PGDM vs MBA: What’s the Difference?

The PGDM and the MBA are two popular postgraduate business courses in India. While each typically takes two years to complete and has many similarities, they are not on the same course and have key differences.

This article examines each course and compares its educational requirements, necessary skills, salary, and job opportunities. We also discuss factors that can help you choose between a PGDM and an MBA. 

PGDM vs. MBA 

You'll find several things to consider when deciding between a PGDM and an MBA. While employers widely accept both courses, and both give a postgraduate qualification in business management, the courses differ. 

An MBA is a postgraduate degree course offered by accredited universities, approved by the University Grants Commission (UGC), and often recognised across the world. A PGDM is a postgraduate diploma offered by independent business schools in India, approved by the All India Council for Technical Education (AICTE). It is becoming popular in India but less well known globally, and whether it is accepted in some countries depends on the reputation of the business school. 

Both programmes offer valuable business qualifications. But as they are different in approach to tuition, have a different syllabus, and have different outcomes for your career, you’ll have much to consider when deciding between them. Let’s break this down in more detail. 

What is a PGDM?

A PGDM stands for Postgraduate Diploma in Management and is a two-year course resulting in a qualification in business management. The programme is heavily based on industry demands, allowing students to learn in a classroom and hands-on way, connecting with business professionals. As independent schools run it, institutions are free to change the curriculum in line with industry trends and standards, making it highly relevant and flexible. 

A PGDM course covers a range of subjects designed to build essential management skills, including marketing, finance, operations, and human resources. Students also have the opportunity to specialise in a specific industry, making the programme highly tailored. 

What is an MBA?

An MBA, or Master of Business Administration, is one of the most popular graduate programmes in the world. It is especially popular in India, where MBA courses are offered across over 5,000 government and private colleges [1]. 

An MBA course typically lasts two years and follows a core syllabus that is the same or similar across courses. It is often updated every several years to align with industry standards, but not as often as a PGDM. 

Students cover various business topics, such as business administration, accounting, business operations, human resources, and communication, to prepare for a career in business management.

Educational requirements for PGDM and MBA

The entry requirements for a PGDM and an MBA are very similar. Both require a degree from a recognised university with a 50 percent higher score. However, different universities and business schools have different requirements regarding entrance exams and interviews. 

Skills for PGDM and MBA

PGDM and MBA courses are similar regarding the skills needed to succeed. Core subjects are similar, and students in both an MBA and a PGDM programme might be looking for similar jobs.

However, according to industry trends, the MBA is considered more theoretical and technology-based, and the PGDM is often more hands-on and skills-based. Therefore, your skills in each area may determine which course best suits you. 

Salary for PGDM and MBA

In India, both the PGDM and MBA are highly regarded by employers. Regarding salary, you’ll find differences in the types of jobs you apply for. Still, the average annual salary for an MBA graduate in India is ₹9,00,000. In contrast, a PGDM graduate's average starting annual salary is ₹7,73,000, according to ISBR Business School [2]. 

The actual salary you receive may also depend on the reputation of the school you attend. For instance, if we compare the placement salary of graduates from the top MBA courses versus placement salary from the top PGDM courses, you’ll find the top MBA salary is ₹34,70,000 (ISB Hyderabad) versus ₹33,02,000 (SP Jain Institute of Management and Research), according to Collegedunia [3]. 

Job opportunities and salaries for PGDM and MBA

While both the PGDM and the MBA are business courses, they lend themselves well to different roles. Below is a list of jobs typically for MBA and PGDM graduates and their associated annual salaries.

PGDM graduate jobs

• PR officer: ₹3,08,368

• Brand manager: ₹7,94,699

• Business consultant: ₹11,31,994

• Project manager: ₹14,29,937

• Data scientist: ₹9,79,937

MBA graduate jobs 

• Account manager: ₹610,553

• Business analyst: ₹6,90,734

• Finance advisor: ₹4,93,254

• Marketing manager: ₹7,46,115

• Business development manager: ₹6,70,402

*All salary information sourced from Payscale as of July 2024. 

PGDM and MBA compared: How to decide which one to pursue

Choosing between a PGDM and an MBA requires looking beyond their credentials and potential salaries. As each course offers something different, assessing which best suits you, how you learn your future aspirations and your budget is important. 

Look at your approach to learning.

The MBA and PGDM are often taught differently. The PGDM is typically more practical and industry-based than the MBA, which is more theoretical. It’s important to consider how you learn best and what you find most enjoyable. 

Consider your budget.

MBA programmes may cost less than PGDM courses when delivered by government institutions, which are eligible for funding and grants. PGDM courses are delivered by private independent business schools and Indian Institutes of Management (IIMs). IIMs also charge high fees for MBAs if they offer them.

Consider your future career plans.

Although both courses are similar and cover similar core subjects, your career plans may be more suited to one course or the other. Consider the job you wish to pursue and which course it relates to. 

The institute you study at also impacts your career choices. In addition to choosing between a PGDM and an MBA, your place of study will influence your job prospects based on its reputation, so make sure you factor this into your decision.

It’s also important to consider where you see your career taking you. While most consider the PGDM equal to an MBA in India, an MBA is more widely acknowledged in some other countries. 

Consider your salary expectations.

What you will earn as a PGDM or MBA graduate will depend on factors including specialisation, the title of the role, and where you studied. It is worth researching certain roles and their expected salary. 

Getting started with Coursera

If you’re interested in studying for an MBA or a PGDM, you must have a bachelor’s degree and knowledge of business management. Before applying, why not consider an online course to improve your business skills? Coursera offers a range of courses, including the Entrepreneurship Specialisation delivered by the University of Pennsylvania.