Is Post Graduate Diploma Equivalent to Masters?

Post Graduate (PG) Diplomas are not inherently equivalent to master's degrees, but specific AICTE-approved PGDM programs with AIU recognition can achieve equivalence status. While 78% of MBA graduates have the highest employability rate among all degrees, PGDM graduates experience 75% average salary increases and are preferred by 80% of companies for their practical skills.
This article explains the differences and overlaps, compares typical business programs, highlights implications for career and study plans, and gives practical steps to help you choose the best pathway.
What is a Postgraduate Diploma?

A Postgraduate Diploma (PGD) is a focused academic qualification that sits at Level 7 of India's educational framework. Typically lasting one to two years, these programs emphasize practical, industry-relevant skills over theoretical research. In India's context, PGDs are primarily offered by:
- AICTE-approved institutions for management programs (PGDM)
- Technical institutes for specialized fields like IT, engineering, and healthcare
- Government bodies for professional development programs
Postgraduate diplomas are popular because they are shorter, cheaper, and more vocational than full-time master’s degrees. Under the UGC's 2025 regulations, PGDs are structured to provide intensive, career-oriented education with mandatory internships and live project components.
What is a Master's Degree?
A master's degree is an extensive academic credential awarded by universities recognized by the UGC, typically requiring two years of full-time study. These programs combine theoretical depth with research methodology, typically including:
- Coursework and seminars covering broad subject knowledge
- Research dissertation demonstrating analytical capabilities
- Academic rigor preparing students for doctoral studies or specialized careers
The UGC's framework now offers flexible pathways where students with 4-year honors degrees can complete master's programs in just one year, while traditional 3-year graduates require the full two-year duration.
The Equivalence Reality: What You Need to Know
The question of whether a PG diploma equals a master's degree is not straightforward; it depends on accreditation, recognition, and your career objectives. The University Grants Commission's 2025 regulations establish that foreign qualifications and local qualifications are evaluated in view of five significant parameters:
- Recognition at the source through proper supervisory authorities
- Comparable curriculum structure and content
- Program length and course level
- Institution accreditation status
- Mode of delivery compliance
AIU-AICTE Recognition System
For management education specifically, the Association of Indian Universities (AIU) grants equivalence to those PGDM programs that meet stringent requirements:
- AICTE approval of the offering institution
- NBA accreditation for quality assurance
- AIU equivalence certificate following successful evaluation
- Minimum 55% marks for further academic pursuits
Critical Insight: Programs that meet all four specifications receive AIU equivalence, thereby being legally equivalent to MBA programs for purposes of employment and post-graduate education.
When PGDs Are Not Equivalent
The UGC’s 2025 equivalence rules exclude certain professional disciplines where strict regulatory oversight is vital for public safety and professional standards. These include:
- Medicine and Nursing: PGDs in medical fields require separate NMC approval and cannot be treated as equivalent to medical master's degrees.
- Law and Legal Studies: The BCI regulates legal education, as it demands jurisdiction-specific knowledge of constitutional and procedural law. Hence, legal PGDs must meet BCI’s standards.
- Architecture and Planning: The CoA compliance with building codes, safety norms, and professional practice requirements.
- Pharmacy: The PCI sets its own evaluation framework considering India’s drug regulations and clinical pharmacy practices.
These exclusions ensure professionals meet sector-specific competency standards essential for public welfare and professional integrity.
Industry Recognition vs. Academic Recognition
There exists a notable gap between academic qualifications and their actual market worth, as reflected in current employment trends.
- PGDM colleges in India that are approved by AICTE boast an impressive placement record exceeding 95%, highlighting strong employer demand for graduates equipped with relevant technical expertise and practical knowledge.
- Government positions, however, typically favor formal degree qualifications from recognized UGC colleges in Inda.
- Academic careers put a higher focus on candidates with traditional master's degrees for research roles.
- And finally, international recognition varies significantly by country and institution.
PGDM or MBA: Which is Better?
Navigating between a Postgraduate Diploma in Management (PGDM) and a traditional MBA requires clarity on your career goals, financial constraints, and learning preferences. Follow this six-step framework to make an informed, value-driven choice tailored to the Indian business landscape.

Step 1: Clarify Your Career Goals
- Corporate Specialization: If you aim to join the workforce with specialist skills, industry-aligned training, and internship placements that fast-track your employment readiness, a two-year PGDM provided by colleges like IIM Kozhikode and IIM Mumbai can be the best option.
- Research or Academic: For careers in consulting, academics, or research, an MBA’s two-year curriculum with emphasis on theory, case studies, dissertation, and industry recognition can build deeper subject knowledge while providing direct eligibility for doctoral programs.
Step 2: Evaluate Industry Alignment
- Emerging Sectors (FinTech, Digital Marketing, etc.): PGDM programs that regularly update their syllabus through industry partnerships and ensure exposure to live projects and cutting-edge tools are more inclined to provide expertise in emerging new-age sectors in Inda.
- Established Domains (General Management, Strategy): Top-tier MBA programs like IIMs and ISB combine global faculty expertise, alumni networks, and focused electives that cater to high-level strategic but traditional roles.
Step 3: Assess Institutional Accreditation
- PGDM Equivalence: Verify AICTE approval, NBA accreditation, and AIU equivalence certification for PGDM colleges as without these, your diploma may lack master’s-level recognition for government jobs or international mobility.
- University Credentials: Ensure your MBA college is UGC-recognized, with NAAC accreditation and industry-relevant centers of excellence (e.g., entrepreneurship cell, analytics lab).
Step 4: Compare Financial and Time Investments
- PGDM Cost & Duration: PGDM course fees in India vary significantly by institute and specialization, typically ranging from ₹15 lakhs to over ₹20 lakhs with a one-to-two-year duration available. One-year PGDMs yield faster returns on investment through immediate placements and reduced living expenses.
- MBA Cost & Duration: MBA course fees in India also vary significantly between government colleges and private institute, with full-time programs costing around ₹2 lakh to ₹33 lakhs. The extended duration of MBA programs can be offset by campus recruitments, fellowships, and research grants.
Step 5: Match Learning Style and Support
- Hands-On vs. Theoretical: PGDM’s practical-style pedagogy favors experiential learners who thrive on simulations, capstone projects, and direct industry mentoring.
- Structured Curriculum: MBA’s semester system and dissertation requirement suit learners who value academic rigor, peer collaboration, and formal research methodologies.
Step 6: Project Long-Term ROI
- Salary Trajectory: PGDM graduates report 75% average salary hikes upon completion of the program, making it a worthwhile endeavor for aspirants.
- Leadership Pathways: MBA alumni often secure C-suite roles over a longer horizon due to their strong strategic, networking, and research credentials.
By systematically aligning your career timeline, industry focus, accreditation needs, budget, learning preferences, and long-term aspirations, you can select the business qualification that maximizes your professional growth in India’s dynamic corporate ecosystem.
Postgraduate Diploma (Pros and Cons)
Advantages:
- Rapid skill acquisition with industry-focused curriculum.
- Higher employment readiness due to an experiential pedagogy.
- Curriculum flexibility allowing integration of emerging technologies.
- Strong industry partnerships providing direct corporate exposure.
Disadvantages:
- Limited global recognition compared to university degrees.
- Restricted PhD pathway without proper AIU equivalence.
- Variable quality standards across institutions.
- Government job limitations in positions requiring specific degree qualifications.
Master's Degree (Pros and Cons)
Advantages:
- Universal recognition across academic and professional domains.
- Research foundation enabling doctoral program eligibility.
- Comprehensive knowledge base supporting diverse career transitions.
- International mobility facilitated by global degree recognition.
- Academic career pathway for university teaching and research roles.
Disadvantages:
- Longer time commitment, typically requiring 2 years to complete.
- Higher total costs, especially in tier-1 private institutions like IIMs.
- Limited practical exposure compared to industry-focused programs.
- Slower career entry due to extended program duration.
FAQ
Q1. Can I do a master's after a postgraduate diploma?
Ans: Yes, pursuing a master's degree after completing a PGD is entirely feasible. However, since both are postgraduate qualifications through their specific equivalence, it is important to understand your purpose behind pursuing a master's after a postgraduate diploma. If your postgraduate diploma is not equivalent to a master's degree, you can pursue it depending on these factors:
- Academic performance: Minimum 55% marks is typically required.
- Program relevance: Transitions to relevant fields become smoother.
- Credit transfer possibilities: Some universities accept PGD credits in master’s requirements.
Summing Up
In conclusion, choosing between a PGD and a master’s degree specifically in business hinges on understanding your career goals, desired learning experience, and long-term plans within the dynamic Indian education and employment landscape.
The 2025 UGC regulations clarify that the equivalence of PGDs to master's degrees depends critically on accreditation and program standards, underscoring the importance of verifying institutional approvals and recognition status before making educational investments. This ensures your qualification opens doors for desired employment and further studies without limitations.
Ultimately, aligning your choice with factors such as course curriculum, institutional reputation, financial considerations, and career aspirations will maximize your professional growth and fulfillment in India’s evolving business ecosystem.