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Is an MBA Better Than a PGDM? Here's What You Need to Know Before You Decide

By
Saurabh Paradkar
July 24, 2025

In case you are a student ready to enter postgraduate management, you will definitely enquire: "Should I do an MBA or a PGDM?" or perhaps "Which has better placements — MBA or PGDM?" With so many opinions being thrown around, it can only get more and more confusing for the seeker.

In this blog, let us give you a concise explanation of the key differences, similarities, and ensuing consequences, provided so that you might make an informed decision. Your career objectives should be the guiding factor on this.

Short Answer: Both Are Valuable - The Right Choice Depends on the Institute and Your Career Goals

The MBA (Master of Business Administration) is a degree granted by universities or colleges affiliated with universities.

The PGDM (Post Graduate Diploma in Management) is a diploma; however, after being approved by the AICTE and accredited by the AIU, it is deemed to be equivalent to an MBA.

Both should, in theory, provide similar careers if done through a reputable institution. Here is the better way to meaningfully compare them:

1. Core Difference: Degree vs Diploma

Insight: Despite the label “diploma,” a PGDM from an AIU-recognised institute is treated as MBA-equivalent in India and abroad.

2. Curriculum & Industry Relevance

MBA programs are generally theoretical and follow a prescribed curriculum given by the universities. These are updated less frequently.

PGDM syllabus are designed by autonomous institutes and are updated regularly, thus providing flexibility, industry-orientation, and practicality.

At IES MCRC, the PGDM curriculum keeps changing, covering newer areas like Business Analytics, FinTech, Digital Strategy, and AI in Management — all geared to place students ahead of the curve.

3. Pedagogy & Learning Experience

MBA programs generally carry a more academic and examination-oriented approach.

PGDM institutions, however, follow case study methodology and learning by conducting workshops, live projects, and internships in industry to realise learning through experience.

If your priorities are experiential knowledge, skill-building, and real-world exposure, PGDM holds the edge for you.

4. Placements and Career Opportunities

When it comes to placements, the reputation of the institute matters more than whether it offers an MBA or PGDM.

Top companies recruit equally from both, including:

  • MNCs and Indian corporates
  • BFSI, IT, Consulting, FMCG, EdTech, and Startups
  • Roles in Marketing, Finance, HR, Operations, Business Analytics

IES MCRC has strong placement support with industry partnerships and alumni across Deloitte, Capgemini, HDFC, ICICI, Pidilite, Tata Capital, and more.

5. Global Acceptance

Worrying about recognition abroad?

  • A PGDM from an institute recognised by the AIU is considered equivalent to an MBA for the purposes of jobs and further education abroad.
  • But for pursuing a Phd or teaching in public universities abroad, perhaps an MBA (degree) is needed.

Studying or working overseas? Do ensure the prospective institute's AIU equivalence or its ties abroad.

6. Cost & Duration

  • The duration for MBA and PGDM is usually 2 years.
  • Fee structures − infrastructure, location, brand, and placement assistance − all dictate the fee.

Please do not decide on cost alone - try and analyse the ROI (Return on Investment) through average placements, alumni support, and brand credibility.

How to Choose Between MBA and PGDM

Ask yourself:

  • Is it an academic experience associated with a university or is it the corporate-oriented, practical choice?
  • Is it updated regularly to meet the needs of the industry?
  • What are the placement results, and what do alumni say?
  • Does the institute have accreditation by AICTE, AIU, or NBA?

If you’re seeking a future-ready, skill-based program in the heart of India’s financial capital, the AICTE-approved PGDM at IES MCRC, Mumbai is a strong choice.

PGDM vs MBA - It’s About the Right Fit, Not Just the Name

There’s no clear winner - both MBA and PGDM can lead to great careers if you choose the right institution. What matters most is:

  • Curriculum relevance
  • Placement support
  • Industry exposure
  • Faculty and infrastructure
  • Location and networking

A well-structured PGDM from a reputed B-school like IES MCRC can be just as - if not more - valuable than a traditional MBA.

Quick FAQs: MBA vs PGDM

Q: Is PGDM valid for government jobs or PhD?
A: Yes, if the PGDM is from an AIU-recognised and AICTE-approved institution, it’s considered MBA equivalent.

Q: Is MBA more valuable than PGDM?
A: Not necessarily. PGDM programs from top institutes like IIMs or IES MCRC often have more updated, industry-relevant curriculums.

Q: Can I get the same placement opportunities with PGDM?
A: Absolutely. Recruiters prioritise skills, performance, and brand of the institute over the degree label.

Still confused? Talk to our admissions team at IES MCRC to understand how our PGDM can align with your career aspirations.

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