IGNOU Act (1985, p.14): The First Schedule, The Objects of The University states:

“ 1. The University shall endeavour through education, research, training and extension to play a positive role in the development of the country, and, based on the rich heritage of the country, to promote and advance the culture of the people of India and its human resources. Towards this end, it shall:

…d)provide an innovative system of university level education, flexible and open, in regard to methods and pace of learning, combination of courses, eligibility for enrolment, age of entry, conduct of examination and operation of the programmes with a view to promote learning and encourage excellence in new fields of knowledge;…”

Flexibility being a defining feature of the teaching-learning arrangements in IGNOU, the University has followed a modular approach to Programme development for many of the degree level programmes. Modularity has been implemented in two ways. In some Programmes, exit options have been provided whereby students not wanting to complete the entire programme can make an exit after completion of a defined number of courses and get a Diploma/PG Diploma. This also happens in cases where for some reason a student is not able to complete all the courses of a programme and wants a pre-exit. S/he can complete the specified number of courses and will be awarded a certificate commensurate to the number of credits he/she has completed. For example, students enrolled in Master of Computer Applications (MCA) Programme can make an exit after completing the courses of first two semesters and get a PG Diploma in Computer Applications (PGDCA). Similarly, the students of MBA programme can seek pre-exit by receiving a specialization Diploma in a particular stream if they do not want to continue with MBA programme. This helps the students in meeting their immediate professional requirement.

In the other approach to modularity, students completing a Diploma/PG Diploma Programme are allowed lateral entry in a degree programme. For example, students completing PG Diploma in International Business Operations (PGDIBO) are allowed lateral entry in the second year of Master of Commerce (M.Com) Programme. This helps the students in upgrading their knowledge/skill as per their requirement and convenience. Under this provision, the students who have competed the PG Diploma in International Business Operations (PGDIO) or PG Diploma in Distance Education (PGDDE) programme are given offer to join the M.Com or Master of Arts (Distance Education) programme in the immediate next session that saves their time in applying afresh and wait for finalization of admission for that particular Admission cycle