Indian economy is a part of the General Studies III paper in the UPSC CSE Main exam. It is included in all the three stages of the UPSC CSE exam, hence, it is pertinent to prepare it extremely well. Questions related to recent development and growth vis-a-vis industry, agriculture, trade, and transportation are asked in prelims, mains, and even during the interview process.
This article discusses the UPSC Economics syllabus for Civil Services Examination along with the preparation strategy and suggested booklist for preparing the UPSC economics syllabus.
The syllabus of the Indian economy for UPSC entails two major sections including economic development and agriculture. The detailed syllabus for each of these sections is discussed below:
Economic Development
Indian Economy & Issues Relating to Planning, Mobilization of Resources, Growth, Development & Employment |
Planning |
Meaning of Planning; Need for Planning in Economic Development; Imperative Vs. Indicative Vs. Structural Planning; Objectives of Planning; Indian Planning History; Techniques of Indian Planning; Achievements & Failures of Indian Planning; Shortcomings of Planning in India; NITI Aayog Vs. Planning Commission; |
Mobilization of Resources |
Types of Resources – Financial, Human, Natural, etc.; Need for Resource Mobilisation Role of Savings & Investment; Government Resources – Tax & Non-Tax ( or Fiscal & Monetary Policy); Banking Sector & NBFCs Capital Market; External Sources – FDI, ODA, etc; Public Borrowing & Management of Public Debt; Challenges in Mobilising; Resources for Development; Steps That Can Be Taken; |
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Growth & Development |
Meaning of Development & Growth; Difference between Development & Growth; Determinants of Growth & Development; Importance & Limitations of Economic Growth; Jobless Growth; Pro-Poor Growth; Balanced & Unbalanced Growth; Dimensions of Development; Measurement & Indicators of Development; Approaches to Development: Market-Based Approach, Role of State and Planned Approach, Mixed Economy Approach; Challenges to Development & Growth |
|
Employment |
Nature – Rural vs. Urban; Formal Vs. Informal; Terms Related to Employment – Labour Force Participation Rate, Employment Rate, Working Age Population, etc.; Sectoral Distribution of Employment; Quality of Employment; Causes of Lack of Employment; Restructuring of Workforce; Government Initiatives for Generating Employment |
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Inclusive Growth & Issues Arising From It |
What is Inclusive Growth?; Elements of Inclusive Growth; Need for Inclusive Growth; Indicators of Inclusive Growth; Challenges in Achieving Inclusive Growth in India; 12th FYP & Inclusive Growth; NITI Aayog Vision Document |
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Government Budgeting |
Need for Government Budgeting |
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Components of the Government Budget |
Revenue Account – Revenue Receipts & Revenue Expenditure; Capital Account – Capital Receipts & Capital Expenditure |
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Changes in the Budgetary Process |
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Measures of Government Deficit |
Revenue Deficit; Fiscal Deficit; Primary Deficit; |
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Fiscal Policy |
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Deficit Reduction |
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FRBM Act |
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Other Types of Budgets |
Outcome, Zero-Based, etc. |
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Land Reforms in India |
The rationale for Land Reforms; Components of Land Reforms; Impact of Land Reforms; Problems in Implementation of Land Reforms; The success of Land Reforms; Recent Initiatives - Land Leasing, Land Acquisition, Rehabilitation & Resettlement Act, etc |
|
Effects of Liberalization on the Economy |
The phase of Liberalisation; Impact on Different Sectors of the Economy |
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Changes In Industrial Policy & their Effects on Industrial Growth |
Industrial Policy Before 1991; Industrial Policy After 1991; Phases of Industrial Growth; Linkage Between Economic Reforms and Economic Outcomes; Weaknesses and Failures of Industrial Policies; National Manufacturing Policy; SEZs; Make in India; |
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Infrastructure |
Energy Ports Roads Airports Railways |
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Investment Models |
Need for Investment |
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Sources of Investment |
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Types of Investment Models |
Domestic Investment Models; Public Investment Model; Private Investment Model; Public-Private Participation; Investment Model; Foreign Investment Models: FDI FII, etc.; Sector Specific Investment Models; Cluster-Based Investment Models |
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Investment Models Followed by India |
Agriculture
Major Crops Cropping Patterns in Various Parts of the Country |
Importance of Cropping Pattern; Types of Cropping Pattern; Reasons Why Cropping Pattern Differ; Factors Influencing Cropping Pattern; Emerging Trends in Cropping Pattern; Long-Run Effects of Current Trends in Cropping Pattern; |
Different Types of Irrigation & Irrigation Systems Storage |
Modes of Irrigation; Sources of Irrigation; Choosing an Irrigation System; Problems Associated with Irrigation; Progress of Irrigation Under Five Year Plans; Environmental Effects of Irrigation; Need for Systemic Irrigation Reforms; Need for a National Water Policy; |
Transport & Marketing of Agricultural Produce & Issues & Related Constraints |
Process of Agricultural Marketing - Marketing Channels, Functionaries, Costs, etc; Role of FCI; Regulated Markets; Warehousing; Cooperative Marketing; Shortcomings of Current Agricultural Marketing Process; APMCs; National Agricultural Market (NAM); Farmer Producer Organisations (FPO); Contract Farming; Futures Trading in Agricultural Commodities; |
E-Technology in the Aid of Farmers, Technology Missions |
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Issues Related to Direct & Indirect Farm Subsidies & Minimum Support Prices |
Agricultural Pricing Policy; Rationale for Subsidies; Types of Subsidies; Effectiveness, Extent & Problems of Subsidies; Clash with WTO Agreements; |
Public Distribution System Objectives, Functioning, Limitations, Revamping |
Objectives/Significance; Functioning - Fair Price Shops, FCI, Ration Cards, Aadhar Linking, etc; Shortcomings or Problems Associated with PDS; Need to Improve the Working of PDS; Measures to Improve the Loopholes & Lacunaes Associated with PDS; Steps Taken by Government in this regard; |
Issues of Buffer Stocks & Food Security |
Buffer Stock – Objectives & Norms in India; Impact of Government Procurement & Distribution Need for Food Security; NFSM And the Food Security Related Government Initiatives; |
Economics of Animal-Rearing |
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Food Processing & Related Industries in India |
Scope & Potential in India; Significance; Location; Constraints and Challenges; Upstream & Downstream Requirements; Supply Chain Management; Government Policies and Initiatives – SAMPADA, 12th FYP, etc |
The economy of any country serves as the foundation for its growth and development. As a potential member of the bureaucracy, it is important to have a sound understanding of how the Indian economy works. The GS III paper in UPSC CSE Mains assesses the candidate’s knowledge in this regard. Indian economy is also included in the General Studies Paper in Prelims wherein the major focus is on the budget allocation and recently launched schemes. Here are some tips that may be useful for preparing economy syllabus for UPSC:
Start with NCERTs: It is important to have a strong understanding of key concepts of economy. NCERTs are the best resource to cater to that need. Moreover, questions are asked directly from the NCERT. Hence, it is important to read them carefully.
Read IGNOU/NIOS notes: After you’re done with NCERTs, supplement your knowledge by reading IGNOU/NIOS notes. You do not need to read them cover to cover, just read through the relevant chapters that are a part of the UPSC economy syllabus.
Cover Previous Year Questions: Next, it is important to glance through previous year question papers to get a clear understanding of the type of questions that are asked in the exam.
Cover Basic Books: Next, you need to cover the basic books like Indian Economy by Ramesh Singh and Indian Economy Key Concepts by Shankar Ganesh. These books are specifically written for CSE preparation, hence are very helpful in covering the entire syllabus very strategically.
Current Affairs: Current affairs play a very important role especially for economy subject as it covers the recent developments in Indian economy. Read “Economic Times” and “Business Standard” to cover the current affairs of economy portion for UPSC preparation.
Solve Mock Test: Mock tests are an extremely important element of UPSC preparation. Solve as many mock tests as you can, analyze your mistakes, amend them and repeat this process.
NCERTs (Class X, XI, and XII)
Indian Economy by Ramesh Singh.
Indian Economy: Performance and Policies by Uma Kapila.
Indian Economy Key Concepts by Sankarganesh Karuppiah
NIOS Notes and IGNOU notes
Some of the additional resources include The Hindu and Economic Times newspaper along with government publications like Yojna, Kurukshetra, and India Year Book.
This is a brief overview of the UPSC Economics Syllabus and preparation strategy of this subject for the Civil Services Examination.
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