Legal history
IIMs before the 2017 Act: PGDM, not an MBA degree
Until 2018 the IIMs were autonomous societies, not universities. Their flagship programme awarded a Post Graduate Diploma in Management — a PGDM, not an MBA. The 2017 Act changed only the legal instrument; the institute remained the same. Autonomous institutes such as IICT and IIPM still operate on the same pre-2018 IIM model.
The short answer
Before 31 January 2018: every IIM was a registered society under the Societies Registration Act, 1860. It could not award degrees. Its two-year flagship was the Post Graduate Programme in Management, and the certificate said Post Graduate Diploma in Management (PGDM) — sometimes marketed as a Masters Diploma in Business Administration. A diploma, not a degree.
After the IIM Act, 2017: the same programme awards an MBA, and the doctoral programme awards a PhD. The faculty, curriculum, admissions process and placements did not change overnight. The legal form did.
The point worth remembering is that the IIMs sat on the diploma side of the line for more than fifty years and were never the lesser thing for it. The value was in the institute, not in the word.
What 'autonomous society' actually meant
Each IIM was governed by its own society and board of governors, set its own curriculum, ran its own admissions test until CAT became common, and issued its own diploma. It was not a university, and a non-university in India cannot grant degrees. That was not a flaw; it was the standard legal home for many of India's best professional and research institutes.
| Point | Pre-2018 IIM | After the IIM Act |
|---|---|---|
| Legal form | Registered society under the Societies Registration Act, 1860 | Institution of National Importance created by Act of Parliament |
| Can it award degrees? | No — only diplomas/certificates | Yes — MBA and PhD |
| Flagship award | Post Graduate Diploma in Management (PGDM) | Master of Business Administration (MBA) |
| Doctoral award | Fellow Programme in Management (FPM) | Doctor of Philosophy (PhD) |
| Governance | Society rules and Board of Governors | Statutory Board of Governors under the Act |
Why the PGDM was never a weakness
The PGDM from an IIM was accepted by employers, foreign universities for further study, and professional bodies because it came from an IIM. The word "diploma" made it sound lesser only if you ignored the fifty-year track record behind it. In practice, a PGP from IIM Ahmedabad, Bangalore or Calcutta was one of the most valuable management qualifications in the country.
That is the precedent that matters today. An autonomous institute's own diploma is judged by the institute, not by whether the certificate uses the word "degree". The right question is not "is this called an MBA?" but "what does the rule in my path require?"
Where the degree-versus-diploma line still matters
There are narrow cases where a written rule names a "degree" and a diploma does not satisfy it. These are worth knowing so you do not buy a programme for a purpose it cannot serve.
| Situation | Does PGDM vs MBA matter? |
|---|---|
| Private-sector hiring | Almost never. Employers hire the institute and the candidate. |
| Indian government recruitment | Often yes, if the notification explicitly requires a postgraduate degree. |
| PhD admission | Usually yes. Most doctoral programmes require a master's degree. |
| Foreign credential evaluation | Yes. Evaluators treat a diploma and a degree differently. |
| Promotion policy naming a degree | Yes. This is the most common practical reason people re-qualify. |
IIM before 2018 vs IICT and IIPM today
IICT (Indian Institute of Commerce and Trade) and IIPM (Indian Institute of Pharmaceutical Marketing) are Lucknow-based autonomous institutes that operate on the same legal footing the IIMs used before 2017.
| Attribute | IIMs before 2018 | IICT / IIPM today |
|---|---|---|
| Legal registration | Society under the Societies Registration Act, 1860 | Society under the Societies Registration Act, 1860 |
| Autonomy | Self-governing; own curriculum, admissions and awards | Self-governing; own curriculum, admissions and awards |
| Flagship award type | PGDM / Masters Diploma in Management (own award) | MBA-level programme / PG Diploma / Diploma (own award) |
| Focus | General management excellence through residential programmes | Domain management excellence through flexible online/distance programmes |
| Delivery mode | Mostly full-time, residential, on-campus | 100% online / distance, designed for working professionals |
| Recognition driver | Institute brand, alumni network and placement record | Institute brand, curriculum alignment and professional relevance |
The only material difference is the delivery model. IIMs built their reputation through full-time, residential programmes. IICT and IIPM apply the same autonomous-institute model to online and distance education for professionals who cannot leave their jobs.
What changed in 2017, and what did not
The Indian Institutes of Management Act, 2017 did three things. It gave the IIMs a new legal personality as Institutions of National Importance. It gave them the statutory power to grant degrees. And it formalised a governance structure under a Board of Governors with government representation.
It did not change the entrance exam, the case-method classroom, the placement process, or the alumni network. A 2017 IIM PGP and a 2019 IIM MBA are the same programme in different legal wrapping. That is why the pre-2018 PGDM is still treated as equivalent to an MBA in every ordinary professional context.
Frequently asked
Did IIMs award an MBA before the 2017 IIM Act?
No. Before the IIM Act came into force in January 2018, IIMs were registered societies and could not grant degrees. Their flagship programme awarded a Post Graduate Diploma in Management (PGDM), sometimes described as a Masters Diploma in Business Administration, not an MBA.
What is the Societies Registration Act, 1860?
It is the Indian law under which non-profit societies — including many educational institutions — register. A society can run programmes and issue its own diplomas or certificates, but it cannot award degrees. Only a university, deemed university, or institution empowered by an Act of Parliament can grant degrees in India.
When did IIMs start giving MBA degrees?
The Indian Institutes of Management Act, 2017 was passed by Parliament and came into force on 31 January 2018. It declared IIMs Institutions of National Importance and gave them the power to award degrees, including the MBA and PhD.
Is a PGDM from an old IIM less valuable than an MBA?
For almost every practical purpose, no. The PGDM from an IIM carried the same admissions rigour, curriculum, faculty, placements and alumni network as the current MBA. The word changed in 2018; the institute and its reputation did not.
Do IICT and IIPM award degrees or diplomas?
IICT and IIPM are autonomous institutes registered under the Societies Registration Act, 1860, like IIMs were before 2018. They offer MBA-level programmes, PG Diplomas, Executive MBAs and Diploma programmes in their own name. The award is an institute diploma or certificate, not a university degree, and it is judged by the institute's standing rather than by the word alone.
Why do some autonomous institutes still use 'MBA' in their programme names?
Many autonomous institutes describe their flagship programme as an MBA programme because that is the qualification employers and learners understand. The certificate itself is issued by the society and is a diploma-level credential under Indian law. The practical value depends on the institute's recognition, curriculum, alumni and placement support.