UNIVERSITY OF HYDERABAD

FOUNDATION COURSES
COURSE STRUCTURE AND SYLLABUS

SCHOOL OF ECONOMICS
(2020)
The School of Economics offers two foundation courses for Post Graduate and Integrated Masters
programmes of the University. These are offered in I/II semesters of the programmes and are common
to all such programmes.

FOUNDATION COURSES:

FN 131: India: An Emerging Economy

Foundation course offered by the School of Economics
Credits: 3

Course Learning Outcomes

After the successful completion of the course, the student will be able to:

1. Explain the evolution of basic structure of the Indian economy

2. Explain the broad strategies of economic development followed since in Independence
and the changes.
3. Discuss the issues of economic growth of India in the post-Liberalisation period in global
context.
4. Discuss the major economic challenges and problems facing the country

This course intends to give a general graduate student an idea of how to understand process
of historical evolution of an economy, which involves an institutional structure for markets
and state to function in coordinated way to help the production and distribution of national
income.

Course Outline

Unit 1. Economic Development: Historical Stages of Development – Economic System –

Markets, State and Development

Unit2. India: At the turn of Independence – Mixed Economy, Planning, Constraints to

Growth

Unit3. Post-Soviet Global Conditions – Economic Reforms 1991 – Growth Dynamics 1991-
2016 – FDI Inflows, Globalisation, High Growth and Decline

Unit 4. Challenges Before: Surplus Labor in Agriculture, Dwindling Employment, Poverty,

Infrastructure , Financial Health
 1. Balakrishnana, Pulapre Economic Growth and Distribution In India, Orient Black
Swan, Hyderabad, 2015.
2. Understanding Economic Reforms 1991 , by Suresh Tendulkar and Bhavani, OUP
2008.
3. India Unbound: Gurucharan Das, Penguin, 2005
4. The New Oxford Companion to Economics in India, edited by Kaushik “Basu and
Annemie Maertens, Volume I & II. OUP, New Delhi.

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 FN 224: Introduction to Financial Markets

Foundation course offered by the School of Economics

Credits: 3

Course Learning Outcomes

After the successful completion of the course, the student will be able to:

1. Describe the functions of money and different types of payment systems.

2. Explain the structure and components of the financial markets.
3. Apply the concepts of interest rate and net present value in investment decisions.
4. Describe different types of bonds and equity instruments.
5. Explain the functions of a commercial bank and central bank.

[Course Description: This course aims at introducing the basics of financial markets with special
reference to India. Beginning with a historical overview of money, and the banking system, the
subsequent modules deal with Banks, NBFCs, RBI, and the capital markets. The basics concepts
such as time value of money, rate of return, interest rates, net present value, inflation effects etc. are
discussed in the first module, which are important to understand the matter covered in the
subsequent modules.]

Course Outline:

Unit-I: Basic Concepts:

Savings and Investment, Time value of money, rate of return and rate of interest, Power of
Compounding, net present value, internal rate of return, Risk and Return, Inflation effects on
Investment, Overview of Business activities, Financial Statements (Accounting, Profit and Loss)

Unit-II: Money, Banking, and Financial System:

Evolution money and banking and payment system, role of financial system in the economy, saving
and investment, money, inflation and interest rate, Regulation.

Unit-III: Banking and Non-Banking Financial Companies

Commercial Banks – Introduction, their role in Project Finance and Working Capital Finance,
Structure of Commercial Banking System in India; Credit Creation Process of Commercial Banks;
The Reserve Bank of India: Developmental Functions; Instruments of Monetary and Credit Control,
and basics of Monetary Policy.
Unit-IV: Financial Markets:
Capital Market Vs Money Market; Securities and their types, i.e., Equity, Debentures or Bonds;
basics of bonds and equity valuation; IPOs and FPOs; Mutual Funds; Brokers, sub-brokers, Process
for becoming a capital market investor; Derivatives markets: Options and Futures.

Readings:
Bhole, L. M., Financial Markets and Institutions, Tata McGraw Hill, New Delhi.

Chandra Prasanna, Finance Sense, McGraw Hill.

Stephen Cecchetti and Kermit Schoenholtz, Money, Banking and Financial Markets, McGraw-Hill
Education, New York, 2015.
Stephen A. Ross, Randolph W. Westerfield, and Bradford D. Jordan, Essentials of Corporate
Finance McGraw-Hill Education, New York, 2017.

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