The Department of Economics, established in 1957, is one of the most vibrant departments in Assumption College. The Department was an annexure of the Department of Economics of SB College Changanacherry from 1950-1957. The department received an independent identity in the year 1957, when the College was granted the status of First Grade College and permission to start three year degree course. When the first batch of the BA degree in Economics was started with 15 students in 1957, two other social sciences- History and Political Science were included in this department. Both Economics Association and Planning Forum were initiated in 1958- 1959. A second batch for BA Economics was sanctioned by the University in 1967-68. In 1990, this batch was converted in to BA History and the Department of History came into existence. By 2001 all pre-degree batches were de-linked and the department was left with its undergraduate programme.
The Department is known all over the state for the two day educational fest OIKONOMIA– Inter Collegiate Competitions on Debate, Paper Presentation and Quiz. Entrepreneurship Development Club, started in 2005, is yet another milestone in the history of the department. The Department has been in the forefront in bringing out innovations in teaching and learning, going well beyond the curriculum specified.