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Post Graduate Diploma in Management (PGDM) vs MBA

Essentially both post Graduate Diploma in Management (PGDM)  and MBA  are business education degrees except that MBA is a degree programme given by University departments or  Government University affiliated  schools, whereas PGDM is a diploma programme given by autonomous business schools.  Both the private universities and the public universities whether at the centre or the state can provide MBA degrees while PGDM is the only degree which the  autonomous business schools  are permitted to provide under the current All India Council for Technical Education (AICTE)

PGDM is a typical Indian Product.  Although Diploma Programmes are seen in various countries, PGDM as equivalent or a substitute for MBA is an Indian phenomenon.  It started with IIM-C [1961] and IIM-Ahmedabad [1962].  It was the firm view of the Government at that time that IIMs must not be part of any University and it must stand on its own legs with the necessary resources, autonomy and brand name.  Giving Degree Granting powers to IIMs [like IITs] was not thought of at that time.  It is in that context that the new nomenclature ‘PGDM’ was invented and the IIMs started giving the PGDM Certificates to its graduates in place of MBA. It is worth mentioning that MBA Programmes were in existence in India even at that time. For example: Andhra University in 1957.

It must have been a conscious decision on the part of Government of India to advise IIMs to start with PGDMs.  This arrangement stayed on: XLRI followed suit in 1968.  IIM-B did the same in 1973 and IIM-Lucknow in 1984.  With the IIMs in the vanguard of the PGDM movement, it caught on.  Many other quality-driven and autonomous-minded institutions that came along followed the PGDM route.

  • MDI in Gurgaon

  • IMT in Ghaziabad

  • IMI in Delhi

  • FORE School in Delhi

  • NMIMS in Mumbai

  • Welingkar Institute in Mumbai

  • XIM in Bhubaneswar

  • Loyola Institute of Business Administration (LIBA), Chennai

  • Great Lakes Institute of Management, Chennai

  • Goa Institute of Management

  • TA Pai Institute of Management, Manipal

  • Xavier Institute of Management & Entrepreneurship, Bangalore

Over a period of time, PGDM acquired the true brand of a ‘Business School’ in the country. Although many Universities started MBA Programmes of their own and the pernicious system of ‘affiliation’ also caught on, the PGDMs [including that of IIMs] emerged as rock stars in the field of Management Education.

AICTE has been the Regulatory Body of PGDM institutions from 1988, although All India Board of Management Studies was the original regulator.

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