The Department of Economics was established in the year 1954 by Dr. V.Shanmugasundaram, the founder head of the Department who was also the former Vice-chancellor of the Manonmaniam Sundaranar University. The Undergraduate Department of Economics was transformed into a Post-graduate Department by the consistent efforts of two erudite scholars and former heads, Professor U.K. Menon, and Dr.V. Loganathan, Emeritus Professor, Tagore Chair, University of Madras. With the continuous and strenuous efforts of Dr.V. Loganathan, the Post-graduate Department of Economics has become a full-fledged Research Department Since 2005 onwards. The department holds the highest number of student strengths in the college with more than 450 students. The department has 10 faculty members. The department has completed 5 minor research projects and provided 41 Ph.D., Candidates.

The Department has organized 4 National level seminars of which 2 were sponsored by UGC and the other 2 by independent funding Agencies. Faculty members in the department are involved in numerous academic activities and hold membership in various Economic fora like the Indian Economic Association, Indian Econometric Society, Indian Labour Economics and Association of Economists of Tamil Nadu.

Library

• The Department is honoured with course materials and good number of books for students reference.
• The department subscribes the journals, Economic Political Weekly and Southern Economist.

Infrastructure

• A well-furnished staff room,
• A high configured computer system with internet facility and spacious class rooms with proper ventilation.

• The Department of Economics has organized various activities to benefit the students.
• The department conducted a special lecture on the “Employment opportunity for the graduates of Economics” delivered by Dr. L. Venkatachalam, Professor of Economics, MIDS, Chennai on 29th August 2019. 
• The department conducted a special lecture on “How to prepare for the UPSC and TNPSC Exams” delivered by Mr. Sakthivel Ramasami from Acham Tavir IAS Academy on 27th January 2020.
• Students and faculties altogether organized the association function that was held on 12th March 2020. Dr. V.N. Parthiban, Associate Professor and Head (Rtd), Department of Commerce, R K M Vivekanandha College, addressed our students and distributed prizes for the meritorious students. 
• Dr.P. Rajasimman Organized a webinar on ‘Covid-19 and Macro Economics’ a lecture delivered by Dr. T.K.S. Villalan (Retd.), Associate Professor and Head, Department of Economics, Pachaiyappan College, Chennai on 3rd June 2020. 
• Dr.P. Prabhu Organized a National Level Webinar on ‘Economic Challenges of Covid-19’ on 6th August 2020.
• r.B. Sasikala Organized a National Level webinar on ‘How to become a successful Entrepreneur’ on 1st July 2020.