The Department was founded in 1936 at Kazan State University and later became the part and one of the leading departments of the Kazan Institute of Finance and Economics. The distinctive feature of the Department has always been its interdisciplinary approach in education, involving industrial economists, managers, practitioners, technological engineers and lawyers. Multi-skilled alumni successfully work in various production industries occupying positions ranging from economists and heads of different organizations to Ministers. In 2011 the Department of Production Economics was merged with the Department of Labor Economics and the Department of Industrial Management.

The Department provides education in 35 disciplines with a strong focus on contemporary trends of social and economic development and its legal regulation. All the major disciplines are in accordance with the MOODLE electronic resources.

Key research areas include:

In 2012 the Department of Production Economics won the national competition for the Best Department of Economics 2012".