Economics has been a strongly recommended subject for those who are interested in social, political and international trends. Economics demands serious academic work and provides a range of opportunities for higher study and employment. By choosing to study the subject at the graduate level you could derive a strategic advantage in terms of occupational options.
The study of economics will lead you to investigate the use of resources and their utilisation and distribution, to involve in economic management and distribution of scarce resources such as land, labour, raw materials and machinery for producing goods and services. Economists’ major task involves researching, collecting and analysing data in varied work situations. Today with rapid technological advancements, deregulation and globalization in all significant areas on the one hand and problems related to health, energy crisis and inflation on the other research by economists has assumed tremendous value.
Business Economics is a dynamic field and relates to businesses and other organisations, including insurance companies, banks, securities firms, industry and trade associations, labour unions and governmental agencies. The use of mathematical models to develop programs predicting answers to questions such as the nature and length of business cycles, the effects of tax legislation on unemployment levels are potential domains for work. Within the social sciences, the field of economics is perhaps the most rigorous in terms of the use and application of mathematical and statistical reasoning.
Specialized courses provide quantitative tools needed to apply economic theory and economic analysis in business, legal and governmental decision making.Topics of specialization are many and include the study of energy costs, business cycles, employment and unemployment, housing, health care, money policies, taxation, labour contracts, agriculture, environment, information technology and international trade.
Nature of Work
General Economics provides general analysis of decision making where resource constraints are present. Students with a bachelors degree in General Economics are often employed in private business firms, in the financial, retailing, and industrial sectors of the economy and in such diverse fields as actuarial science, elementary and secondary education, investment banking, securities analysis, corporate finance, law, politics and environmental regulation, as well as government and academia. General Economics is also regarded as excellent preparation for advanced work towards a degree in law as well as a Ph.D. in a number of social science fields such as economics, international relations and political science.
Research economists develop mathematical models to explain and interpret business cycles, inflation, effects of tax policies or unemployment. Economists specialize in one or more areas of economics e.g Labour economist is concerned with pay and working hours, labour associations and labour policies of the government. There are industrial economists who study business organizations involving themselves in analysis of production costs, markets and investment problems.
There are economists who work on taxes, banking, multinational trade, finance, comparative economic systems, economic theory etc. Agricultural economists specialize in the study of farm management, land reforms, crop production, legal matters concerning agricultural work, forecasting and predicting agricultural produce. Market research draws upon economists to conduct surveys, interviews, study demand of consumers, product popularity etc. Economists apply Mathematics and Statistics to the theory and principles of economics. Business and government use econometrics for analysis and prediction of all economic activity. Economists work in one of the three sectors:
Government and public sector enterprises
Economists working with the government or with public sector enterprises are involved in forecasting, research, market analysis and the analysis of policy and individual projects. Economists work out forecasts for the economy as a whole and also for individual sectors and parts of it e.g. in agriculture transport, employment training, social plan’s etc. Most forecasting involves the use of econometrics. They often use computerised systems. Economists work on devising new strategies or in remodelling existing ones. Through policy analysis they provide background information, guidance, advice on implementation and estimate of policy effectiveness.
Analysis for cost effectiveness and investment study plays an important role in working with the government. These analysis are used to evaluate large projects of the government. Most economists working with the government are also involved in research projects.
Industry and trade
Companies employ economists to make assessments of connections of organisational policy to larger business conditions and economic trends which eventually influence business decisions.
Economists in business provide advice to help business managers plan a company’s strategy and manage its operations. They analyse the customers demand for their products, the cost of raw material and components, and the markets and business systems within which they and the company, operate. They work out labour and equipment costs also. Economists analyse competitors performances in terms of profitability share of the market and likely growth plans.
Setting up of a new factory, production growth or marketing are all within the domain of an economic analyst who bases his judgement on cost-effective analysis, investment appraisal and risk and sensitivity analysis. In trade there are economists who work in the area of international trade policies, regulations and business.
Banking and finance
Most economists’ working in this area are involved in compiling and appraising economic information from government statistics and company reports. Most specialize in finance sectors, e.g., specific industries or banking. Economists with the organization which have made investment or loans in foreign countries have to study the economic policy of that country. In merchant banks forecasting is a large part of the work. Economists with stock exchanges forecast the economy, especially interest and exchange rates, and the prospects for particular sectors.
Specialisations
Due to the ever-expanding fund of economic knowledge, more and more economists tend to specialize in one specific area.
Business economists - Business economists concentrate on studying company policy in relation to general business conditions, national and international trade policies, governmental regulations and directives. This information is used by company’s management in making decisions about company policies and for planning the future activities of the business.
Agricultural economist - He studies economic aspects of agricultural problems pertaining to exploitation of rural resources and production and marketing of farm products in order to increase efficiency of farm management, improve farm income and effect favourable agricultural legislation. He forecasts production and consumption of agricultural products, locates optimum markets and recommends improvements in agricultural financing.
Financial economist - studies the nature and the relationship between the quantity of money, credit and purchasing power in order to develop monetary policies and so as to predict financial activity. Credit structures and collection methods are all examined by him. He also examines banking methods and procedures to devise techniques for regulation of lending, fixing interest and discount rates. Another responsibility is of establishing domestic and international monetary policies.
International economist - collects and analyses statistical data and other information on foreign trade in order to effect favourable trade balances and establish acceptable international trade policies. Exchange controls and operation of foreign exchanges, study, implementation and formulation of policies on investments, and transfer of capital is also the job of an economist who is working on the international scene.
Labour economist - works on labour trends, labour policies such as labour legislation, social insurance, industrial accident provisions and similar regulations. He is well versed in the operation of labour unions, industrial policies of management and can handle labour disputes. He could work as an advisor to government or industry.
Industrial economist - studies the organizational structures of business concerns in relation to production and marketing of goods, services in order to make maximum use of assets and develops desirable markets. He investigates methods of financing, production costs, techniques of marketing policies for possible improvements. He analyses market trends to relate production for future consumption and interprets effects of governments regulations and legal restrictions on industrial policies.
Work Environment
Economists working for government and private organisations have structured work schedules. They may be the only workers preparing reports, statistical charts, computers and calculating machines. They may be an integral part of a research team also. They are expected to work within deadlines, heavy workloads and tight schedules. They attend meetings & conferences. In banks and businesses they may have to travel and interact with government and financial institutions.
Economists serving as academia have flexible work schedules, dividing their time among teaching, research, consulting and administrative responsibilities.
Personal Characteristics
Economists must be good at numerical ability so as to work with figures. They should be analytical as they use economic techniques for analysis. An interest in current affairs is important as well as the ability to assess the implications from an analysts view point. Good communication skills in speech and writing are essential, so that they can explain complex economic analysis to non-specialists.
Economists must be logical thinkers, able to handle concepts and figures with ease. Mathematical acumen is essential as most concepts emerge from numerical analysis. In a business setting the economist must be able to clarify his thoughts and predictions in relation to the industry.
Employment Avenues
Multiple Options
Economic consultancy and time series forecasting are the most lucrative and challenging options. As compared to MBA’S Economist do well in finance, market research and in forecasting.
Economists are employed in a number of government and public enterprises, e.g., in Labour departments and organizations dealing with issues related to employment, labour tribunals, research etc.
Census organizations, finance and investment firms all recruit economists. Banks and business journals and newspapers recruit and train graduates for manning their special departments. Market research organisations recruit economic graduates as management executives.
Indian Economic Service (IES)
Economic services of the government recruits officers through the Indian Economic Services examination conducted by UPSC. This is a Central Government Service which is involved in economic planning and analysis through state boards, planning commission, financial organisations and government bodies for the country.
Post Graduates in Economics/Applied Economics/Business Economics/Econometrics in the 21-30 age group (as on 1st Jan of the year of applying) are eligible for the IES examination. The announcement for the examination is made in June every year for the examination in November.
Scheme of examination for IES -There is a written examination followed by an Interview. The written examination has 2 parts. Part I has the General English and General Studies papers of 100 marks each. In Part II there are 4 papers of Economics. Three papers on General Economics and one in Indian Economics. Each paper is of 200 marks. The English paper is a test of English usage, language proficiency (Essay, precis) and comprehension. The General Studies paper covers questions in current affairs, history, general science and geography. Economics papers are of the postgraduate standard.
Selected candidates have to clear an interview, after which they are appointed to Grade IV posts.
Planning Commission
Postgraduates in Economics with 2 years of research experience are recruited as Economic investigators in the Planning Commission for its Programme Evaluation Organisation through Union Public Service Commission examination. Graduates with Economics as a subject or Hons. degree are recruited as Research Assistants for Economics. They are also selected as Economic investigators Grade 2 in the Planning Commission. Some ministries such as Agriculture, Labour etc. also appoints them as Junior investigators. The selection is made by Staff Selection Commissions.The job involves collecting and compiling data or information from various sources, tabulating and analysing the data and preparing reports.
Reserve Bank Services
Reserve Bank of India, Department of Economic Analysis and Policy, recruits postgraduates in Economics as research officers through a written test,. The selection examinations are announced through newspapers.
Postgraduates in Economics, in the age group of 21-28 years (relaxation for Doctorates), are eligible for the RBI written examination. The test has 3 papers. Paper I is an objective paper including numerical, English and general knowledge questions. Paper II is a descriptive type paper of essay writing, comprehension, precis. Paper III is an Economics paper. Paper I is the screening paper. Economics paper is of the postgraduate level. Selected candidate have to appear in an interview for final selection. The selection is conducted by the Reserve Bank of India Services Board, Hong Kong Bank Building, MG Road, P O Box 10009, Mumbai 400 023.
Study and Training
Economics as a subject is taught in many schools in India from Class IX although it is only in Class XI that economics theories are discussed. Those who have enjoyed studying economics at +2 stage can select this subject for study at the undergraduate level. Specialization is only offered at the post graduate level.
Subjects for specialisation - Advanced Business Economics, Public Economics, Economic planning, Managerial Economics, Agriculture Economics, Economics of public utilities, Monetary Economics, Industrial Economics of India, Transport Economics, Economic History and Development, Economic problems of a selected region (Africa), Labour Economics and legislation, Economic statistics in India, Principles and practice of Economic Administration, Development Economics, International Eco, Economic Planning and Policy, Management Economics, Economics of Indian Industries, Economic Growth, Personnel Management Household Economics, Transport and Economics of public utilities. Many students of economics study management, finance, finance control, or even business journalism after completing graduate courses.
Institutions involved in Economic study and research
- Institute of Economic Growth, University of Delhi, North Campus, Delhi 110007 www.iegindia.org
-Indian Council of Social Science Research, JNU Institutional Area, Aruna Asif Ali Marg , New Delhi-110067 www.icssr.org
-National Council of Applied Economic Research (NCAER), Parisila Bhawan, 11 Indraprastha Estate, New Delhi-110002 www.ncaer.org
-Institute of Studies in Industrial development, PO Box 7151, Narendra Niketan, Indraprastha Estate, New Delhi-110002 www.icssr.org
-Institute of Applied Manpower Research, New Delhi-110002
-National Institute of Rural Development, Rajendranagar, Hyderabad-500030 www.nird.org.in
Centre for Economic and Social Studies, Nizamia Observatory Campus, Hyderabad 500016 www.cess.ac.in
-Indian Statistical Institute, 203 BT Road, Kolkota-700108 www.isical.ac.in
-Indra Gandhi Institute of Development Research, Mumbai, Gen. AK Vaidya Marg, Film City Road, Goregaon(East) Mumbai-400065 www.igidr.ac.in
-Institute of Development Studies, 8-B, Jhalana Institutional Area, Jaipur-302004 www.idsj.org
-Institute for Social and Economic Change, Nagarbhavi, Bangalore-560072 www.isec.ac.in
BA and BA (Hons) in Economics is offered by almost all universities in the country. Economics can also be taken as a subject in B.Sc.
