Any UPSC Prelims aspirant is expected to possess sufficient knowledge about the Indian economic structure and framework. The subject also encompasses knowledge about the current sustainable trends governing the economy and the events that impact and influence the country’s economic behavior. This subject is considered to be among the toughest papers in UPSC Prelims and Mains Curriculum. Since this paper is general knowledge, practical and conceptual understanding oriented, texts are difficult to come by in reference books and mock question papers. Therefore the aspirant needs to have a clear understanding and a strong base of knowledge concerning the Indian Economy and how it has shaped up over the decades and post the Liberalization Era. Following tips and strategies would help an aspirant find guidance in Economics and help him prepare for UPSC Prelims 2021-

UPSC Prelims 2021 GS Economics Syllabus

The first step in the General Studies Paper of Economics preparation strategy in UPSC Prelims is to have a clear understanding and grasp of the syllabus concerning the subject. Once the aspirant gets an idea about the syllabus, he/she can dive into the depths of the subject and subsequently focus on the concepts, meanings, and implications of the terms used in Economics. Following is an overview of the Economics syllabus-

  • Economic and social development
  • Sustainable development
  • Poverty, initiatives in social sectors, demographics of the country
  • Finance, banking, budget, population composition, health and sanitation, international financial situations

Fiscal policy- 

  • Definition of the policy
  • Various characteristics of the policy
  • Components, receipts, revenue and capital account
  • Tax revenue
  • Expenditures
  • Influence on budget

Economic growth and development-

  • Basic concepts of economics and definition of economy
  • Transfer and uses of resources
  • Macro and microeconomic policies
  • The balance between micro and macroeconomics
  • Impact of economic policies on the distribution of wealth
  • What are the determinants of growth and development of the country from an economic point of view
  • Concepts of MPI/HPI, HDI, PQLI, GDI/GII, GEM, TAI
  • Green index
  • India’s position in various economic indices

Poverty-

  • Definition
  • Concept of distribution and deprivation
  • Causes of poverty
  • Concept of income and calories
  • Status and measurements of poverty
  • Different types of poverty eradication programs, and resource policies
  • Tribal rights

Inclusion-

  • Types of inclusion
  • Recent initiatives related to inclusion
  • Relevance 
  • Financial inclusion

Tips to Prepare for UPSC Prelims Economics

While preparing for the General Studies Paper of Economics in UPSC Prelims 2021, you must keep the following things in mind-

  • The first thing that you must keep in mind is that you should possess a clear understanding of the concepts of GST, Niti Aayog, Indian Taxation Structure, Indian Revenue Mechanism and the position of Banking Institutions of the country. The aforementioned ones are core concepts associated with the Indian Economic framework. Therefore possessing a clear understanding of the aforementioned concepts would help you attempt all the questions and answer them successfully. 
  • Objective Type Questions appear in the UPSC Prelims Examination of GS Economics. Therefore the candidate must possess an integral knowledge about the core economic concepts like Repo Rate, Cash Reserve Ratio, Statutory Liquidity Ratio and other Banking facets and terms which are related to the Indian Banking structure. 

Summary

Thus, Economics, a General Studies Paper in the UPSC Prelims Curriculum, must be read thoroughly with a clear conceptual understanding of the relevant topics. Economics being a practical subject demands clear-cut explanations and observatory statements on the movement of economic variables. For reference and guidance purposes, the NCERT Books on the Indian Economy are of massive help. 

Frequently Asked Questions (FAQs)

Why is Economics considered to be the toughest General Studies Paper in UPSC Prelims?

Since this paper is general knowledge, practical and conceptual understanding oriented, texts are difficult to come by in reference books and mock question papers. Therefore the aspirant needs to have a clear understanding and a strong base of knowledge concerning the Indian Economy and how it has shaped up over the decades and post the Liberalization Era.

How should you prepare Economics for UPSC Prelims 2021?

The first thing that you must keep in mind is that you should possess a clear understanding of the concepts of GST, Niti Aayog, Indian Taxation Structure, Indian Revenue Mechanism, and the position of Banking Institutions of the country. The aforementioned ones are core concepts associated with the Indian Economic framework. Therefore possessing a clear understanding of the aforementioned concepts would help you attempt all the questions and answer them successfully.

What objective type questions can you expect in the Economics paper of UPSC Prelims 2021?

Objective Type Questions appear in the UPSC Prelims Examination of GS Economics. Therefore the candidate must possess an integral knowledge about the core economic concepts like Repo Rate, Cash Reserve Ratio, Statutory Liquidity Ratio, and other Banking facets and terms which are related to the Indian Banking structure. 

What topics of Fiscal Policy should an aspirant focus on while reading Indian Economy?

Fiscal policy- 

  • Definition of the policy
  • Various characteristics of the policy
  • Components, receipts, revenue and capital account
  • Tax revenue
  • Expenditures
  • Influence on budget

Which books can you read for reference before UPSC Prelims?

For reference and guidance purposes, the NCERT Books on the Indian Economy are of massive help.