MBA vs PGDM: Key Differences, Career Impact, and Which to Choose
When students start thinking about degrees in business after their undergrad, the most common question we get is about choosing between a PGDM vs. an MBA. Both paths lead to success in a business career but take very different routes.
Some students will wonder if they are just the same program with different names, and still others will ask which one is better between a PGDM and an MBA.
These are valid questions because both programs cover similar subjects, such as finance, marketing, and operations. However, the structure of both, their focus, and recognition vary significantly. “PGDM” is short for “Post Graduate Diploma in Management”, and MBA for “Master of Business Administration”.
In this guide, we’ll break down everything you need to know when comparing a PGDM vs. an MBA.
So without any further delay, let’s get right into it.
MBA vs PGDM: What do they mean?
In this section, we’ll give you an overview of a PGDM vs. an MBA.
What is an MBA?
“MBA” is an acronym for “Master of Business Administration”. It is the ultimate degree for 99% of people who are looking to make a career for themselves in management. PhDs in Business do exist, but those are mainly pursued by people who are looking to research business and business applications. Anyhow, MBAs are full level degree programs offered by universities or by institutions affiliated with universities.
Since it is a degree, an MBA must follow a curriculum set by the respective university and is often regulated by the country’s higher education authority.
In India, MBAs follow curricula set by the UGC (University Grants Commission), and can specialise in various areas.
However, many Indians aim to go abroad for their MBAs, and some popular destinations are:
- The T-1 circuit in France: ESSEC, EDHEC, INSEAD, ECSP, HEC Paris, etc.
- The UK: LSE, ICL, LBS, UCL, UOL, Bayes, Warwick, etc.
- Other European Schools: FSFM Germany, Bocconi Italy, IE Spain, etc.
- The USA: Stanford, Harvard, Princeton, Yale, NYU, UT Dallas, Duke, Penn State, etc.
MBA programs are known for their focus on theoretical knowledge and academic depth.
Often, most MBAs will have a research aspect to them.
And while you can have a general MBA, most students choose to specialise in some area, such as HR, or law, or tax.
Now, let’s learn what a PGDM is.
What is a PGDM?
As we mentioned above, “PGDM” stands for “Post Graduate Diploma in Management”. It is also used somewhat interchangeably with PGPM, which is an acronym for “Post Graduate Programme in Management”.
All PGDMs are PGPMs, but not all PGPMs will award you a diploma.
So if the course you are considering is a PGPM, make sure to ask if it is a diploma or just a certificate course in management. A diploma would hold a lot more weightage than just a certificate program.
In India, PGDMs are offered by autonomous (fully independent) institutions recognized by the All India Council for Technical Education (AICTE).
Unlike an MBA, the PGDM COURSE is not a degree but a diploma, which gives institutes more flexibility curriculum-wise. This flexibility lets PGDM courses become rather specialised in a niche, if the institution so desires. Key examples of the niche-ness would be a PGDM in import-export management, offered by Symbiosis Pune.
Another one would be the PGDM in Artificial Intelligence by IILM Lodhi.
PGDMs are also mostly an Indian offering, as very few, if any foreign colleges will offer something similar.
The closest examples to a PGDM that we could find in the USA were:
- UMichigan-Flint’s Postgraduate Certificates in Accounting / Finance / International Business / Leadership / Marketing
- UPortland’s Postgraduate Certificates in Strategy / Marketing / Entrepreneurship
- Colorado State’s Online Postgraduate Certificates in Applied Finance / Cybersecurity / Business Management
- USC Marshall’s Graduate Certificates in Management Consulting / Business Analytics / Sustainability and Business / Business Taxation / Management Studies
- York University’s Post Graduate Certificate in Business Administration
As you can see, there aren’t very many PGDM-esque courses in the USA. And when it comes to comparing a PGDM vs. an MBA, an MBA will always come out on top. However, MBAs are a lot more expensive than PGDMs and are more rigorous too.
Both an MBA and a PGDM are advanced courses, meant to be completed after your bachelor’s degree.
Usually, the most competitive programs will also have minimum work experience requirements (usually two to five years).
So now that you know what a PGDM is and what an MBA is, let’s look at the key differences between a PGDM vs. an MBA.
10 key differences between a PGP(M)/ PGDM vs. an MBA
Here are the main differences and their real world impact between a PGDM vs. an MBA:
| Aspect | PGDM | MBA |
| Degree Type | PGDM is a diploma program. | MBA is a degree program. |
| Regulatory Body | PGDM is regulated by AICTE. | MBA is regulated by UGC. |
| Curriculum Flexibility | PGDM offers more flexibility to adapt to industry trends. | MBA follows a more standardised curriculum. |
| International Recognition | PGDM may have limited international recognition. | MBA is widely recognized globally. |
| Focus | PGDM tends to be more practical and industry-oriented. | MBA often balances theory and practice. |
| Duration | PGDM is typically a two-year program. | MBA can be one or two years, depending on the institution. |
| Eligibility | PGDM often requires work experience. | MBA programs may accept fresh graduates. |
| Course Fee | PGDM fees can vary widely between institutions. | MBA fees are generally more standardised. |
| Job Prospects | PGDM graduates often find roles in specific industries. | MBA graduates may have broader career options. |
| Alumni Network | PGDM alumni networks may be smaller but industry-focused. | MBA programs often have larger, more diverse alumni networks. |
And now that you know the differences between a PGDM vs. an MBA, let’s look at some of the top colleges offering a PGDM and an MBA abroad.
Colleges offering an MBA or a PGDM abroad
Almost all major universities/ colleges will offer some sort of a postgraduate master’s programme in management.
And more often than not, the program will be an MBA.
Colleges Offering an MBA Abroad:
Here is a list of the top 30 colleges/ universities abroad that are offering an MBA, as per the 2024 QS World Universities Ranking:
| Rank | University | School Name | Country | City/State | Founded |
| 1 | Stanford University | Stanford Graduate School of Business | United States | Stanford, CA | 1885 |
| 2 | University of Pennsylvania | The Wharton School | United States | Philadelphia, PA | 1740 |
| 3 | Harvard University | Harvard Business School | United States | Cambridge, MA | 1636 |
| 4 | Massachusetts Institute of Technology | MIT Sloan School of Management | United States | Cambridge, MA | 1861 |
| 5 | University of London | London Business School | United Kingdom | London | 1836 |
| 6 | HEC Paris | HEC Paris | France | Paris | 1881 |
| 7 | University of Cambridge | Cambridge Judge Business School | United Kingdom | Cambridge | 1209 |
| 8 | Columbia University | Columbia Business School | United States | New York, NY | 1754 |
| 9 | IE University | IE Business School | Spain | Segovia | 1997 |
| 10 | University of Navarra | IESE Business School | Spain | Barcelona | 1952 |
| 11 | INSEAD | INSEAD Business School | France | Fontainebleau | 1957 |
| 11 | Northwestern University | Kellogg School of Management | United States | Evanston, IL | 1851 |
| 13 | University of California, Berkeley | Haas School of Business | United States | Berkeley, CA | 1868 |
| 14 | University of California, Los Angeles | UCLA Anderson School of Management | United States | Los Angeles, CA | 1919 |
| 15 | University of Chicago | Booth School of Business | United States | Chicago, IL | 1890 |
| 16 | Yale University | Yale School of Management | United States | New Haven, CT | 1701 |
| 17 | New York University | Stern School of Business | United States | New York, NY | 1831 |
| 18 | Imperial College London | Imperial College Business School | United Kingdom | London | 1907 |
| 19 | University of Oxford | Saïd Business School | United Kingdom | Oxford | 1096 |
| 20 | Bocconi University | SDA Bocconi School of Management | Italy | Milan | 1902 |
| 21 | Esade Business School | Esade Business School | Spain | Barcelona | 1958 |
| 22 | University of Michigan | Ross School of Business | United States | Ann Arbor, MI | 1817 |
| 23 | Duke University | Fuqua School of Business | United States | Durham, NC | 1838 |
| 24 | IMD | IMD Business School | Switzerland | Lausanne | 1990 |
| 25 | National University of Singapore | NUS Business School | Singapore | Singapore | 1905 |
| 26 | Copenhagen Business School | Copenhagen Business School | Denmark | Copenhagen | 1917 |
| 27 | ESCP Europe | ESCP Business School | France | Paris | 1819 |
| 28 | ESSEC Business School | ESSEC Business School | France | Paris | 1907 |
| 29 | Tsinghua University | School of Economics and Management | China (Mainland) | Beijing | 1911 |
| 30 | University of Warwick | Warwick Business School | United Kingdom | Coventry | 1965 |
As you can see, 15 out of the top 30 MBA programs across the globe are in the United States. Also, the USA has a lot more funding for international students than any other country in the world.
Not to say that the other countries are bad choices.
France, for example, is comparatively a lot more affordable without scholarships (40L-50L) when compared to the USA (1.5 Cr) or the UK (1 Cr).
But if you’re looking for the best variety and the highest chance of getting aid, then the USA is your best bet.
And now, let’s look at PGDM (or similar programs) being offered by universities abroad.
Colleges Offering a PGDM Abroad
Because PGDMs are rare outside India, we’ve had to manually research these as there is no global list. Here is the top ten list we’ve compiled:
| Rank | University | Program Name | Country | City/State | Focus Areas |
| 1 | University of Michigan-Flint | Postgraduate Certificates | United States | Flint, MI | Accounting, Finance, International Business, Leadership, Marketing |
| 2 | University of Portland | Postgraduate Certificates | United States | Portland, OR | Strategy, Marketing, Entrepreneurship |
| 3 | Colorado State University | Online Postgraduate Certificates | United States | Fort Collins, CO | Applied Finance, Cybersecurity, Business Management |
| 4 | University of Southern California (USC Marshall) | Graduate Certificates | United States | Los Angeles, CA | Management Consulting, Business Analytics, Sustainability and Business, Business Taxation, Management Studies |
| 5 | York University | Post Graduate Certificate in Business Administration | Canada | Toronto, ON | Business Administration |
| 6 | Northumbria University | Graduate Certificate in Business | United Kingdom | London | Business |
| 7 | University of Leicester | Post Graduate Certificate in Business Administration | United Kingdom | Leicester | Business Administration |
| 8 | London School of Business and Finance | Postgraduate Certificate in Business | United Kingdom | London | Management |
| 9 | University of Cambridge | Postgraduate Certificate in Sustainable Business (PCSB) | United Kingdom | Cambridge | Sustainable Business |
| 10 | National University of Singapore | Graduate Certificate in Asian Business Management | Singapore | Singapore | Asian Business Management |
Even though PGDM programs are less in number than MBA’s, there is still a lot of variety. Too much variety in fact, for most people. So, instead of being spoiled for choice and choosing randomly, let AI do the heavy lifting for you with GradRight’s university-search platform.
Choose the right MBA or PGDM with GradRight
Choosing the right PGDM or MBA program can be overwhelming, given the vast array of options available. That’s where GradRight comes in, using a data-first approach with AI help, so you can make the best decision for your future.
GradRight goes beyond traditional rankings, considering factors like ROI, fundability, and your unique profile. We use these metrics to create a personalised shortlist of programs where you’re certain to thrive.
Here’s how it works:
- Create a free profile on GradRight’s university-search platform, inputting your academic history, test scores, and preferences.
- Let the platform analyse millions of data points from thousands of programs to match you with the best fit.
- Compare shortlisted programs based on detailed insights such as alumni network strength and placement records.
- Access unbiased expert guidance to help inform your decision-making process.
- Connect with alumni, faculty, and peers from your shortlisted programs for deeper insights.
Don’t leave your PGDM or MBA selection to chance. Use GradRight to make an informed decision that aligns with your academic and career goals.
And once you’ve narrowed down to a program, the next move is to secure funding. And here again, we have an AI tool that can help you, called GradRight’s loan-search platform.
Get funding for your program with GradRight’s loan-search platform
GradRight’s loan-search platform is a powerful tool designed to simplify this process and help you find the most suitable loan option.
Here’s how you can use GradRight’s loan-search platform:
- Visit fund.gradright.com and select your intake (e.g., Spring 2025) and admit status.
- Enter your standardised test scores and choose your university.
- Select your program and specify its duration.
- Input the required loan amount and your permanent address pincode.
- Review the comprehensive overview of available loans and interest rates tailored to your situation.
GradRight’s loan-search platform gives you an “at-a-glance” overview of all major Indian loan providers. We even include non-traditional financiers like NBFCs. In short, GradRight’s loan-search platform makes lenders bid for your business, simply go with the lender offering the lowest interest. This can save you a lot of money over your repayment term. In fact, some students have saved up to 23 lakhs in repayments by using GradRight’s loan-search platform to find the best loan option.
So, sign up on GradRight’s loan-search platform today and take the first step towards optimising your MBA or PGDM funding.
And with that, we come to the end of this article comparing a PGDM with an MBA. We hope you found it useful, and we’ll see you in the next one.
Frequently Asked Questions
1. What are 3 major differences between an MBA and a PGDM?
An MBA is a degree program, while a PGDM is a diploma program. An MBA is also regulated by universities, while PGDMs are not. Lastly, an MBA has a more standardised curriculum, while PGDM offers more flexibility to adapt to industry trends.
2. Does PGDM have more value than MBA?
PGDM and MBA have a somewhat similar value in the job market. The value depends more on the institution’s reputation and the individual’s performance. However, all else the same, an employer would prefer an MBA over a PGDM.
3. Is a PGDM equivalent to an MBA?
PGDM is not exactly equivalent to MBA, but they are similar in content and recognition in the industry.
4. What is the salary difference between MBA and PGDM?
Salaries are not determined by whether you’ve completed an MBA or a PGDM, but more on your resume and the institute. For example, a graduate of the Cambridge sustainable business PGDM we listed would likely earn more than someone with an MBA from a public university.
5. What is the eligibility for a PGDM?
Typically, a bachelor’s degree is required. Some programs may also require work experience or entrance exam scores.
6. Which is better, MBA or PGDM?
Neither is universally better. The choice depends on individual career goals and the specific programs being considered.
7. What is the full form of PGDM?
PGDM stands for Post Graduate Diploma in Management.
8. What is the duration of a PGDM course?
A PGDM course typically lasts for two years.
9. What is the duration of an MBA course?
An MBA course usually lasts for two years, though some institutions offer one-year programs.
10. What are the major subjects in an MBA?
Major subjects in an MBA often include finance, marketing, operations, human resources, and strategy.
11. What are the major subjects in a PGDM?
PGDM subjects are similar to MBA and typically include finance, marketing, operations, human resources, and strategy, with possibly more industry-specific electives.
