Why To Focus More on the Indian Economy?

• Economics is a challenging subject in UPSC due to the requirement of high conceptual clarity and understanding of economic terms.
• However, once we master these concepts and terms the subject becomes one of the easiest subjects in the prelims to score higher marks consistently.

HOW TO prepare Indian Economy ▶️ Watch Video HERE

 Trend of Indian Economy in Prelims 

• This subject consistently contributes 15-20 questions (30-40 marks) in Prelims.
• UPSC is going for application-based questions.
• RBI and its monetary tools, budgets and financial inclusion remain repeated areas.
• Questions from Economic Survey and government schemes are asked almost every year.

Most Important Topics of Economy for Prelims

Static Topics

National Income Accounting

• • GDP, GNP, NNP, NDP
  • Real and Nominal GDP
  • GDP Deflator

Historical perspective of Indian Economy 

• • Sectoral Reforms
  • Economic Reforms post LPG

Banking and Financial System

• • RBI: Functions
  • Commercial Banks and NBFCs
  • Monetary Policy, Instruments and their effects on economy
    • Repo, Reverse Repo, SLR, CRR
  • Basel Norms
  • Digital Banking, UPI, CBDC (Digital Rupee)
  • Schemes on Financial Inclusion: PMJDY, Mudra, SIDBI
  • Money Market vs. Capital Market

Inflation

• • Different types – Deflation, Disinflation, Skewflation, Stagflation, etc.
  • CPI and WPI + their components and Impacts
  • Monetary Policy and Fiscal Policy + their tools to control inflation

External Sector of India

• • Exports and Imports
  • Balance of Payments and recent questions on it
  • Capital Account Vs Current Account
  • FDI
  • Foreign Exchange Reserves and Regimes
  • International Organisations

Government Budgeting and Fiscal Policy

• • Revenue and Capital – Expenditure and Receipts
  • Components of Budget
  • Fiscal Policy – Taxation and Expenditure

Sectors of Indian Economy

• • Agriculture – Status, share in GDP and employment, Government Schemes, PDS, etc.
  • Industry/Manufacturing – IPR resolutions and provisions, current status and schemes
  • Services sector – current status and schemes

• Budget and Economic Survey
• Government Schemes in News

Current Affairs Topics

— To be discussed

Best Sources of Economy for Prelims

For Static

• NCERT – Macroeconomics and Indian Economy
• Indian Economy by Vivek Singh
• PYQ discussions by Strive Edge IAS

For Current Affairs

• PIB – Ministry of Finance
• Monthly Magazines of Strive Edge IAS
• Budget Documents
• Economic Surveys

Tips for Preparing Economy for UPSC Prelims 

• Build a solid base in Economy for UPSC Prelims by focusing first on core concepts and then on rigorous practice.

Conceptual foundation

• Develop a strong understanding of fundamental topics like GDP, inflation, and especially monetary policy, which is asked repeatedly in the exam.
• Give priority to conceptual clarity in every area of economy, even if it takes extra time; do not compromise on basics at any stage.

Understanding economic impacts

• Learn the real-world implications of policy moves, for example: what changes when the RBI cuts the repo rate, or how the economy is affected when the Indian rupee depreciates.

Reports and organisations

• Keep track of major reports and indices published by international bodies such as the UN, WTO, UNCTAD and others, as questions on these appear frequently.

Practice and PYQs

• Regularly practice a large number of economy questions to test and refine your understanding.
• Solve at least the last 10 years’ previous year questions (PYQs) of Economy to grasp UPSC’s pattern and depth of questions.

Thank You!