Economics strategy for UPSC IAS prelims. If one is preparing for UPSC civil services examination then economics is an unavoidable part of the preparation both in prelims as well as in the mains. Also, topics from economics and related current developments are asked frequently the personality test. Given the importance, the subject has in various stages of UPSC Civil Services exam, it is imminent to give extra importance to this subject. In this article, we will discuss the best way to approach Economics for UPSC Prelims Examination.
Strategy to Prepare Economics for UPSC Prelims
Relevance of Economics for UPSC IAS Exam:
Economics constitutes a basic part for the preparation of Civil Services exam which has their relevance in every stage of the IAS Exam. The number of questions being asked on this subject in the prelims exam is quite significant and clearing prelims without the proper understanding of this subject becomes difficult. Below is the marks weightage in IAS Prelims exam.
The Economics syllabus for preliminary examination consists of
- Economic & Social Development-Sustainable Development, Poverty, Inclusion, Social Sector Initiatives, Demographics etc.
For detailed syllabus of Economics for Prelims and Mains Click Here
It is essential to strategize the study of economics, the best way to structure the preparation is to divide the study of economics into two steps:
- Step 1 Conceptual understanding of the topics this can be covered by reading the basic NCERTs extensively and understanding terms such as GDP, Repo rate, Reverse repo rate, CRR SLR, inflation, deflation, growth, development, inclusive growth, financial inclusion, human development and so on. Being well versed with the concept is also essential because of late UPSC prelim papers have been asking questions on the same.
- Step 2 Consists of the application of conceptual understanding. In this, an aspirant has to apply her conceptual understanding while studying newspapers magazines etc. For instance when the newspaper talks about the RBI reducing its repo rate then an aspirant must be able to brainstorm its impact on the economy. Such as it would lead to increased lending and investments.
- Before 2011 questions on economics were more of fundamental and traditional nature where a candidate was able to fetch good marks just by reading and remembering the basic definitions from standard textbooks but the nature of the questions has changed since. Now questions are not directly asked from the textbooks but they are derived from the concepts given in the books and mostly these concepts are intermingled with the recent current developments in the economy. for instance this year most of the questions from economics were not of the factual nature but we’ll interlink with two recent happenings.
Source for economics for UPSC
- NCERT Class 10 understanding economic development
- NCERT Class 11 Indian economic development
- NCERT Class 12 macroeconomics
- Annual Economic survey
- Annual financial budget
- One any one standard newspaper
- India yearbook
- Sanjiv Verma Indian economy
- Arthapedia for any definitional concept
To Download NCERT Books Click Here
Important topics to be covered while preparing economics:
- Basic Economic indicators such as national income production price index foreign trade population
- Features of the Indian economy
- Division of economic activities
- Different types of unemployment
- Different types of poverty measures to eliminate poverty different committees that have been set up to measure poverty
- population policy 2000
- census 2011
- Consumption patterns such as energy consumption sources of energy and related issues
- National income
- Different methods to calculate national income such as expenditure method income method value-added method
- Concept of national income and related current issues
- Different crops and seasons
- Agriculture credit agencies nabard RRB Kisan credit schemes
- Land reforms
- Agriculture insurance and different schemes
- Different types of revolutions such as green revolution yellow white
- Irrigation projects their names different types of irrigation
- Developmental measures
- Different industrial policies and initiatives taken
- small scale industries various kind of industries and different committees and their recommendations
- industrial sickness
- industrial finance
- Money and banking
- RBI and its rules
- Different instruments used by RBI such as repo reverse repo SLR CRR, LAF
- Inflation deflation reflation
- New banking sector reforms
- insurance industry
- cooperative banks commercial banks NBFC
- SEBI and stock market development. concepts such as equity debt treasury bills, mutual funds, different instruments like sovereign gold bonds,etc. ADR GDR,
- Foreign trade
- Schemes Exim policy and other acts
- Bretton wood organisations such as the World Bank IMF
- WTO and related issues
- Asian Development Bank, BRICS Bank
- Balance of payment and related concepts
- Niti Aayog
- Five Year Plans and their important features
- Public finance
- Finance commission- composition, recommendations, criteria used for devolution of taxes
- Different types of tax- direct, indirect, values added, duty, tariff
- Current taxation reforms and recent happenings from the budget
- Public expenditure and debt
- FRBM act
- Deficit financing
Some other Tips:
- Economics is one subject where after attaining concept clarity an aspirant has to regularly update himself from newspapers and magazines.
- It is advised that the preparation of prelims and mains should be synchronized and should go hand in hand.
- Practising Tests is very important to avoid silly mistakes.
- Going through the Annual Budget and Economic survey is essential as direct questions from these documents have been asked.
There is no substitute for hard work. Concepts and topics can be only mastered with rigorous practice.
Check Economics Notes for UPSC
More from Us: