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Is PGDM equivalent to MBA? Understanding the Key Differences and Similarities
- Saurabh Kulkarni
- Aug 21, 2025
- 7 min read
If you are looking to pursue an advanced degree within management, two words frequently come up: MBA (Master of Business Administration) and PGDM (Post Graduate Diploma in Management). The two programs are frequently thought of as to be interchangeable, but is it actually identical? The answer is both yes and no.
Students looking to explore their future in business particularly at a reputable B-School in Pune or one of the top MBA & PGDM institutes in Pune understanding the differences in the two programs PGDM as well as MBA is vital. In this blog we break it down to aid you in making the best decision.
Understanding the Basics
What is an MBA?
MBA courses programmes are linked with reputable universities like Savitribai Phule Pune University, Mumbai University, or Delhi University. They follow a curriculum set by the university for the course that is recognised as a full postgraduate degree. Generally they are delivered by public or private colleges that are associated with a university and operate on the course scheme provided by the university.
MBA courses generally focus on educational learning and theoretic concepts in management. This model is appealing to students seeking research-based methods of learning.
What is a PGDM?
PGDM course refers to academic programs run by autonomous institutes which are approved by the All India Council for Technical Education (AICTE). Autonomous institutes are not affiliated with any university. They can create their own course content based on the latest trends and needs of the business world.
Despite being a Diploma, PGDM course from a reputed b school in Pune is frequently regarded as similar to an MBA particularly, when it is acknowledged as such by the Association of Indian Universities (AIU).Learn more about ASM IBMR’s global tie-ups and student exchange programs.
Key Differences Between PGDM and MBA
Understanding the fundamental differences can assist in making an informed choice:
1. Accreditation and Affiliation
MBA: This MBA program is associated with a recognized university such as Savitribai Phule Pune University. These programs adhere to a prescribed course of study that is set by the institution and give a formal postgraduate degree at the time of the completion. Recognized by UGC. The curriculum is usually modified less often due to university rules.
PGDM: PGDM is a program from independent institutes. These institutes are recognized by AICTE and are able to make curriculum relevant to the industry with a focus on practical aspects and requirements for the marketplace.
2. Degree vs. Diploma
MBA can be described as a college degree and PGDM is an official diploma. However, if the PGDM is approved by AIU, it is treated as equivalent to an MBA and is accepted for PhD admissions and government jobs.
3. Curriculum Flexibility
PGDM programs are typically more fluid and receptive to changes in the industry, while MBA programs tend to follow a standard curriculum.
4. Teaching Methodology
MBA focus on both theoretical knowledge and practical skills, with an emphasis on developing managerial and leadership abilities.
PGDM includes case studies, live projects, internships and a method of teaching that is based on application.
5. Course Structure
MBA programs are generally semester-based and PGDM programs usually utilize the trimester method that allows for faster and more flexible learning.
Key Similarities Between PGDM and MBA
Despite their differences in structure, MBA PGDM courses share several similarities:
Duration: Both are generally two-year postgraduate programs that are full-time.
Specializations: The two provide a range of specializations like Finance, Marketing, Human Resources Operations, and much more.
Career outcomes: Students from both programs can be considered for management positions in top companies.
Higher Education: Holders of PGDM (with AIU equivalence) and MBA graduates are qualified to apply for PhD programs as well as government positions.
Skills Development: Both programs are designed to help develop leadership skills, business acumen, strategic thinking, as well as communications skills.
Salary Outlook for MBA and PGDM Graduates
Students from both MBA & PGDM institutes in Pune or top-tier institutions typically start with salaries ranging from ₹6–10 LPA. Graduates of top institutions or top private schools can be earning up to Rs 15-20 LPA or even higher depending on the area of study and previous experience.
How Employers View PGDM and MBA
Recruiters nowadays focus on abilities, attitudes and experience instead of focusing only on the title of your diploma or degree. If you have an MBA, a PGDM the most important thing is:
Your understanding of management concepts
Experience in the field through internships, or other projects
Leadership and communication skills
The reputation of the b school in Pune or elsewhere
In the majority of corporate hiring situations, PGDM and MBA graduates from well-known institutions are on the same level.
How to Choose the Right Program for Your Career Goals
If you're trying to decide between the options of a PGDM or an MBA there's no standard solution. Take into consideration these factors:
Career goals: If you plan to go into academia or even pursue an advanced degree, make sure that your PGDM is recognized by AIU.
Learner Style: Decide according to your preference for structured, theory-based training (MBA) or a more hands-on, flexible style (PGDM).
Institute Reputation: This could be the most crucial element. An established, highly rated institute of management can provide you with an advantage regardless of the name of the program.
Salary Comparison: MBA vs PGDM in India
Salary is a major consideration when choosing between an MBA and a PGDM. Here’s a clear comparison based on recent data:
Aspect | PGDM Graduates | MBA Graduates |
Average Starting Salary (Top Institutes) | ₹7–12 LPA | ₹10–20 LPA |
Average Salary (Mid-Tier Colleges) | ₹7–9 LPA | ₹6–10 LPA |
Highest Salary (Top Tier) | ₹70+ LPA (Domestic), ₹1+ Cr (International) | ₹30–55 LPA (Domestic), ₹80+ LPA (International) |
Specialization Impact | Finance, Consulting, Product Management often command higher salaries | Business Analytics, Finance, Marketing are top-paying |
Salary Growth Over Time | Rapid in consulting, tech, product roles | Good in stable fields like HR, finance, public sector |
Top PGDM institutes offer higher starting salaries due to strong industry connections and practical curriculum.
MBA graduates from elite universities also command high salaries, especially in finance, consulting, and analytics roles.
Mid-tier colleges show less salary difference between MBA and PGDM; factors like institute reputation and personal skills become more significant.
Specializations such as finance, consulting, product management (PGDM) and business analytics, finance, marketing (MBA) can lead to higher compensation.
Why Choose ASM’s IBMR - A Leading Institute of Business Management in Pune
ASM’s Institute of Business Management and Research (IBMR) is located in Pune, one of India’s leading education and business hubs. With a legacy of over 40 years, ASM’s IBMR has grown into a forward-thinking institution known for its strong industry partnerships and global learning approach. Here’s a closer look at what makes ASM’s IBMR a preferred choice for students, with a focus on its flagship PGDM and MBA programs:
Specializations: Dual specializations are available, including Marketing & International Finance, Marketing & HRM, International Finance & HR, Marketing & Supply Chain Management, Emerging Technologies & Marketing, and Agri-Business Management.
Curriculum: Designed in collaboration with industry leaders like IBM and SAP, the PGDM curriculum emphasizes real-world case studies, live projects, and industry certifications (e.g., SAP, AWS, Microsoft, IIM Nagpur Immersion Program).
Global Exposure: Options for international study tours, semester abroad, and summer school programs with partner universities in the USA, Europe, Asia, and Africa. Collaborations include CETYS University (Mexico), City University of Seattle, and others.
Placement Support: 100% placement rate for PGDM, with the highest package reaching INR 16–24 LPA and an average package of INR 7.5 LPA. Top recruiters include Deloitte, Amazon, Hexaware, and KPIT Cummins.
Eligibility: Bachelor’s degree with a minimum of 50% marks (45% for reserved categories) and a valid entrance exam score (CAT, MAT, XAT, CMAT, MAHCET).
Affiliation: Approved by AICTE and affiliated with Savitribai Phule Pune University.
Specializations: Marketing, Financial Management, Human Resource Management, Operations & Supply Chain Management, and Business Analytics. Students can choose major and minor specializations from the second year.
Curriculum: Combines core management theory with practical exposure through internships, industry projects, and global certifications (SAP, HBP Online, Microsoft, etc.).
International Exposure: Opportunities for international faculty workshops, exchange programs, and global case-based learning.
Placement Support: High placement rates, with an average package of INR 6.5–6.8 LPA and the highest package up to INR 12–16 LPA. Recruiters include Deloitte, Infosys, HDFC Bank, and TCS.
Eligibility: Graduation with at least 50% marks (45% for reserved categories) and a valid entrance exam score.
Additional Reasons to Choose ASM’s IBMR
Experienced Faculty: Blend of seasoned academicians and industry professionals who bring real-world insights into the classroom.
Modern Infrastructure: State-of-the-art facilities, including smart classrooms, advanced computer labs, and a comprehensive library.
Global Collaborations: Academic tie-ups with leading international universities for student and faculty exchanges, joint research, and global certifications.
Holistic Development: Emphasis on extracurricular activities, leadership programs, and community engagement for all-round growth.
Recognition: Consistently ranked among the top B-schools in India, with an A++ rating by Business Standard and awards for innovation in curriculum.
FAQs about PGDM Equivalent to MBA?
1. Is PGDM equivalent to an MBA?
Yes, with regard to potential and value, PGDM (Post Graduate Diploma in Management) is similar in value and career opportunities to the MBA. But it is important to note that the MBA has a formal degree; however, the PGDM is a diploma.
2. Why is PGDM a diploma and not a degree?
PGDM is provided through autonomous institutes regulated by AICTE and does not have any affiliation with universities. Only universities are able to award degrees. This is why PGDM is a degree.
3. Are PGDM graduates eligible for PhD or further studies?
Absolutely, PGDM alumni from accredited institutions (Association of Indian Universities) are considered to be equivalent with MBA holders and are eligible to apply to PhD programs.
4. What are the main differences in curriculum between MBA and PGDM?
MBA is a university-based program and could be a predetermined curriculum. PGDM is an independent program that is more frequently updated and focuses on the latest business trends and practical knowledge.
Conclusion
So, is PGDM equivalent to an MBA? In many ways, that matters to employers and students the answer is - yes. Both programs lead to rewarding career opportunities in leadership, management and entrepreneurship. The key lies not in the name, but it lies in the high-quality of education as well as the institution you select.
No matter if you opt for PGDM or MBA, ensure that you choose an institution that is in line with your goals and offers a strong exposure to industry and allows you to grow both professionally as well as personally.