INTERNATIONAL MANAGEMENT INSTITUTE

Indian Economic Policy (Core Course)

PGDM 2014-16
Term - IV
INSTRUCTORS
Dr. Vijay P. Ojha (Section A)/ Dr. Arnab Deb (Section B)/ Dr. V. K. Seth (Section C)
(arnab.deb@imi.edu)
Chamber Consultation Hours: 3:00 pm 5:00 pm (Friday) and By Appointment
Course Description
The course Indian Economic Policy intends to provide students of the PGDM BFS program
a broad exposure to the economic policies capable of altering the business environment of the
economy. For a manager it is worth understanding the economic environment of the economy
which is controlled by the economic policies implemented at the central and regional level of a
country. Alteration in existing policies or implementation of a new policy heavily influences the
effectiveness of a decision taken by a firm.
Objective
Main objective of the course is to equip the students to understand rationale and theoretical basis
underlying different policies, formed by the government, and their consequences on economic
environment of business.
Pedagogy
The course will be predominantly lecture-based, with the material drawn from selected chapters
in book and articles in journals and newspapers and other supplementary material recommended
by the instructors. Students are strongly advised to be diligent, both by way of coming prepared
to class and by investing time after class in keeping up with the topics covered in class.

Text Book and References

The course will not have any specific text book. Following books (selected chapters) and articles
in journals and newspapers will serve as the main references for the course:
1. India's Reforms - How they Produced Inclusive Growth (ed.) by Jagdish Bhagwati and Arvind
Panagariya (OUP, 2012)
2. Reforms and Economic Transformation in India (ed.) by Jagdish Bhagwati and Arvind
Panagariya (OUP, 2013)
3. India's Economic Reforms, 1991-2001 by Vijay Joshi and I.M.D. Little (OUP,1996) ?
4. Macroeconomic Policy Environment (2nd ed ) by Shyamal Roy (Tata McGraw Hill. 2010)
5. The New Oxford Companion to Economics in India (2 volumes) edited by Kaushik Basu &
Anne Maertens (2014)
6. Indian Economy since Independence (25th ed.), edited by Uma Kapila (Academic Foundation,
2014)
7. Indian Economy since Independence (19th ed.) edited by Uma Kapila (Academic Foundation,
2014)
8. Two Decades of Economic Reforms edited by Uma Kapila (Academic Foundation, 2012)
9. Indias Development Story edited by Raj Kapila and Uma Kapila (Academic Foundation, 2015)
Also, individual faculty members may supplement above mentioned books with relevant
readings as necessary. However, students are strongly encouraged to stay acquainted with
current economic and political events by continually accessing popular newspapers such as the
Business Standard, Economic Times, Financial Express, Business Line, besides international
publications such as the Financial Times and the Economist magazine. This will serve the
multiple purposes of acquainting students with current events, enabling them to understand how
economic policies work in the real world.
Additional Readings
1.
2.
3.
4.
5.

India Unbound Gurcharan Das

The Elephant Paradigm Gurcharan Das
India: After the Global Crisis-Shankar Acharya
Economic Survey of India (various years)
Reserve Bank of India Annual Reports (various years), and Report on Currency and
Finance (various issues)

Useful Web links:

1.
2.
3.
4.
5.
6.
7.
8.
9.

Ideas for India: http://ideasforindia.in/Default.aspx

Financial Times : www.ft.com;
The Economist : www.economist.com;
Greg Mankiw: http://gregmankiw.blogspot.in/;
Daron Acemoglu: http://whynationsfail.com/;
Paul Krugman: http://krugman.blogs.nytimes.com/2013/09/17/now-thats-shrill/?_r=0
Wall Street Journal: http://online.wsj.com;
Ted Talk : http://www.ted.com/talks;
For Economics A-Z: http://www.economist.com/;
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10. www.econtalk.org
11. Business Standard: www.business-standard.com;
12. CNN Finance;
13. Reuters;
14. Reserve Bank of India: http://www.rbi.org.in/home.aspx;
15. Ministry of Finance (GoI) : http://finmin.nic.in/;
16. Hindu Business Line: http://www.thehindubusinessline.com/;
17. Economic Times: http://economictimes.indiatimes.com/;
18. Business Standard: http://www.business-standard.com/.
Evaluation:
There will be a threecomponent evaluation as follows:

Components

Weight (%)

End Term
Mid Term
Group Presentation

40
30
30

Tentative Topical Outline and Session Plan

1. State vs. Market with reference to the Indian economy (1 lecture)
2. Stabilization Policies (2 Lectures)
a. Fiscal Policy
b. Monetary Policy
3. Economic Regulation in Major Markets (2 Lectures)
a. Labor Market
b. Capital Matket
c. Land Market
4. Policies for Growth and Development(3 Lectures)
a. Industrial Policies
b. Small Business Policies
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c. Policies for Service Sector

5. Foreign Trade Policies
a. Exchange Rate Policy (2 Lectures)
b. Trade Policy for Merchandise Trade
c. Policy issues in for trade in services
6. Foreign Investment Policies (1 Lecture)
a. FDI Policies
b. FII Policies