INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE

EXECUTIVE POST GRADUATE PROGRAMME

Course Outline

Course Code and Course Title EPGP 203: Economic Environment

Course type Compulsory

Pre-requisites (if any) NIL

Course Credit 2

Total No. of Sessions 8

Session Duration 150 minutes

Quarter II

Year and Batch 1st Year 2024-25, EPGP-16

Sections (if any) 6 (ABCDEF)

Instructor(s) Ashok Thomas, Prof. Mridul Kumar Saggar,

Prof. Amaresh Samantaraya,
Prof. Gogol Mitra Thakur
Contact Details Dr. Ashok Thomas: 0495-2809128;
[email protected]
Office Dr. Ashok Thomas: Faculty Block 1, Room No. 25

Consultation Hours On Appointment

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 the economic
environment helps a business manager to evaluate the impact of the changing business
environment on decision-making. In the Indian context, the introduction of economic reforms
since 1991 has brought in a sea change in the economic environment of India. 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
becomes imperative for practicing managers and business leaders.
The course covers important concepts and linkages relating to the economic environment.
They mainly include national income accounting; cost of living; labour market and
unemployment; aggregate expenditure, demand, and supply; monetary policy and fiscal
policy, and international linkages. In this context, the course also covers the developments
and structural changes in the three key sectors of the Indian economy namely agriculture,
industry, and services. These sectors witnessed major changes over the years which have far-
reaching implications for business and the economy. A proper study of the various aspects of
the three sectors is important for a broader understanding of the dynamics of India’s
economic environment

Learning Outcomes/Course Objectives

Course CLO Key Verb Linked Key word Degree of

Learning from Programm linking emphasis
Objective Bloom’s e Level CLO with given to the
(CLO) Taxonomy Objective PLO PLO in the
No. verb list (PLO) No. course
Introduced /
Emphasized /
Reinforced
CLO-1 Identify PLO 1.1 Macro Introduced
To expose the
foundations
fundamental
principles and
issues of
macroeconomics.

CLO-2 Recognize PLO 1.1 Functional Introduced

To understand
Knowledge
the functioning
of India’s
economic
environment and
the policies
followed by the
government and
central bank
CLO-3 Use PLO 2.2 Use, Introduced
Application of
analytical,
macroeconomic
framework
tools and
techniques in
anticipating
changes in the
economic
environment that
will help in
 taking effective
business
decisions.

CLO-4 Assess PLO 2.2 Analyze Introduced

To assess the
and
impact of
Interpret
government and
central bank
policies on the
economy, society
and business.

Program Level Goals of EPGP-IL Learning Outcomes (Objectives)

To nurture and build upon the 1.1 Develop advanced knowledge of various
participant’s experience with management concepts and tools across business
appropriate conceptual, theoretical, functions. (Functional Knowledge)
and applied concepts 1.2 Critically evaluate and integrated business
intelligence and apply concepts to practice.
(Integration & application of concepts).
To enable participants to develop 2.1 Develop analytical skills to propose innovative
innovative, balanced and optimal solutions (Critical/analytical thinking)
solutions for solving complex 2.2 Integrate and apply core concepts to analyze,
problems of the future initiate and implement managerial actions
(Integration & application of concepts)
2.3 Communicate ideas effectively to influence and
inspire (Communication)
To transform the participants into 3.1 Develop as sense of social and environmental
socially, environmentally responsible concerns and role of business in society
and ethical leaders in a changing (Sustainability)
global environment 3.2 Lead and work with others in local and
international environments (Leadership)

Textbooks and Learning Materials

Text Book(s)

Macroeconomics by Dean Karlan & Jonathan Morduch, McGraw Hill Education, IIIrd
edition, 2020 (KM)

Reference Book(s)
Compendium of readings based on notes, articles, and reports on the different topics
Additional Reading(s)
  Fault Lines: How Hidden Fractures Still Threaten the World Economy by Raghuram
Rajan
 The Age of Turbulence: Adventures in a New World by Alan Greenspan
 Misbehaving: The Making of Behavioral Economics by Richard H. Thaler
 Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for
Global Capitalism by George A. Akerlof and Robert J. Shiller
 Making Globalization Work by Joseph E. Stiglitz
 Capital in the 21st Century by Thomas Piketty
 India Unbound: The Social and Economic Revolution from Independence to the
Global Information Age by Gurcharan Das
India After the Global Crisis by Shankar Acharya
Technology and Software (if any)

NIL

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

 http://gregmankiw.blogspot.in/
 http://ajayshahblog.blogspot.in/
 http://www.economist.com/
 http://www.arthapedia.in/
 http://nourielroubini.blogspot.in/
 http://www.freakonomics.com/blog/
 http://economistsview.typepad.com/
 https://www.cnbctv18.com/tags/videos/indianomics.html (Indianomics)
 https://tinyurl.com/ya5at7g6 (Macros with Mythili, ET Now)
 livemint.com

Pedagogy Used/Learning Process

The pedagogy will be a mix of lectures, experience sharing, real-life case discussion,
seminars, and industry/research-based projects. In addition to the textbook, additional
readings and cases will be distributed in the class from time to time. Students are expected to
carry one industry-based group project to apply the concepts.

Evaluation Components/Assessment of Student Learning

Assessment Tool Percentage Description Intended subject

 learning outcome to be
assessed
Quizzes 20% These components are CLO-1
required to assess the
End term Exam 50% CLO-2, CLO-3, CLO-4
depth and breadth of
students’ understanding of
key concepts and issues
covered in the course
Project Work 30% This facilitates students to CLO-3, CLO-4
(Report and demonstrate the ability to
presentation) integrate available
information to critically
evaluate an 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 KM 7
Income Nominal GDP, Limitations of GDP
Accounting
3 Tracking the CPI, WPI, Purchasing Power Parity, KM 8-9
Cost of Living Unemployment
4 Fiscal Policy Aggregate Expenditure Model, KM 11-13
Aggregate Demand and Aggregate
Supply, Fiscal Policy in India
5 Money and Money, Monetary and Financial KM 15
Financial System, Commercial Banks
Services
6 Monetary RBI, Monetary Policy Transmission, KM 16
Policy Tackling Inflation
7 International Trade and Balance of Payments, KM 18
Trade, Capital Fixed and Flexible Exchange Rate
Flows & Systems, Macroeconomic Policy and
Exchange Rate Exchange Rate
8 Sectoral Is the India’s Agriculture, Industry, Handouts
sues in Indian Services Sectors; Future Economic
Economy Challenges
The group project will be one of the most important components of the course where the
students explore the economic issues around the globe. They will incorporate the theory
from the class and analyze the economic problem using data. Each group will comprise of
approx. six students. Each group will finalize the project in consultation with the concerned
faculty.

Group Project Report: A project report in the recommended format shall be submitted by
each group as per the deadline announced. Guidelines and report format are provided at the
end. The project also will have a log sheet and a sheet to note the key learnings each
individual in the group has acquired
Group Project Presentation:
 The presentation will be aligned with the lecture.
 Each presentation will be of 5 minutes where the group will highlight the key
findings of the topic.