Thus, which is best?

[sociallocker]Well, teachers say the course value depends on the institutes than the degree itself. An MBA from a Central University or an established management department in the State University definitely has an advantage given its experienced faculty and infrastructure. At the same time, a PGDM from institutes like ISB, IPE, XLRI or such top institutes has a brand value and are readily accepted by the industry. While choosing the institution, teachers’ advice that, aspirants should look for the brand of the business school. The brand signifies its established practices that provide better learning environment for personal growth and its networking help students reach its alumni and industry easily. A powerful brand is a tag that can be carried throughout the career.  While PGDM takes on a more professional approach, it’s much costlier than an MBA.  The reasons why PGDM has a slightly higher edge over an MBA is because the syllabus is quite flexible in addition to it being on a residential campus.  Thus, make a well-informed decision depending upon what will be beneficial to you under the given circumstances.[/sociallocker]

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Srinivasan S

Jul 15, 2016

Excellent Comparison. Big confusion between MBA and PGDM. But now I got clear idea in it. It is very useful for my career......... Thanks

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