UPSC Economics Syllabus 2024

PAPER—I 

1. Advanced Micro Economics : 

(a) Marshallian and Walrasian Approaches to Price determination. 

(b) Alternative Distribution Theories : Ricardo, Kaldor, Kalecki. 

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

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

2. Advance 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. 

3. Money-Banking and Finance : 

(a) Demand for and Supply of Money : Money Multiplier Quantity Theory of Money (Fisher, Pigou and  Friedman) and Keynes’ 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 growth rate of money. 

(b) Public Finance and its Role in market economy : in stabilization of supply, allocation of resources  and in distribution and development. Sources of Government 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. 

4. 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. 

5. Growth and Development: 

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

     (ii) Lewis model of development with surplus labour. 

     (iii) Balanced Unbalanced Growth. 

     (iv) human capitals and Economic Growth. 

     (v) Research and Development and Economic Growth.  

(b) Process of Economic Development of less developed countries: Myrdal and Kuznets 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: changing role of Markets and Planning, Private-Public  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. 

PAPER-II 

Indian Economy in Pre-Independence Era : 

Land System and its changes, Commercialization of agriculture Drain theory, Laissez faire theory  and critique. Manufacture and Transport: Jute, Cotton, Railways, Money and Credit. 

Indian Economy after Independence : 

A. The Pre-Liberalization Era :

    (i) Contribution of Vakil, Gadgil and V.K.R.V. Rao. 

    (ii) Agriculture: Land Reforms and land tenure system, Green Revolution and capital formation in  agriculture. 

    (iii) Industry Trends in composition and growth, Role of public and private sector, Small scale and  cottage industries.

    (iv) National and Per capita income : patterns, trends, aggregate and Sectoral composition and  changes therein. 

    (v) Broad factors determining National Income and distribution, Measures of poverty, Trends in  poverty and inequality. 

B. The Post Liberalization Era : 

    (i) New Economic Reform and Agriculture: Agriculture and WTO, Food processing, subsidies,  Agricultural prices and public distribution system, Impact of public expenditure on agricultural  growth. 

    (ii) New Economic Policy and Industry: Strategy of industrialization, Privatization, Disinvestments,  Role of foreign direct investment and multinationals. 

    (iii) New Economic Policy and Trade: Intellectual property rights : Implications of TRIPS, TRIMS,  GATS and new EXIM policy. 

    (iv) New Exchange Rate Regime: Partial and full convertibility, Capital account convertibility. 

    (v) New Economic Policy and Public Finance : Fiscal Responsibility Act, Twelfth Finance  Commission and Fiscal Federalism and Fiscal Consolidation. 

    (vi) New Economic Policy and Monetary system. Role of RBI under the new regime. 

    (vii) Planning: From central Planning to indicative planning, Relation between planning and  markets for growth and decentralized planning: 73rd and 74th Constitutional amendments. 

    (viii) New Economic Policy and Employment: Employment and poverty, Rural wages, Employment  Generation, Poverty alleviation schemes, New Rural, Employment Guarantee Scheme. 

How to Prepare Economics for UPSC?

Preparing for economics in the UPSC Civil Services Examination requires a structured approach. Here are some steps to help you prepare effectively:

1. Understand the Syllabus: Familiarize yourself with the UPSC Economics syllabus. This will help you identify the specific topics you need to cover.

2. Quality Study Material: Use reliable textbooks and study materials for economics. Some recommended books include “Indian Economy” by Ramesh Singh and “Economic Development” by Class 11-12 NCERT.

3. Current Affairs: Stay updated on current economic developments, both in India and globally. Newspapers, magazines, and online sources are valuable for this.

4. Understand Economic Concepts: Develop a strong understanding of key economic concepts, theories, and models. Be clear about topics like microeconomics, macroeconomics, and international economics.

5. Practice Solving Problems: Economics involves quantitative aspects. Practice solving numerical problems and economic calculations.

6. Make Notes: While studying, create concise and well-organized notes. This will help in quick revisions.

7. Previous Year Papers: Solve previous year’s question papers to understand the exam pattern and types of questions.

8. Case Studies: Analyze real-world case studies related to economic issues, policies, and challenges.

9. Time Management: Allocate specific time slots for economics in your study schedule. Stick to your plan.

10. Group Discussions: Engage in group discussions and debates on economic topics. This can enhance your understanding and communication skills.

11. Online Resources: Explore online courses, video lectures, and forums related to economics for additional learning.

12. Mock Tests: Take mock tests and practice questions regularly to assess your progress.

13. Revision: Regularly revise what you’ve learned to retain information effectively.

14. Current Affairs Analysis: Analyze current economic issues critically and relate them to theoretical concepts.

15. Seek Guidance: If needed, consider joining coaching classes or seeking guidance from experienced mentors.

16. Stay Committed: Consistency and dedication are key to success. Stay motivated throughout your preparation.