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I know you as student still confused about GMAT and CAT, which is better option for you! Like in the US and Europe, taking an entrance exam is usually a requirement for MBA admission to business schools in India. In order for any of the best Indian b-schools to consider your application, they will need to know your test results.
It's important to decide between the CAT and GMAT if you want to pursue an MBA. It's important to decide between the CAT and GMAT if you want to pursue an MBA. Both are significant, yet they differ in terms of their breadth, acceptance, and syllabi. The primary distinction between the CAT and GMAT is that the former is mostly accepted by business schools in India, whereas the latter is a worldwide recognized exam that is accepted by over 7,000 MBA programs across 110 countries. To assist you in making an informed choice, we have discussed everything there is to know about GMAT vs. CAT in this blog.
The leading business schools in India accept results from two well-liked MBA entrance exams. These are the Common Admission Test (CAT), administered by the Indian Institute of Management, and the Graduate Management Admission Test (GMAT), administered by the Graduate Management Admission Council. What, though, are the main distinctions? Everything you need to know about GMAT vs. CAT before choosing one. Here's a comprehensive comparison of the GMAT (Graduate Management Admission Test) and the CAT (Common Admission Test):
Aspect | GMAT (Graduate Management Admission Test) | CAT (Common Admission Test) |
Purpose | Admission to MBA programs globally | Admission to MBA programs in India |
Administered By | Graduate Management Admission Council (GMAC) | Indian Institutes of Management (IIMs) and other B-schools |
Test Duration | 3 hours 7 minutes | 2 hours 45 minutes |
Frequency | Offered year-round at authorized test centers | Annually, typically in November |
Test Format | Computer Adaptive Test (CAT) with sections on Verbal, Quantitative, Integrated Reasoning, and Analytical Writing | Computer-Based Test (CBT) with sections on Verbal Ability and Reading Comprehension, Data Interpretation and Logical Reasoning, and Quantitative Ability |
Sections | 1. Analytical Writing Assessment (AWA) | 1. Verbal Ability and Reading Comprehension (VARC) |
2. Integrated Reasoning (IR) | 2. Data Interpretation and Logical Reasoning (DILR) | |
3. Quantitative Section (Quant) | 3. Quantitative Ability (QA) | |
4. Verbal Section (Verbal) | ||
Scoring Range | Total: 200-800; Individual Sections: 0-60 (IR), 0-6 (AWA) | Total: 0-300; Individual Sections: Varies |
Scoring Method | Scores for each section are combined to produce a total score | Scores are calculated based on the overall performance and sectional scores |
Eligibility | No specific eligibility criteria; open to all candidates | Typically requires a bachelor’s degree; specific eligibility varies by institute |
Cost | Approximately $275 USD | Varies; generally around INR 2,000 - INR 2,500 |
Preparation | GMAT preparation resources are widely available; test prep companies offer specific programs | Preparation resources are available; many coaching centers focus on CAT-specific strategies |
Test Centers | Global; available in many countries | Primarily in India; some international centers |
Validity | 5 years | 1 year |
Acceptability | Accepted by many top business schools worldwide | Accepted by most businesses |
One common distinction between the GMAT and CAT is the requirements for eligibility. Let's examine the prerequisites for each of these tests down below:
Aspect | GMAT (Graduate Management Admission Test) | CAT (Common Admission Test) |
General Eligibility | Open to all individuals who meet the educational qualifications required by the business schools they are applying to. | Generally requires a bachelor's degree from a recognized university. |
Educational Qualification | There is no specific educational qualification required by GMAC; however, business schools have their own requirements. Typically, a bachelor's degree is needed. | A bachelor's degree (or equivalent) with a minimum percentage as specified by individual IIMs and other participating institutions. |
Work Experience | Not mandatory; some business schools prefer or require work experience. | Not mandatory for all institutions; however, many IIMs and other top business schools prefer candidates with work experience. |
Age Limit | No specific age limit. | No specific age limit, though candidates typically are between 22-28 years old. |
Number of Attempts | No limit on the number of attempts; however, GMAT scores are valid for 5 years. | No limit on the number of attempts, but the CAT score is valid for one year. |
Nationality | Open to all nationalities; GMAT is a global test. | Primarily for Indian citizens; some international candidates may also apply. |
Language | Test is conducted in English. | Test is conducted in English. |
Pre-requisites | No specific pre-requisites; however, familiarity with test content is recommended. | No specific pre-requisites beyond educational qualifications; preparation for the test is recommended. |
The Analytical Writing Assessment, Verbal Reasoning, Quantitative Reasoning, and Integrated Reasoning sections comprise the GMAT exam. The components of the CAT include Quantitative Aptitude, Data Interpretation and Logical Reasoning, and Verbal Ability and Reading Comprehension. Here’s a detailed comparison of the syllabus and exam pattern for the CAT and GMAT:
Aspect | GMAT (Graduate Management Admission Test) | CAT (Common Admission Test) |
Exam Duration | 3 hours 7 minutes | 2 hours 45 minutes |
Exam Pattern | Computer Adaptive Test (CAT) | Computer-Based Test (CBT) |
Sections | 1. Analytical Writing Assessment (AWA) | 1. Verbal Ability and Reading Comprehension (VARC) |
2. Integrated Reasoning (IR) | 2. Data Interpretation and Logical Reasoning (DILR) | |
3. Quantitative Section (Quant) | 3. Quantitative Ability (QA) | |
4. Verbal Section (Verbal) | ||
Analytical Writing Assessment (AWA) | One essay (30 minutes): Analysis of an argument | Not included |
Integrated Reasoning (IR) | 12 questions (30 minutes): Multi-source reasoning, graphics interpretation, two-part analysis, and table analysis | Not included |
Quantitative Section (Quant) | 31 questions (62 minutes): Problem-solving and data sufficiency | 34 questions (70 minutes): Arithmetic, Algebra, Geometry, and Number Systems |
Verbal Section (Verbal) | 36 questions (65 minutes): Reading comprehension, critical reasoning, and sentence correction | 34 questions (70 minutes): Reading Comprehension, Verbal Ability |
Scoring Range | Total Score: 200-800; Individual Sections: 0-60 (IR), 0-6 (AWA) | Total Score: 0-300; Individual Sections: Varies |
Scoring Method | Scores for each section are combined to produce a total score; AWA and IR are scored separately | Scores are calculated based on the overall performance and sectional scores |
Question Types | - Multiple Choice Questions (MCQs) | - Multiple Choice Questions (MCQs) |
- Data Sufficiency | - Data Interpretation | |
- Integrated Reasoning (graph-based, table-based) | - Logical Reasoning | |
Preparation Focus | Emphasizes critical thinking, reasoning, and analysis skills; GMAT-specific practice resources are widely available | Focuses on quantitative aptitude, logical reasoning, and verbal ability; preparation often involves practice tests and coaching |
The cost structure is the next most crucial GMAT or CAT factor. The cost breakdowns for the CAT and GMAT tests are shown below.
Aspect | GMAT (Graduate Management Admission Test) | CAT (Common Admission Test) |
Registration Fee | Approximately $275 USD (varies by location) | Generally around INR 2,000 - INR 2,500 (varies by year) |
Rescheduling Fee | Approximately $50 USD (varies by location) | Not applicable; typically no rescheduling option |
Additional Score Reports | Approximately $35 USD per report (sent to each additional school) | Included in the exam fee; additional charges may apply for extra score reports |
Preparation Material | GMAT Official Prep books and online resources range from $30-$100 USD | Preparation materials range from INR 1,000 to INR 5,000 or more depending on the source |
Score Validity Period | 5 years | 1 year |
Test Center Fees | Included in the registration fee | Included in the registration fee |
Late Registration Fee | Approximately $150 USD (varies by location) | Not applicable; late registration is generally not allowed |
Validity Period: 5 years
Score Reporting: Scores can be reported to schools within the validity period; schools typically consider scores from the last 5 years.
Score Reporting Limits: Candidates can choose to send scores from specific test dates to schools. They can send their most recent scores or any score within the 5-year validity period.
Score Expiry: After 5 years, GMAT scores expire and are no longer reportable to schools.
Validity Period: 1 year
Score Reporting: Scores are valid only for the year in which the test was taken. For instance, CAT 2025 scores are valid for admissions in the academic year 2025-2026.
Score Reporting Limits: Scores are reported to participating institutes for the year of the test. They are not typically used for admissions in subsequent years.
Score Expiry: After 1 year, CAT scores are no longer valid and cannot be used for admissions.
The CAT is more popular than the GMAT when it comes to difficulty because it is more affordable and available at more Indian institutes. Reaching high percentiles becomes more difficult due to the increased competition among top scorers brought about by this popularity. In comparison, just 13% of GMAT test-takers are Indian, despite the exam having a global presence with almost 250,000 participants. CAT, on the other hand, receives over 200,000 applications from across India, suggesting that it is a more challenging exam than the GMAT.
Graduates of the Global MBA program and IIM programs earn typical incomes that vary depending on region, ranking, and reputation. Here’s a table comparing the average salaries for IIM graduates and global MBA program graduates:
Aspect | IIM Graduates (India) | Global MBA Graduates |
Average Salary (Domestic) | ₹20-25 lakhs per annum (approx. $24,000 - $30,000 USD) | $70,000 - $100,000 USD per annum |
Top IIMs Average Salary | ₹25-30 lakhs per annum (approx. $30,000 - $36,000 USD) | $120,000 - $150,000 USD per annum |
Highest Salary | Can exceed ₹50 lakhs per annum (approx. $60,000 USD) | Can exceed $200,000 USD per annum |
Salary Trends | Varies by industry; consulting and investment banking offer higher salaries | Significant variation based on geography, industry, and role; U.S. and European programs generally offer higher salaries |
Geographic Impact | Primarily domestic job market | Global job market; salaries are often higher in the U.S. and Europe |
The difficulty of the GMAT compared to the CAT can vary based on individual strengths and preparation. Generally, the GMAT is considered more focused on analytical and critical thinking skills, with a heavy emphasis on integrated reasoning and data sufficiency. Its computer-adaptive format adjusts the difficulty of questions based on the test-taker's performance, which can make it challenging for some candidates.
The GMAT also includes a section on analytical writing, which is less prominent in the CAT. On the other hand, the CAT is known for its rigorous quantitative and verbal sections, testing a wide range of topics in mathematics and language comprehension. It features a more traditional test format with a fixed difficulty level across questions, which can be challenging for those who struggle with time management or specific sections. Overall, whether the GMAT or CAT is easier depends on the candidate's aptitude and preparation.
Choosing between the CAT and GMAT depends on various factors related to your career goals, educational background, and personal preferences. Here are some key considerations to help you decide:
CAT: Primarily used for admission to MBA programs in India, including top institutions like the IIMs. If you aim to study in India, CAT is the more relevant choice.
GMAT: Accepted by business schools globally, including many prestigious programs in the U.S., Europe, and other regions. If you are considering an international MBA program, the GMAT is generally required.
CAT: Generally requires a bachelor’s degree from a recognized university. Eligibility criteria are specific to Indian institutes, but many institutions accept students with diverse academic backgrounds.
GMAT: Also requires a bachelor’s degree, but there are no specific eligibility criteria beyond this. It is more flexible in terms of academic background.
CAT: Focuses on quantitative ability, data interpretation, logical reasoning, and verbal ability. It’s a traditional test format with a fixed difficulty level for all candidates.
GMAT: Includes sections on analytical writing, integrated reasoning, quantitative reasoning, and verbal reasoning. The computer-adaptive format adjusts the difficulty based on your performance.
CAT: Scores are valid for one year and are primarily accepted by Indian business schools.
GMAT: Scores are valid for five years and are accepted by business schools worldwide, giving you more flexibility in terms of application timing and geographic location.
CAT: Preparation materials and coaching are widely available in India, focusing on the specific content and format of the exam.
GMAT: Preparation resources are globally available, with a focus on analytical and reasoning skills, and may include a broader range of study materials and courses.
CAT: Typically has a lower registration fee (INR 2,000 - INR 2,500) and is conducted once a year, usually in November.
GMAT: Has a higher registration fee (approximately $275 USD) and offers more frequent testing opportunities throughout the year.
Consider where you see yourself in the long term. If you plan to work or study abroad, the GMAT might be a better choice. If you are focused on pursuing education and career opportunities in India, the CAT is likely more appropriate.
By evaluating these factors in relation to your personal and professional goals, you can make an informed decision about whether the CAT or GMAT is the right test for you.
Many people want to pursue an MBA from a reputable university, but they are confused about whether entrance exam—the CAT or the GMAT—is better. Selecting between the two is difficult, but it gets simpler if you understand what is available and how the CAT and GMAT differ from one other. The distinction between the CAT and GMAT is in how each assesses a candidate's ability.
The majority of international programs in the USA, Europe, Asia Pacific, and Australia generally recognize the GMAT as a prerequisite. CAT scores are accepted by more than 160 non-IIM management institutes in addition to IIMs. When choosing between the CAT and GMAT, you also need to take into account potential opportunity costs and investment costs in addition to location. You can also get in touch with our WayUp Abroad Counselors for more help; we hope you make the right decision!
1. What are the main differences between GMAT and CAT?
The GMAT (Graduate Management Admission Test) and CAT (Common Admission Test) differ primarily in their scope and purpose. The GMAT is a global test designed for admission to business schools around the world and features sections on analytical writing, integrated reasoning, quantitative reasoning, and verbal reasoning. Its computer-adaptive format adjusts the difficulty of questions based on the test-taker's performance. The CAT, on the other hand, is specifically used for MBA admissions in India and evaluates candidates on quantitative ability, data interpretation, logical reasoning, and verbal ability. The CAT is a fixed-format test with set difficulty levels across questions, and it is typically conducted once a year.
2. Which test is better for studying abroad?
For those planning to study abroad, the GMAT is generally the better choice. It is widely accepted by international business schools, including many prestigious programs in the U.S., Europe, and other regions. The GMAT’s global recognition and its focus on a range of skills that are relevant to international business programs make it the preferred test for students aiming to pursue an MBA outside of India. The CAT is primarily intended for admission to Indian business schools and is not usually accepted by international institutions.
3. What are the eligibility criteria for GMAT and CAT?
Both the GMAT and CAT require candidates to have a bachelor’s degree from a recognized university. However, the GMAT has more flexible eligibility criteria and does not impose additional requirements beyond the degree. It is open to candidates from various educational backgrounds and professional experiences. The CAT also requires a bachelor’s degree, but eligibility can vary slightly depending on the participating institutions in India. While work experience is not mandatory for the CAT, many Indian business schools prefer candidates with relevant experience.
4. How long are the scores valid?
The validity period for scores is a significant difference between the two tests. GMAT scores are valid for five years, allowing candidates to apply to business schools at different times within that period. This extended validity provides flexibility for planning and application timing. In contrast, CAT scores are valid for just one year, aligning with the academic year for which the test is taken. This means CAT scores are typically used for admissions in the same academic year and are not applicable for future years.
5. What is the cost of taking the tests?
The cost of taking the GMAT and CAT varies significantly. The GMAT has a higher registration fee, approximately $275 USD, with additional costs for rescheduling and sending extra score reports. This reflects the global nature of the test and the additional services provided. On the other hand, the CAT is more affordable, with a registration fee generally around INR 2,000 - INR 2,500. The CAT's lower cost reflects its focus on the Indian market, and there are typically no extra fees for rescheduling or sending scores.
In conclusion, choosing between the GMAT and CAT largely depends on your educational and career goals. The GMAT, with its global recognition and focus on analytical and reasoning skills, is ideal for those aiming for international MBA programs. Its flexibility in score validity and the opportunity to test year-round make it a convenient choice for students targeting global business schools. Conversely, the CAT is specifically tailored for admission to prestigious Indian institutions, with a focus on quantitative ability and verbal skills suited to the Indian education system. Its affordability and local relevance make it the go-to test for those pursuing an MBA within India.
Ultimately, your choice should align with your career aspirations and geographical preferences. If you need guidance on selecting the right test or assistance with your MBA application process, WayUp Abroad Consultants are here to help. Contact us at +91 78775 12818 or email us at inquiry@wayupabroad.com for expert advice and support tailored to your needs.