Impact of NEP's New Policy on GMAT/GRE Test-Takers

Updated on 9th July 2025 | 01:00 PM

Understanding the impact of the new National Education Policy (NEP) – allowing undergraduate students in India to choose the duration of their degree from 1 to 4 years – can help them adopt a more focused approach to GMAT/GRE preparation and B-school admissions. Our faculty for the GMAT exam and GRE exams have closely observed how the addition of a fourth year is actually more beneficial than early exit for undergraduate students aiming for business graduate programmes right after graduation. That final year leans more towards technical depth, pushing students to prepare as they would for any competitive exam.

Impact of NEP's New Policy On GMAT/GRE Test-Takers

But every coin has two sides. This article explores how NEP 2020's 4-Year UG Programme could strengthen your MBA plans, and where it might complicate them.

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Overview of 4-Year UG Programme

With the 4-year undergraduate degree model under NEP 2020, India's higher education is stepping into a transformative phase. The model, rolled out via the Undergraduate Curriculum Framework (UGCF) 2022, offers flexibility. After completing three years, students can choose to exit with a degree or continue into a fourth year designed to enhance academic depth. That extra year, however, is a launchpad for advanced learning and research.

Students continuing into the fourth year are offered a range of experiential academic pathways, including independent research, dissertations, and entrepreneurial assignments. Those in management-related disciplines may undertake business planning and project development exercises.

What Does This Mean For You?

  • Pursue a research-focused fourth year to strengthen academic credentials.
  • Qualify for international B-school programmes with a 16-year requirement.
  • Become eligible for select one-year postgraduate programmes.
NEPs 4 Year UG Programme

Understanding All Exit Options: 1, 2, 3 & 4 Years

At the core of NEP’s revised undergraduate framework, is a multi-exit system that prioritizes flexibility, student autonomy, and relevance. Let's understand what each year offers and who it’s best suited for.

Year 1: Certificate

🎓 Ideal for those who want to take a break or start working early with basic knowledge.

After the successful completion of the first year, students can earn a Certificate in their chosen discipline.

Year 2: Diploma

🎓 Ideal for those seeking targeted job roles or vocational pathways.

At the two-year mark, students qualify for a Diploma. This level builds on first-year learning with more subject focus and practical skills.

Year 3: Bachelor’s

🎓 Ideal for those looking to deepen knowledge in a chosen discipline and graduate through the traditional 3-year route.

Completing three years gives you a full Bachelor’s degree, which remains a valid and widely accepted qualification across most career and academic paths in India and abroad.

Year 4: Bachelor’s Degree with Research

🎓 Ideal for those looking to build academic depth through research or fieldwork.

At this stage, students can take up research, a start-up project, or advanced fieldwork.

Why Does This Model Matter?


So Should GMAT/GRE Aspirants Stay For The Fourth Year? 🤔

There's no one-size-fits-all answer. But here's a comparison by our experts:

Global B-Schools Are Smiling At The 4-Year Model Because It…

But Not Every Student’s Taking the Same Route Because It…

Meets global 16-year education requirement.

Delays GMAT prep by a year.

Aligns Indian degrees with international norms.

Limits opportunities to build early work experience – something B-schools may ask for.

Adds depth through research-based projects.

Adds to overall education expenses.

Strengthens academic credibility.

Leads to confusion on exit vs. continuation.

Gives extra time for GMAT/GRE prep.

Has mixed implementation across colleges.

Gives time for internships or leadership roles.

Is not yet fully adopted by all universities.

Helps create a mature MBA profile.

Is not mandatory for Indian MBAs.

Indicates your readiness for challenges.

May not work for certain individual goals.

Above, we have provided a comparative overview of why the fourth year is likely to be favored by international B-schools, alongside the reasons it may not align with every student's circumstances. We'll now explore the key advantages and challenges associated with the fourth year, one by one.


Strategic Benefits of Choosing the Fourth Year for GMAT/GRE Aspirants

You Get One Extra Year to Prepare for GMAT/GRE

Preparing for the GMAT or GRE while managing college coursework can be challenging. The fourth year gives you valuable time to plan and pace your preparation. Without rushing, you can strengthen weaker sections and build test stamina. This extra year helps reduce pressure and improve scores.

You Get One Extra Year for Internships or Leadership Roles

Opting for the fourth year gives you a clear opportunity to take on internships or leadership positions. These experiencesexpose you to real-world business scenarios that improve how you approach GMAT/GRE reasoning questions. It also develops your decision-making and communication skills – essential for B-school success.

You Get 16-Year Education and 4-Year Bachelor’s Degree

Many top universities across the US, Canada, and Europe prefer applicants who have completed 16 years of formal education, often fulfilled through a 4-year undergraduate degree. This academic structure aligns better with international systems. Including this in your profile reflects your readiness for a global graduate program.

You Will Be Able to Show Research and Projects

With the fourth year, students can explore independent projects, participate in faculty-led research, or even publish their work. This gives your application a serious academic edge. By the time you graduate, you’ll already have meaningful academic work to showcase, demonstrating a proactive mindset and depth of thought that global B-schools look for in applicants.

Build a Competitive Edge for Deferred MBA Programs

Deferred MBA programs look for maturity, initiative, and leadership potential. A fourth year allows you to sharpen your academic profile, explore meaningful extracurriculars, and gain more clarity in your career vision.

Fallback Time for Reattempting GMAT/GRE If Needed

If you don’t achieve your target GMAT/GRE score on the first attempt, having a fourth year gives you the flexibility to retake the exam without disrupting your application cycle. It serves as a practical bufferand ultimately improves your chances of securing a place in your dream program.

Other Benefits:


Potential Drawbacks of Choosing the Fourth Year for GMAT/GRE Aspirants

Delayed MBA Planning Due to Extended UG Timeline

As the 4-year UG model becomes optional, students aiming for international MBAs may delay GMAT preparation and application timelines to complete the full program. This shift can lead to a temporary dip in early-stage planning, especially among students who would have otherwise started building their profile in the third year itself.

Inconsistent Implementation Across Colleges

The rollout of the 4-year UG model is uneven across universities, especially in Tier 2 and Tier 3 institutions. Some colleges lack clarity on the structure and purpose of the fourth year. As a result, students may be unsure whether continuing is beneficial, which in turn creates uncertainty around GMAT timing and long-term planning.

Not Mandatory for Indian B-Schools

Top Indian B-schools do not require a 4-year undergraduate degree. Many successful applicants complete their MBA journeys with a 3-year programme and early work experience.

Shift Toward Indian Master's or Research Programs

The NEP makes it easier for students to continue into Indian master’s or research programs. Because of this, some students may choose to focus on exams like CUET-PG, GATE, or UGC-NET instead of planning for an MBA abroad, leading to fewer students preparing for exams like the GMAT or the GRE.

👉 The promising side: Over the next 3 years and beyond, we can expect a rise in GMAT/GRE-takers as the 4-year degree gains wider acceptance and students feel more prepared to apply abroad.

Confusion During Transition Periods

With both 3-year and 4-year exit options available, many students are caught between choices. The lack of standardized guidance during this transitional phase can create indecision around when to start test prep, apply to B-schools, or even finalize career goals.

Entering Industry Gets Delayed

Staying for the fourth year means entering the job market later. This delay may not work well for students who want to start gaining work experience early, especially when some MBA programs expect 2-3 years of it. It can also slow down your career progress and financial independence.

Extra Costs Issues

An extra year in college means more fees and living costs. For students on a tight budget, this added expense can make them delay or skip GMAT/GRE prep and applications, as these require both time and money to plan properly.

Risk of Wasting a Year Without Clear Goals

If you don’t have a clear purpose, like doing research, internships, or picking a specialization, the fourth year might not add much value. Without planning, it could seem like a wasted year and might even weaken your MBA application by showing a lack of direction.


Advice for Students Choosing 3-Year Programme

If you’ve already chosen or are currently pursuing a 3-year undergraduate programme, you can still build a strong B-school profile. While you may not have the optional fourth year, you can stay competitive by using your time well and focusing on the right opportunities.

Here are a few key focus areas:

Gain Relevant Work Experience: Many top B-schools value 2–3 years of work experience. Start building that early through internships, part-time roles, or full-time jobs after graduation

Show Leadership and Initiative: Join college clubs, student groups, or volunteer work. Showing leadership is just as important as your grades.

Aim for a Strong GMAT/GRE Score: A competitive test score can make your application stand out, especially if you're from a 3-year program.

Pursue Certifications or Projects: Take online courses or work on projects in areas like business or analytics. These add value to your profile.


Key Takeaways


Summary & Action Points

The 4-year UG model opens new doors for GMAT/GRE aspirants aiming for top global B-schools. While not essential for everyone, it benefits students who use it with purpose.

Now’s the right time to decide your next step.

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