The department is formed in the background of the growing importance of Economics as a discipline over the years and its emphasis on rigorous quantitative and analytical reasoning. The department's objective is to be attune with the latest developments in the field, produce high-quality research, and graduate well-trained students. Cutting edge research conducted in the department will also help enhance policy making for government and government bodies, and enhance decision-making for businesses. The Economics faculty used to be housed earlier at the Department of Humanities and Social Sciences (HSS) within the institute.

The new department will significantly increase interest from prospective faculty members and PhD scholars. It will also give focussed identity to faculties and students while applying for research grants, internships, exchange programs, and higher studies. IITB’s global presence in the area of Economics will be enhanced by the identity offered by the new department.

The economics group already launched a four-year BS (economics) degree program in 2017 that has been very successful and has attracted top IIT Joint Entrance Exam (JEE) rankers. In addition, the department will offer in the future, a Minor specialization in economics, and an Inter-Disciplinary Dual Degree Program (IDDDP) for the undergraduate students. An MS degree in economics will also introduced in near future.

The Economics Department is committed to creating a welcoming and supportive culture in which all students, faculty, and staff feel they belong and are able to grow.