Economics upsc syllabus for mains and optional

Economics upsc syllabusUPSC (Union Public Service Commission) syllabus for the Economics optional exam consists of two papers: Paper-I and Paper-II.

Please note that there might have been updates to the syllabus after my last update, so it’s essential to verify the latest syllabus from the official UPSC website or other reliable sources. Below is the detailed for Economics upsc syllabus optional exam:

Economics syllabus

Paper-I: (Economics upsc syllabus)

1. Microeconomic Theory:

  • Consumer Behavior: Cardinal and ordinal approaches; Utility maximization and choice; Demand functions; Revealed preference theory and its applications.
  • Theory of Production and Costs: Production function; Laws of return; Scale and scope economies; Producer’s equilibrium; Factor markets and imperfect competition.
  • Price and Output Determination: Market structure – Perfect competition, Monopoly, Monopolistic competition, and Oligopoly; Pricing under different market structures; Collusive and non-collusive oligopoly; Product differentiation and advertising.
  • General Equilibrium and Welfare Economics: Partial and general equilibrium analysis; Arrow-Debreu model; Welfare economics and social choice; Market failures – externalities and public goods.

2. Macroeconomic Theory:

  • National Income Accounting: Concepts and measurement of national income; Methods of calculating national income; Real vs. nominal GDP; Applications of national income statistics; Circular flow of income.
  • Theories of Income and Employment: Classical, Keynesian, and Monetarist theories; Consumption function; Investment function; Multiplier and accelerator.
  • Determination of Aggregate Demand and Supply: IS-LM model; Aggregate demand and its components; Short-run and long-run aggregate supply; Phillips curve.
  • Money, Banking, and Inflation: Functions of money; Quantity theory of money; Demand for money; Central banking and its functions; Inflation and its types; Causes and control of inflation.
  • Fiscal and Monetary Policy: Tools and objectives of fiscal and monetary policy; Fiscal deficit and its impact; Banking reforms in India; Role of RBI in the economy.
monetary-policy-vs-fiscal-policy image
Image Source – JAVATpoint

3. International Economics:

  • Theory of International Trade: Comparative cost theory; Hecksher-Ohlin theory; Gains from trade; Tariffs and non-tariff barriers; Trade negotiations and disputes; World Trade Organization (WTO).
  • Balance of Payments and Foreign Exchange Market: Components of balance of payments; Foreign exchange rates – determination and types; Exchange rate systems; Convertibility of rupee.
  • International Capital Movements: Foreign direct investment (FDI) and portfolio investment; Capital account convertibility; Capital control and its implications.
  • International Trade Policy: India’s foreign trade policy; Export-import policy; Trade agreements and regional trade blocs; India’s trade relations with major countries and regions.

Paper-II: (Economics upsc syllabus)

1. Indian Economic Development:

  • Planning in India: Objectives, strategies, and achievements of planning; Five-year plans; NITI Aayog and decentralized planning.
  • Agriculture and Rural Development: Green revolution and its impact; Agricultural subsidies and their implications; Agricultural marketing and price policy; Land reforms; Rural credit and institutions; Rural development programs.
  • Industrial Policy and Performance: Industrial licensing and deregulation; Public and private sectors in industry; Small-scale and cottage industries; Special Economic Zones (SEZs) and their role in industrial development.
  • Infrastructure and Investment: Role of infrastructure in economic development; Energy, transportation, and communication infrastructure; Investment policies and Foreign Direct Investment (FDI).
Imagesource – Indiabriefing

2. Indian Financial System:

  • Financial Markets: Money market and capital market; Primary and secondary markets; Stock exchanges and securities trading; Mutual funds and other financial instruments.
  • Banking and Non-Banking Financial Institutions: Functions and roles of commercial banks, cooperative banks, and development banks; Non-Banking Financial Companies (NBFCs) and their significance.
  • Insurance and Pension Funds: Insurance sector reforms and regulations; Pension funds and their importance in social security.
  • Budgetary and Fiscal Policies: Structure and components of the budget; Taxation policies and their impact on the economy; Fiscal responsibility and budget management.

3. Social Sector Initiatives:

  • Poverty and Unemployment: Concepts and measurement of poverty and unemployment; Poverty alleviation programs and their effectiveness; Employment generation schemes.
  • Human Development: Human Development Index (HDI) and its indicators; Education and health indicators; Government initiatives for human development.
  • Education and Health: Status and challenges in education and health sectors; Government policies and programs in education and health.

4. Sustainable and Inclusive Growth: (Economics upsc syllabus)

  • Sustainable Development: Concepts of sustainable development; Environmental challenges and policies; Climate change and India’s response.
  • Inclusive Growth and Social Issues: Inclusive growth strategies and their importance; Social issues like gender inequality, child labor, and child rights.

5. Current Economic Issues:

This section aims to test the candidate’s awareness of current economic issues and trends at the national and international levels. Questions may be based on recent developments, economic policies, and ongoing debates.

Economics upsc syllabus Guidance

It’s crucial to thoroughly study the topics mentioned in the syllabus, understand key economic concepts, and keep abreast of current economic developments to excel in the UPSC Economics optional exam.

Since the syllabus and patterns can be subject to change, it’s advisable to refer to the official UPSC website or relevant notifications for any updates or changes in the syllabus for the Economics optional exam.

Additionally, consider referring to standard economics textbooks, research papers, and study materials to build a comprehensive understanding of the subject.

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