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UPSC Economics Syllabus 2024, Prelims and Mains Economic PDF

UPSC Economics Syllabus 2024: The UPSC Economics Syllabus holds significant importance in the selection process, as it is examined in all stages of the UPSC Syllabus for examination, including the prelims, mains, and interview rounds. The optional economics paper consists of two papers, Paper 1 and Paper 2, each carrying 250 marks, making a total of 500 marks. Scoring well in this subject can greatly impact the candidate’s overall performance and ranking in the Mains merit list. One notable aspect of the UPSC Economics Syllabus is its accessibility to candidates from diverse academic backgrounds, be it arts or science.

UPSC Economics Syllabus 2024

UPSC Economics is also the part of official UPSC Syllabus. Economics is a crucial component of both the Prelims and Mains examinations in the UPSC. UPSC Economics Syllabus is an integral part of the General Studies 3 paper in the Mains, and it is also among the optional subjects available for candidates. With its presence throughout the different stages of the IAS exam, Economics has become a favored choice among aspirants. The UPSC questions pertaining to Economics will focus on contemporary developments, international trade, agricultural issues, transportation, and other related topics. Familiarity with these areas is essential for candidates aiming to excel in the UPSC examinations.

UPSC Economics Syllabus 2024 for Prelims

It consists of various important topics that candidates should focus on during their preparation. These topics include Economics, Social Development, Poverty, Sustainable Development, Demographics, Social Sector Initiatives, and more. The questions asked in the Prelims examination can range from moderate to challenging in terms of difficulty. Therefore, it is crucial for candidates to thoroughly cover the significant areas outlined in the UPSC Economics Syllabus for Prelims. These areas include understanding concepts related to

  • Economic Growth and Development
  • Poverty
  • Inclusion
  • Demographics
  • Fiscal Policy
  • Social issues
  • trending news related to these subjects.

UPSC Economics Syllabus 2024 for Mains

It covers a wide range of topics that delve into various aspects of economics, both at the national and international levels. The syllabus is designed to test the candidate’s knowledge and understanding of economics theories, policies, and their practical applications.

Areas to Focus

  • Indian Economy and issues relating to planning, mobilization of resources, development, growth, and employment.
  • Inclusive growth
  • Budgeting
  • Major cropping patterns in different parts of the country, different types of irrigation, transport, and marketing of agricultural produce and issues and associated constraints; e-technology for
  • Direct and indirect farm subsidies and minimum support prices; PDS- objectives, functioning, limitations; issues of buffer stocks, food security; economics of animal-rearing, Technology missions.
  • Food processing and related industries
  • Land reforms
  • Effects of liberalization
  • Infrastructure: energy, roads, ports, airports, and railways
  • Investment models

UPSC Economics Syllabus for Paper 1

  1. Advanced Micro Economics:

(a) Marshallian and Walrasiam Approaches to Price Determination.

(b) Alternative Distribution Theories: Ricardo, Kaldor, Kaleeki

(c) Markets Structure: Monopolistic Competition, Duopoly, Oligopoly.

(d) Modern Welfare Criteria: Pareto Hicks & Scitovsky, Arrow’s Impossibility Theorem, A.K. Sen’s Social Welfare Function.

  1. Advanced Macro Economics

Approaches to Employment Income and Interest Rate determination: Classical, Keynes (IS-LM) curve, Neo classical synthesis, and New classical, Theories of Interest Rate determination and Interest Rate Structure.

  1. Money – Banking and Finance:

(a) Demand for and Supply of Money: Money Multiplier Quantity Theory of Money (Fisher, Pique, and Friedman) and Keynes’s Theory on Demand for Money, Goals, and Instruments of Monetary Management in Closed and Open Economies. Relation between the Central Bank and the Treasury. Proposal for ceiling on the growth rate of money. (b) Public Finance and its Role in Market Economy: In stabilization of supply, allocation of resources, and distribution and development. Sources of Govt. revenue, forms of Taxes and Subsidies, their incidence and effects. Limits to taxation, loans, crowding-out effects, and limits to borrowings. Public Expenditure and its Effects.

  1. International Economics:

(a) Old and New Theories of International Trade

(i) Comparative Advantage

(ii) Terms of Trade and Offer Curve.

(iii)Product Cycle and Strategic Trade Theories.

(iv)Trade as an engine of growth and theories of underdevelopment in an open economy.

(b) Forms of Protection: Tariff and quota.

(c) Balance of Payments Adjustments: Alternative Approaches.

(i) Price versus income, income adjustments under fixed exchange rates,

(ii) Theories of Policy Mix

(iii)Exchange rate adjustments under capital mobility

(iv) Floating Rates and their Implications for Developing Countries: Currency Boards.

(v) Trade Policy and Developing Countries.

(vi) BOP, adjustments and Policy Coordination in open economy macro-model. (vii) Speculative attacks

(viii) Trade Blocks and Monetary Unions. (ix) WTO: TRIMS, TRIPS, Domestic Measures, Different Rounds of WTO talks.

  1. Growth and Development:

(a) (i) Theories of growth: Harrod’s model,

(ii) Lewis’s model of development with surplus labor

(iii) Balanced and Unbalanced growth,

(iv) Human Capital and Economic Growth.

(v) Research and Development and Economic Growth

(b) Process of Economic Development of Less developed countries: Myrdal and Kuzments on economic development and structural change: Role of Agriculture in Economic Development of Less developed countries.

(c) Economic development and International Trade and Investment, Role of Multinationals.

(d) Planning and Economic Development: the changing role of Markets and Planning, PrivatePublic Partnership

(e) Welfare indicators and measures of growth – Human Development Indices. The basic needs approach.

(f) Development and Environmental Sustainability – Renewable and Non-Renewable Resources, Environmental Degradation, Intergenerational equity development.

UPSC Economics Syllabus for Paper 2

Indian Economy in the Pre-Independence Era:

  • The land system in pre-independence India was characterized by various forms of land ownership and tenancy. The land was predominantly controlled by landlords and zamindars, who held large estates and collected rent from the tenants. The British introduced the zamindari system, where the zamindars acted as intermediaries between the peasants and the colonial administration.
  • During this period, the agriculture sector witnessed commercialization. The British encouraged the cultivation of cash crops like jute and cotton, which were primarily grown for export. This led to the transformation of agriculture into a profit-oriented activity, with an emphasis on market-oriented production.
  • The drain theory, popularized by Dadabhai Naoroji, argued that colonial rule resulted in the draining of India’s wealth to Britain through the exploitative economic policies imposed by the British government. These policies included heavy taxation, the export of raw materials, and the import of finished goods, which led to an unfavorable trade balance for India.
  • The laissez-faire theory advocated for minimal government intervention in economic affairs. However, in practice, the British government implemented policies that favored British interests and hindered the growth of Indian industries. The colonial government imposed tariffs and trade restrictions that protected British industries at the expense of Indian manufacturers.
  • The manufacturing and transport sector in pre-independence India saw the development of industries like jute and cotton. Jute was mainly produced in Bengal, while cotton mills were concentrated in regions like Bombay and Ahmedabad. The railways played a crucial role in facilitating the transportation of goods across the country and promoting economic integration.
  • Money and credit systems were also introduced during this period. The British established a unified currency system, replacing the various regional currencies. The introduction of modern banking institutions, such as the establishment of the Reserve Bank of India, contributed to the growth of credit and facilitated monetary transactions.

Indian Economy After Independence
1. The Pre-Liberalization Era:

  • Contributions of Vakil, Gadgil, and V.K.R.V. Rao: Vakil, Gadgil, and V.K.R.V. Rao were prominent economists who made significant contributions to shaping India’s economic policies Vakil focused on industrial planning, Gadgil emphasized on balanced regional development, and V.K.R.V. Rao contributed to the development of Indian planning and public finance.
  • Agriculture: Land reforms were implemented to address the unequal land distribution. The land tenure system was reformed to provide security of land rights to farmers. The Green Revolution, which involved the introduction of high-yielding crop varieties, irrigation, and the use of fertilizers, led to increased agricultural productivity. Capital formation in agriculture refers to the investment of savings into agriculture for future development.
  • Industry: The composition and growth of industries underwent changes during this period. The public sector played a significant role in key industries, while the private sector also contributed to industrial growth. Small-scale and cottage industries were promoted to generate employment and support rural economies.
  • National and Per Capita Income: Patterns and trends in national income and per capita income were analyzed. The composition of national income in different sectors and changes therein were studied.
  • Factors Determining National Income and Distribution: Various factors, such as investment, technology, labor, and infrastructure, were examined to understand their impact on national income and its distribution. Measures of poverty were developed, and trends in poverty and inequality were analyzed.

2. The Post-Liberalization Era:

  1. New Economic Reforms and Agriculture: The agriculture sector faced challenges due to the World Trade Organization (WTO) agreements, which affected agricultural subsidies, prices, and the public distribution system. The impact of public expenditure on agricultural growth was also studied.
  2. New Economic Policy and Industry: The strategy of industrialization underwent changes with an emphasis on liberalization, privatizationDisinvestments, the Role of foreign direct investment, and multinationals.
  • New Economic Policy and Trade: Intellectual property rights: Implications of TRIPS, TRIMS, GATS and new EXIM policy.
  1. New Exchange Rate Regime: Partial and full convertibility, Capital account convertibility.
  2. New Economic Policy and Public Finance: Fiscal Responsibility Act, Twelfth Finance Commission and Fiscal Federalism and Fiscal Consolidation.
  3. New Economic Policy and Monetary System. Role of RBI under the new regime.
  • Planning: From central Planning to indicative planning, Relation between planning and markets for growth and decentralized planning: 73rd and 74th Constitutional amendments.
  • New Economics Policy and Employment: Employment and poverty, Rural wages, Employment Generation, Poverty alleviation schemes, New Rural Employment Guarantee Scheme.

How to prepare for UPSC Economics Mains?

  • Start with NCERT textbooks: Begin by reading the NCERT textbooks for economics from classes X, XI, and XII. These textbooks provide a solid foundation and cover the basic concepts of economics.
  • Indian Economy by Ramesh Singh: This book is highly recommended for UPSC preparation. It covers various topics related to the Indian economy in detail and provides an in-depth analysis of economic concepts.
  • Indian Economy by Sanjeev Verma: Another recommended book, it offers a comprehensive overview of the Indian economy, including important topics and current trends.
  • Ministry websites: Visit the official websites of ministries related to water, power, finance, etc. These websites provide valuable information on government policies, schemes, and initiatives related to the economy.
  • Economic Survey: The Economic Survey is an annual publication by the Ministry of Finance that presents a detailed analysis of India’s economy. Read the latest Economic Survey and focus on the key findings, trends, and policy recommendations.
  • Budgets: Analyze the Union Budget and state budgets to understand the government’s fiscal policies, revenue generation, and expenditure priorities. Pay attention to key economic announcements and reforms.
  • Administrative Reforms Commissions (ARC) Reports: Study the recommendations of various ARC reports related to economic reforms and governance. These reports provide insights into policy changes and administrative improvements.
  • Press Information Bureau (PIB): Visit the PIB website regularly to stay updated on government policies, initiatives, and press releases related to the economy. Focus on economic news and policy announcements.
  • Newspapers: Read newspapers like The Hindu, The Indian Express, and Business Standard to keep yourself updated on current economic affairs. Pay attention to articles and editorials covering economic issues, reforms, and policy debates.
  • Previous year’s question papers: Solve previous years’ economics questions from the UPSC Mains GS Paper III. This will help you understand the question pattern, the depth of knowledge required, and the application of economic concepts in the context of current events.
  • Remember, while studying economics, it is essential to have a clear understanding of both theoretical concepts and their practical application. Analyze the impact of government policies, initiatives, and economic reforms on different sectors of the economy. Develop a habit of critically evaluating economic issues and forming well-reasoned opinions.
  • Regular revision, note-making, and practice through mock tests will further enhance your preparation. Additionally, it is advisable to join online forums or coaching programs to discuss economic concepts and clarify any doubts you may have.
UPSC Optional Syllabus 2024
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Civil Engineering– UPSC Syllabus 2024 Chemistry- UPSC Syllabus 2024

UPSC Economics Syllabus 2024, Prelims and Mains Economic PDF_3.1

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What is the UPSC Economic Syllabus?

The UPSC (Union Public Service Commission) Economic Syllabus is a comprehensive outline of the topics and concepts that candidates need to study for the UPSC examinations, specifically for the economics subject. It covers various aspects of economics, including microeconomics, macroeconomics, international economics, public finance, economic development, and Indian economy.

What are the main topics covered in the UPSC Economic Syllabus?

The UPSC Economic Syllabus covers a wide range of topics, including economic concepts and theories, economic systems, national income accounting, inflation, poverty, unemployment, fiscal policy, monetary policy, international trade and finance, economic growth and development, agriculture, industry, infrastructure, banking, financial institutions, and economic reforms in India.

Will UPSC syllabus change in 2024?

The exam pattern, UPSC 2024 syllabus, and selection process are expected to be the same as in previous years. UPSC 2024 notification will be released on 14th February 2024 by the Commission on its official website, and the last date to apply online will be 05 March.

Is economics scoring in IAS?

It is a scoring subject if understood well. Choosing economics as an optional subject can cover about 60% of the UPSC syllabus for GS paper III, providing a significant overlap. Also, in the prelims paper, you can easily score at least 30 marks from this subject.

Which is best for UPSC geography or economics?

Ultimately, the choice between economics and geography depends on your interests, strengths, and career aspirations. Both subjects can be valuable for the UPSC examination, so it's important to choose the one that aligns with your passions and abilities. People often have many criteria to choose the optional.

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