Below is the Syllabus-cum-notes that you need to understand and read before going through the questions whether it be for prelims or mains or even interview.
Understand the basics of economics including sectors of economy here primary sector, secondary sector, and tertiary sector. Know the difference between Microeconomics and Macroeconomics here. Then you need to understand how control of production, price fix and distribution determines what kind of economy it is. Based on the authority the state of economy can be capitalist or mixed.
MSMEs (Micro Small and Medium Enterprises) are the backbone of this nation as they provide jobs to large share of workforce. Understand how the MSME's are classified.
Then the basics of Goods and Services. Types of Goods such as Normal, Inferior and Giffen Goods. Then understand the different types of market such as Seller's Market, Buyer's market and Perfect Competition. Also, how Monopoly, Duopoly and Oligopoly is determined. There is a difference between Economic Growth and Economic Development. Understand the difference here.
Then cover the basics of Factors of production. Understand GDP and GDP Calculation using different methods. Also read the Personal Income, Personal Disposable Income and its calculation here. Nominal GDP is different from Real GDP and the most contentious issue is around the Base Year. Understand how the two are calculated and why Base year is so important for politics as well as economics.
Foreign Capital is very important in the development of any nation. It is therefore important to understand what an investment entails, what FDI is and what are the different kinds of FDI. Also, how it is different from FPIs. A very important part related to Capital and Taxation in international matters is DTAA or Double Taxation Avoidance Agreement.
Inflation is good if in very limited number. But when it grows beyond a number it creates bigger problems for economy. It is therefore, important to understand different types of inflation and what happens when it continues for a long period of time. Philip Curve is a relation between inflation and employment. Money illusion is different from Money Inflation. CPI and WPI are traditional methods of inflation. The new methods of inflation are PPI, SPI and HPI. CPI for Industrial Workers has been around since World War II. Also, keep awareness about the economic indicators and the organizations that publish it.
Tax is the major source of earning for government if not the only one. Understanding how taxation is done in India along with different types of taxes is important for any civilized person and for an aspirant it is a must. Duties are different from taxes. The important milestone in this regard has been the GST. Read more here.
Each country has to maintain record of imports and exports which is used to calculate Balance of Payment in Global economy. Understand BoP and its calculation here. Also, the role of World Bank and IMF and the differences between the two. Then read about the Exchange Rate System especially the Fixed and Floating Rate System.
Budget is how the government collects and distributes money and resources to get the best out of economy. There are multiple sources of revenue and so are the multiple ways of expenditure. Terms like Revenue Deficit, Fiscal Deficit, Ways and Means Advances, etc are important to know. FRBM act was one step in the direction of minimizing deficit.
Financial Market comprises of Capital and Money Market. There are different participants of each market. IPOs, Venture and Angel Investors are quite in news these days. Recently, the Settlement days is moved from T+2 to T+1 settlement days. Understand all of it here.
Economics is not just with one country but is dealt at international level especially with so much of Cross Border Movements either of physical goods or virtual services. In this regard read about the Cross Border Modes of Trade. Also, understand the origin of GATT (International Agreement on Trade), World Trade Organization. Also, see what constitutes Tariff and Non-Tariff part of trade. Then understand the MFN status and what it entails. Read through the Uruguay, Nairobi and Bali rounds. Understand the different boxes such as Green Box, Amber Box under the Article of Agreement. Keep a tab of TRIPS and what comes under TRIPS as well as the different types of Trade Related Safeguards such as Copyright, Geographical Indicator, etc.
Additionally, read about Planning Commission and NITI Aayog and understand the differences here.
Poverty is one of the bigger socio-economic challenge for Government. In this regard, various committees have defined poverty levels. Also, various indices are defined to measure poverty at national and international level.
Agriculture forms the mainstay of Economy. UPSC specifically focuses on issues related to Agriculture. It is therefore important to know the evolution of agriculture in India and issues related to it.
When it comes to Agriculture, Land is the main resource in contention. Given the large land requirement to support the food needs of large population and also the social objective of bringing parity across farmers it becomes necessary to understand what Land Reform means. We need to look at Land reforms during Britishers time and the post independence measures. We also need to understand classification of farmers and there share in Indian Agricultural scene.
Similarly, we need to one important revolution here that is GREEN REVOLUTION and its unintended consequences. Then we need to read about MSP a very debated word in news for long time now. Understand how Public Distribution System Works. Read about Food Security Act of 2013 that is the largest government scheme of the world! Also, read about Food Processing, its scope in India.
Subsidies is one way government compensates those in the lower strung of society. Read about Subsidies here.
Quick Highlight of Budget of 2021-22 here. Budget is an important document and so is Economic Survey. Reading the summary of both is very useful both from Prelim and Mains perspective.
MAINS QUESTIONS FROM PREVIOUS YEARS.
INDIAN ECONOMY And issues relating to planning, mobilization of resources, growth, development and employment.
The nature of economic growth in India in described as jobless growth. Do you agree with this view? Give arguments in favour of your answer. |
Craze for gold in Indians have led to a surge in import of gold in recent years and put pressure on balance of payments and external value of rupee. In view of this, examine the merits of Gold Monetization Scheme. |
“Success of ‘Make in India’ programme depends on the success of ‘Skill India’ programme and radical labour reforms.” Discuss with logical arguments. |
While we found India’s demographic dividend, we ignore the dropping rates of employability. What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain. |
INCLUSIVE GROWTH And issues arising from it.
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion. |
Comment on the challenges for inclusive growth which include careless and useless manpower in the Indian context. Suggest measures to be taken for facing these challenges. |
Capitalism has guided the world economy to unprecedented prosperity. However, it often encourages shortsightedness and contributes to wide disparities between the rich and the poor. In this light, would it be correct to believe and adopt capitalism driving inclusive growth in India? Discuss. |
With a consideration towards the strategy of inclusive growth, the new companies bill, 2013 has indirectly made CSR a mandatory obligation. Discuss the challenges expected in its implementation in right earnest. Also discuss other provisions in the bill and their implications. |
Government Budgeting
Women empowerment in India needs gender budgeting. What are the requirements and status of gender budgeting in the Indian context? |
In what way could replacement of price subsidy with Direct Benefit Transfer (DBT) change the scenario of subsidies in India? Discuss. |
What are the reasons for introduction of Fiscal responsibility and Budget Management (FRBM) act, 2003? Discuss critically its salient features and their effectiveness. |
What is meaning of the term tax-expenditure? Taking housing sector as an example, discuss how it influences budgetary policies of the government. |
Discussion the rationale for introducing Good and services tax in India. Bring out critically the reasons for delay in roll out for its regime. |
^A first-salary gift to parents is that heady concoction of pride, gratitude, and a declaration of financial independence.
History has been witness to a situation in which fiat money (paper) continued to be used as currency despite the country becoming stateless – Somalia’s currency, the shilling, continued to be exchanged for goods in the market, even as the Somalian government broke down and the country became stateless in 1991.
Effects of Liberalization On the economy, changes in industrial policy and their effects on industrial growth.
How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country? |
Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth of services vis-a-vis industry in the country? Can India become a developed country without a strong industrial base? |
Foreign direct investment in the defence sector is now said to be liberalised. What influence this is expected to have on Indian defence and economy in the short and long run? |
Examine the impact of liberalization on companies owned by Indian. Are the competing with the MNCs satisfactorily? |
Discuss the impact of FDI entry into multi-trade retail sector on supply chain management in commodity trade pattern of the economy. |
Though India allowed foreign direct investment (FDI) in what is called multi brand retail through joint venture route in September 2012, the FDI even after a year, has not picket up. Discuss the reasons. |
Infrastructure and Investment models - Energy, Ports, Roads, Airports, Railways, etc.
What are ‘Smart Cities? Examine their relevance for urban development in India. Will it increase rural-urban differences? Give arguments for Smart Villages’ in the light of PURA and RURBAN Mission. |
Justify the need for FDI for the development of the Indian economy. Why there is gap between MOUs signed and actual FDIs? Suggest remedial steps to be taken for increasing actual FDIs in India. |
There is a clear acknowledgement that Special Economic Zones (SEZs) are a tool of industrial development, manufacturing and exports. Recognizing this potential, the whole instrumentality of SEZs requires augmentation. Discuss the issues plaguing the success of SEZs with respect to taxation, governing laws and administration. |
The right to fair compensation and transparency land acquisition, rehabilitation and resettlement act, 2013 has come into effect from 1 January 2014. What implication would it have on industrialisation and agriculture in India? |
National urban transport policy emphasizes on moving people instead of moving vehicles. Discuss critically the success of various strategies of the government in this regard. |
Explain how private public partnership agreements, in longer gestation infrastructure projects, can transfer unsuitable liabilities to the future. What arrangements need to be put in place to ensure that successive generations’ capacities are not compromised? |
Adaptation of PPP model for infrastructure development of the country has not been free from criticism. Critically discuss the pros and cons of the model. |
#'Foods travel more than the people who eat them'.
$ send a horse to US and it will convert into racehorse.– same should now happen with India..
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