INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE

Executive Post Graduate Programme in Management

Course Outline

Course Code and Course Title EPGP-203 Economic Environment (EE)

Course type Core/Elective
Pre-requisites (if any)
Course Credit Two
Total no. of sessions 8 Sessions
Session Duration 2 Hours 30 Minutes
Quarter Two
Year and Batch 2021/EPGP-13
Sections (if any) Section C

Instructor Prof. Ashok Thomas

Contact Details ashok.thomas@iimk.ac.in
Office Faculty Block – 3; Faculty Block – 1
Consultation Hours With appointment (anytime over email)

Introduction
This course is aimed at studying the economic environment of an economy from a macro
perspective with practical application in the Indian context. A study of economic
environment helps a business manager to evaluate the impact of the changing business
environment on decision making. The economic reforms introduced in India have brought
about a sea change in the economic environment of the Indian economy. Numerous policy
changes are being introduced both at the macro and at the micro level at frequent intervals.
Due to this, unlike in the past, the economic environment has been fast changing. Hence,
understanding the implications of the changing economic policies and environment become
imperative for the practicing managers and business leaders.

Learning Outcomes/Course Objectives

The basic objectives of this course are
(a) To understand the working of an economy, identify the major macroeconomic goals and
problems
(b) To enable the students to understand the functioning of India’s economic environment,
understand the policies followed by the central bank and governments to achieve the goals
and solve the problems
(c) To evaluate the impact of government policies on the nation’s economy, society and
business.

Textbooks and Learning Materials

Text Book(s)

Macroeconomics 5th Edition, Paul Krugman and Robin Wells, Springer Nature

Reference Book(s)

In Service of the Republic: The Art and Science of Economic Policy by Vijay Kelkar and
Ajay Shah, Penguin Allen Lane
Macroeconomic Policy Environment: An Analytical Guide for Managers by Shyamal Roy,
Mc Graw Hill

Additional Reading(s)

Will be provided during classes

Technology and Software (if any)

Other Resources (Journals, Internet Websites) (if any)

Pedagogy/Learning Process

Lectures, discussions and project work

Evaluation Components/Assessment of Student Learning

Assessment Tool Percentage Description

These exam and quizzes will assess the depth
END-TERM 50% and breadth of students’ understanding of key
EXAMINATION concepts and issues covered in the course. The
project evaluates the ability to integrate
PROJECT 30% available information to critically analyze an
QUIZ 20% important issue.

Session Plan

Session Module Topic Chapter No. / Reading

material / Cases
1 Introduction to India’s Economic Environment: Past, Handouts
Economic Present and Emerging Challenges
Environment
2 National Measurement of GDP, Real Versus 7
Income Nominal GDP, Limitations of GDP
Accounting
3 Tracking the CPI, WPI, Purchasing Power Parity, 8-9
Cost of Living Unemployment
4 Fiscal Policy Aggregate Expenditure, Aggregate 11-13
Demand and Aggregate Supply,
Fiscal Policy in India
5 Money and Money, Monetary and Financial 15
Financial System, Commercial Banks
Services
6 Monetary RBI, Monetary Policy Transmission, 16
Policy Tackling Inflation
7 International Trade and Balance of Payments, 18
Trade, Capital Fixed and Flexible Exchange Rate
Flows & Systems, Macroeconomic Policy and
Exchange Rate Exchange Rate
8 Sectoral Issues India’s Agriculture, Industry, Handouts
in Indian Services Sectors; Future Economic
Economy Challenges

Additional Instructions (if any)