There are definitely more advantages to a PG degree than a diploma, so that would be my choice. It’s the only way to keep up with a fast-paced, competitive world.
Personally, I’d prefer a PG degree after graduation. I feel it gives more depth, academic recognition, and better opportunities in the long run — especially if you’re planning to work in hospitals, research, or want to appear for government exams. Diplomas are good too, but I’d go for a full degree.
This initiative would have been taken mostly because of the scarcity of the eligible faculties in the field. As student number is increasing constantly, the number of faculties per student is very less. Diploma mostly is like an add-on to the degree. The main degrees are considered everywhere with credibility as they are full-time courses and covers a complete and wide curriculum; whereas, diploma gives you an idea about a field and this is mostly helpful when you want to showcase something additional related to your field. These are mostly like advanced form of short-term certifications.