Written by Shubham Dodeja
Securing admission to a prestigious business school, whether in India or abroad, hinges significantly on your exam scores. The GMAT, administered by the Graduate Management Admission Council, and the CAT, conducted by the Indian Institutes of Management, are two prominent entrance exams. While both tests are respected in the business education sphere, understanding the unique benefits of the GMAT can significantly impact your career trajectory and educational options. Lets explore both the exams and see which one makes more sense for you.
Key Differences (GMAT vs CAT) :
FEATURES | GMAT | CAT |
Format | Computer-based test | Computer-based test |
Skills Tested | Quantitative Reasoning, Verbal Reasoning, Integrated Reasoning | Verbal Ability and Reading Comprehension (VARC), Data Interpretation and Logical Reasoning (DILR), Quantitative Aptitude (QA) |
No. of Questions | 63 | 66 |
Test Length | 2 hrs 15 mins | 2 hours |
Length of Score Validity | 5 years | 1 year |
No. of times it can be taken annually | 5 annually, 8 in total | 1 |
Acceptability of Exam | Accepted by over 2,300 business schools worldwide, including institutions in India, across more than 110 countries. | Accepted by top business schools in India, including IIMs. |
Recommended Preparation Time | 3-6 months | 1 year |
When can the exam be taken? | Anytime of the year. | Conducted once a year on a specific date. (in November) |
Mode of Exam | Test center or online at home | Test center |
1. Question Format & Scoring
I. Adaptive Question Format:
GMAT: The GMAT uses a computer-adaptive testing format. This means the difficulty level of each question adapts based on your performance on previous ones. The exam pulls questions from a vast pool, and the specific questions you encounter are determined by your answers.
CAT: Provides the same set of questions for all test-takers, with no adaptation based on performance.
II. Question Attempt Strategy:
GMAT: It is advisable to attempt all questions due to the adaptive nature of the test.
CAT: Candidates often adopt a selective approach, answering questions they are confident about to maximize their score. You may also achieve 99 percentile even after answering 50% of the questions correctly.
III. Scoring System:
GMAT: Assigns different relative weightage to each question based on difficulty and performance. Getting easier question incorrect will drag your scores down and vice versa if you get a difficult question correct, it will take your score up.
CAT: Uses a uniform scoring system with +3 points for correct answers and -1 point for incorrect answers, irrespective of the difficulty of the question.
2. GMAT vs CAT Sectional Differences Both the exams consist of Three Sections, in terms of format the major difference is that in GMAT you can attempt section in the order of your preference, meanwhile in the CAT the order is fixed. Further difference in syllabus is described below:
I. Verbal:
Since the GMAT transitioned to the Focus Edition, the verbal sections of both the GMAT and CAT have become quite similar, primarily testing reading comprehension, observation and interpretation skills. The key difference lies in question format: GMAT focuses on Reading Comprehension and Critical Reasoning, while CAT predominantly features Reading Comprehension questions with a strong emphasis on critical reasoning and argument analysis. Although CAT includes some additional Verbal Ability questions, the core competency assessed by both exams remains the same—understanding and analyzing written text.
II. Quant:
GMAT: It focuses a lot on the fundamental understanding of mainly two topics, which is Arithmetic and Algebra. These topics includes concepts from Set Theory, P&C and Probability, Ratio & Percentage, Time Speed Distance, Time & Work, Mixture & Averages, Inequality, Absolute Value, Number System, Statistics, Equations etc. CAT: The quant section of CAT is quite exhaustive, the depth of Algebra in particular is a lot more, as it also has Logarithm , Higher Order Equations, and a lot more depth of functions in its syllabus. Further CAT quant also has geometery. Hence the following Venn Diagram perfectly depicts the difference between GMAT and CAT's quant section.
III. Data Insights vs Data Interpretation & Logical Reasoning
GMAT: A number of questions in GMAT under this sections is called Data Sufficiency, about 90% of these questions are just quantitative questions which are asked in a different way. The difference is that you get two additional piece of information and you have to see if you can answer the problems statement using either of the two statement or both.
Further in Data & Graphs questions, you are tested on your observation and inferences of the tables and graphs in the questions. Finally, there is also two additional types of questions in Data insights, namely Two part analysis and Multi-Source Reasoning (Case Study).
CAT: In comparison in CAT, there is a set of 5 question of logical puzzles. The puzzle can be different in nature, ranging from Sports & Games, Arrangement etc. In terms of the Data and Graphs, the questions are much more calculative rather than observational.
3. Preparation Time & Attempts
I. Preparation: GMAT: Typically requires 3-6 months of preparation.
CAT: Often takes around 1 year, and up to 2 years in some cases. II. Attempts:
GMAT: Can attempt anytime after scheduling the same online. Can attempt this exam up to 5 times in a year, with a cool-off period of a few weeks. A person can give up to 8 attempts across their lifetime.
CAT: Can exam is organised once every year around November.
4. College Comparison:
I. Freshers (No Experience):
GMAT: Accepted by over 2,300 business schools in more than 110 countries. In India specifically, ISB Young Leadership Program (Deferred Admission Program), IMT, Goa Institute of Management, Great Lakes Institute of Management, FORE School of Management, Lal Bahadur Shastri Institute of Management and a few other Private MBA colleges. CAT: All the IIM's and majority of Private colleges accept CAT score for their 2 year MBA program.
II. Experienced Folks:
GMAT: Accepted by over 2,300 business schools in more than 110 countries (Like Havard, Stanford, MIT Sloan, Kellogs, Wharton, INSEAD etc.). In India specifically, All the IIM's 1 Year Residential Program (IIM A, B, C, L, K etc.), ISB, SPJIMR, XLRI BM and a few others.
CAT: All the IIM's and majority of Private colleges accept CAT score for their 2 year MBA program.
5. Competitiveness and Reporting
I. Competitive Landscape
GMAT: Taken by over 200,000 students annually.
CAT: Attracts a higher number of test-takers, with around 330,000 students in 2023, making it a highly competitive exam.
II. Score Reporting
GMAT: Unofficial scores are available immediately after the exam. Official Score Report provided within 7 to 20 business days.
CAT: Official Score Report can take more than a month to become available after the exam.
Conclusion:
Ultimately, the most suitable exam—CAT or GMAT—depends heavily on your individual circumstances. Experienced professionals with at least three to five years of work experience generally find the GMAT more advantageous. Its less comprehensive syllabus allows for more efficient preparation while employed, and it opens doors to a wider range of programs both domestically and internationally.
Fresh graduates aiming to stay in India should prioritize the CAT. However, the GMAT can also be a valuable option due to overlapping content and the opportunity to explore programs beyond traditional CAT colleges, such as ISB's YLP. For those considering international MBA programs, deferred admission options offered by prestigious institutions like Harvard, Stanford, and Chicago Booth are worth exploring.
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