Cost Analysis of MBA vs PGDM

Posted by educationsunstone on February 9th, 2021

One thing that an MBA aspirant is not short of is ‘choices’. Choosing between an MBA or PGDM, full-time and part-time, online or regular etc. These are all the choices that an aspiring management student is faced with. However, the main decision has to be choosing between an MBA vs PGDM. There are many factors that differentiate between an MBA & PGDM, like duration, accreditation, subject choice etc. Here we will be clearing one of the crucial differentiating factors between an MBA and PGDM - the cost of the degree. 

Cost Analysis: MBA vs PGDM

Probably one of the main deciding factors, after the B school is the cost of the program. The fee you will be paying is what is going to decide if you will be pursuing a PGDM or MBA program. A management degree has been a costly affair since the beginning. However, over the years, we have seen a constant rise in the number of colleges or institutes offering a management course along with an increase in the fee structures. 

Fee Structure of an MBA

An MBA degree can only be offered by a University Grant Commission (UGC)  approved university or university-affiliated institute. An MBA is a Master’s in Business Administration and requires one to sit for state exams like MAHCET, UP-CET etc. Some universities also accept CAT and MAT scores. An MBA degree is fairly cheaper than a PGDM. As an MBA is offered by universities or affiliated institutes, it is substantially cheaper to pursue an MBA vs PGDM. 

For instance, if you are a fresher, you have ample time to pursue an MBA, so an MBA will be a better option for you. If you are a working professional looking to widen your skillset into a field of your choice, you should go for a PGDM or exec-MBA. However, only an MBA can offer you the choice of doing a dual specialisation in MBA. 

An MBA in India from a premier institute can cost anything from Rs 2-14 Lakhs. However, keep in mind that the competition you will have to win from is ten folds what you will find in the case of a PGDM. 

Fee Structure of a PGDM

A PGDM or Post Graduate Diploma in Management is offered by autonomous institutes that are acredited by the All India Council for Techhnical Education or AICTE. As the name suggests, this government body makes sure that the autonomouus institute is offering technical or vocational training to students. A PGDM vs MBA main difference is that if a person is looking for a skill set pertaining to a particular field, a PGDM is what he/she should go for. 

A PGDM offers a diploma or certification in a job specific manner wheras an MBA offers core concepts and fundamental knowledge of running a business. There are 3500+ PGDM colleges or AICTE acredited institues that offer a PGDM course. However, in terms of fee structure, A PGDM is more expensive as compared to an MBA degree. For instance, IIM is an institute offering PGDM courses that cost anywhere from Rs 18 Lakhs - 21 Lakhs. 

Conclusion

A PGDM is more costly than an MBA as it offers technical, job-specific knowledge, whereas an MBA provides fundamental business knowledge. A PGDM can only be offered by AICTE acredited autonomous institutes whereas an MBA is offered by a UGC acredited university or university affiliated colleges. As universities fall under the state or central government, the cost of an MBA is subsidised as compared to a PGDm which is offered by autonomous institites. So first be sure of what best suits your interests and career goals and then decide what is the best ooption as per your career progression.