To perpetuate the memory of Dr. John Matthai, the Finance Minister of India during 1948 – 50, the University, in 1976 established the Department of Economics, at Thrissur on 18 acres of land donated by the family of Dr. John Matthai. Over the years, the Department has grown into a prestigious centre for higher studies in economics with a strong base in research. The Department faculty have undertaken and completed many research projects sponsored by UGC, ICSSR, Planning Commission, Ministry of Environment, Government of India, various Commodity Boards and a host of NGOs. The faculty also has publications in international and national journals and they also act as consultants for different organizations. Some of the members of the faculty have earned prestigious fellowships of well known organizations involved in research in economics and development. The Department offers Ph.D/M.Phil/MA programmes. Since the inception of the Department, 80 students have earned PhD under the guidance of the Department faculty.

A large number of students have made their mark as well versed economists and come to occupy top positions in international and national institutions. The Department has a well developed library of a collection of about 10000 titles and over 30 journals.