The Department of Economics which started initially as a combined department of History, Economics and Politics (HEPA) in 1931, is now one of the oldest Departments in Andhra University.  Over a period of time a separate Department of Economics was carved out of HEPA.
    
     As early as 1944, the Department of Economics visualized a great future for Mathematical Economics and was the first in the country to offer Mathematical Economics as an additional course.  Students with Mathematics background were given this specialization and B.A. (Hons) with Mathematical Economics degree was awarded to them.  When Statistics Department was started in the University in 1950, Mathematical Economics course was strengthened by permitting the students who passed Mathematical Economics course was strengthened by permitting the students who passed Mathematical Economics, to study M.Sc Statistics.  This provision proved to be a great success and even now a number of students are taking advantage of this facility.  In 1960's the earlier system of Three year honors degree was replaced by a four year Honors course and M.A. by study and examination.  In 1965 the Honors system was abolished and replaced by M.A. (2 years) by study.
    
     In 1968 the United States Educational Foundation in India (USEFI) selected Andhra University for special assistance to social sciences, under the SSRC, USA.  Under the scheme a number of staff members of the Department have gone to U.S.  Universities for higher studies and most of them returned with Ph.D. Degrees.
    
      In the first two decades i.e., upto 50's personal research and training of students for Honors Degree by the staff have been a prominent feature besides motivating students to take up the competitive examinations for All India Services.  During the next two decades i.e. 50's and 60's the Department received financial assistance to work on research projects sponsored by Central/State Governments, Planning Commission and other organizations.  As a result, empirical research got a fillip.  Since 70's importance was given for coordinated research, training students for Ph.D. besides teaching post-graduate course.
    
     Until 2000, the Department offered Post-Graduate course in Economics with specialization in Mathematical Economics, International Economics, Industrial Economics, Public Economics, Monetary Economics, Human Resource Development, Environmental Economics, Demography, Cost-Benefit Analysis and Welfare Economics, M.Phil programme and Ph.D. programme.  The student intake is 60.  At present the number of research scholars in the department is 80.  The number of Research Degrees awarded in the department so far are 73 Ph.D's and 46 M.Phils.

     Now the Department has 9 Professors, 4 Associate Professors and 5 Assistant Professors of high competence specializing in the areas of International Economics, Econometrics, Mathematical Economics, Agricultural Economics, Industrial Economics, Public Economics, Labour Economics, Monetary Economics, Demography Economics of Health, Economics of Education, Environmental Economics and Poverty studies.  Besides conducting theoretical and empirical research in these various fields, the Department has considerable expertise in conducting socioeconomic surveys and evaluation studies.