How To Prepare Economics For UPSC? - Follow This Strategy! (2024)

How to Prepare Economics for UPSC? – Most aspirants in the Civil Services Exam are concerned with the preparation of the subject Economy. When compared to other subjects of the UPSC IAS Exam Syllabus, the Indian Economy is one of the most difficult. The UPSC CSE Main exam includes a General Studies III subject on the Indian economy. It is also included as an optional subject in the UPSC mains exam stage. Because GS Economy is more technical than other topics, many applicants find it challenging to cover the economics syllabus. To prepare for Economics, Candidates must focus on current economic changes, trends, terminology, critical factual data, and national policies.

In this article, we will understand “how to prepare economics for upsc?“ with adetailed strategy for Economics prelims and mains preparation. Let's begin!

What Do You Need For UPSC Economics Preparation?

The Economics subject is highly vital and significant in terms of the UPSC exam. Confusion over concepts, theories, and questions are constantly an obstacle in the preparation of topics of the Economy. Any country’s economy serves as the foundation for its growth and development. As a future bureaucrat, you should have a solid understanding of how the Indian economy operates.

The following points should be considered while preparing for Economics subject for UPSC exams:

• To begin, aspirants must understand fundamental economic terms such as GDP, REPO, Reverse REPO, Cash reserve ratio (CRR), Statutory liquidity ratio (SLR), inflation indexes, Growth, Inclusion, Development, etc.
• UPSC aspirants should relate these principles with day-to-day events which are part of current affairs.
• The UPSC CSE Mains GS III paper assesses the candidate’s knowledge in this area.
• Aspirants should study the previous year questions and understand the pattern of the questions asked in the UPSC examination.
• Candidates should follow a comprehensive strategy and study resources for the IAS Prelims and Mains Economics subject.
• Candidates who choose Economics as an optional subject for the UPSC Mains Examination must study the topics thoroughly in addition to understanding the fundamentals of the Indian economy and economic principles.
• Candidates should be familiar with the Indian economy because the economics questions in the Prelims test are conceptual in nature.
• The selection of resources should be based on the analysis of the economics questions being asked previously by the UPSC.

Check theUPSC Economics Optional Syllabus here!

How To Prepare Economics For UPSC?

The UPSC Economics Syllabus involves application-based knowledge of core ideas, economic trends, and current financial and economic concerns, as well as awareness of how to approach questions based on these topics.

• Aspirants should choose appropriate economics books and resources that would cover the whole Economics Syllabus for UPSC Prelims and Mains.
• Although economic NCERTs are necessary for understanding the principles, they are insufficient for understanding the UPSC Economics Syllabus.
• The most important thing aspirants should consider while preparing for Economics is that they should have conceptual clarity of all topics. Besides, the application of these concepts should be done wherever possible.
• For example, we consider the concept of “Inflation”, questions that have been asked in both Prelims and Mains exams.
  • Prelims Question: A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?(2011)
    • (a.) It is the impact of drastic deficiency in supply due to the failure of crops
    • (b.) It is the impact of the surge in demand due to rapid economic growth
    • (c.) It is the impact of the price levels of the previous year on the calculation of the inflation rate
    • (d.)None of the statements (a), (b) and (c) ‘given above is correct in this context

• • Mains Question: Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments.[2019]

Check out the Top IAS Interview Questions here.

UPSC Economics Preparation Strategy For Prelims

The UPSC IAS Prelims Syllabus includes the Indian Economy as one of its core subjects. GS Economy is more technical than other subjects and necessitates the use of a thorough approach. For the UPSC Exam preparation, NCERTs are essential yet insufficient, especially for a dynamic topic like Economics. The majority of exam questions are concerned with current affairs talking about the nation and the world.

Following is the strategy to prepare for economics for the UPSC prelims exam:

• Understand Economics Syllabus: As the first and most significant stage in preparing for Economics for the UPSC CSE(Civil Service Examination), aspirants must be conversant with the UPSC Syllabus for the relevant course.
• Select important Economy topics for UPSC Prelims: Aspirants should shortlist the important topics that are asked frequently in UPSC preliminary examination. For example, some of the Important areas to focus on in the UPSC Economy Prelims Syllabus are Economic and Social Development, Economic growth, Inclusion, Demographics, Poverty, Fiscal policy, Social issues, etc.
• Limit The resources:For Economics, aspirants should begin with the NCERT texts for Class 11 and 12 to develop a sound theoretical foundation. After that, they can read Ramesh Singh’s Indian Economy.
• Focus on Value Addition: Students should read the Economic Survey and Union Budget after finishing the core books to understand the recent trends in the Indian economy. Make a list of relevant reports, rankings, and economic institutions.
• Economics Current affairs: Read economics-related current affairs, government programmes, and initiatives on a regular basis during your preparation.
• Analyze and Practice Economics Previous Year Questions: After you’ve refined your skills, go over the previous year’s UPSC CSE Prelims questions.
• Revise the core economic topics before the exam: Revise the topic on a regular basis to ensure you recall all of the important concepts throughout the exam.

Apart from this, candidates can also check out the following video playlist for UPSC Economics Preparation for the Prelims stage.

Also Read

UPSC Economics Preparation Strategy For Mains

The UPSC Economics syllabus for mains is featured in General Studies Paper III. Candidates are sceptical about the approach and study resources for the Economics subject of the IAS Mains examination.

Aspirants can follow the below strategy to prepare economics for UPSC Mains Exam:

• Complete Mains Syllabus: The complete IAS syllabus should be read thoroughly. Aspirants should read essential works such as Ramesh Singh’s Indian Economy and Shankar Ganesh’s Indian Economy Key Concepts.
• Practical application of Concepts: The UPSC Economics Syllabus includes more than just core definitions; it also involves an application-based understanding of key ideas as well as knowledge of how to approach problems based on these themes.
• Understand and Analyze the topics: The UPSC Economics syllabus for mains is covered in General Studies Paper III, which covers the topic of Economic Development. To ace the UPSC Mains exam, concentrate on these topics:
  • Indian Economy and issues relating to planning, mobilization of resources, development, growth, and employment.
  • Inclusive growth
  • Budgeting
  • Major cropping patterns in different parts of the country,
  • different types of irrigation, transport, and marketing of agricultural produce and issues and associated constraints;
  • e-technology for Direct and indirect farm subsidies and minimum support prices; PDS– objectives, functioning, limitations;
  • issues of buffer stocks, food security; economics of animal-rearing, and Technology missions.
  • Food processing and related industries
  • Land reforms
  • Effects of Liberalization
  • Infrastructure: Energy, Roads, Ports, Airports, and railways
  • Investment models
• Limit the sources: The source from which you are reading is the second most critical aspect of your preparation. Always remember that little is more. Instead of getting lost in a sea of resources, stick to a few sources for your preparation.
• Focus on Revision: Revising the broad economy syllabus is the most crucial aspect for UPSC.
• Make crisp Notes: Remember to take notes when studying the syllabus. Remember that notes are not replicas of what you are studying, but rather an extremely concise summary of what you are learning.

Also, study How to prepare for UPSC at home? here!

Important Topics To Prepare Economics For UPSC

The first and most essential step during UPSC Economics preparation is to become familiar with the UPSC Syllabus.The Indian Economy requires distinct techniques for Prelims and Mains.

• The Indian economy is covered in the General Studies Paper in Prelims, with a particular emphasis on budget allocation and recently established programmes.
• The UPSC Mains syllabus specifically mentions aspects of the Indian economy such as planning, resource mobilization, growth, development, employment, government budgeting, cropping patterns, public distribution system, technology missions, food processing, land reforms, liberalization, infrastructure, and investment models.

The UPSC syllabus covers important topics of the Economy mentioned in the table below:

Also, know the UPSC Mains Strategy here!

Study Material To PrepareUPSC Economics Optional Subject

The resources and booklist for the optional economics course are mentioned below. You do not, however, have to read all of these books. Choose the ones that you are most comfortable with. Also, be extremely syllabus specific and read only the relevant portions of your economics optional syllabus.

Check the list of important books for UPSC Economics Preparation below:

• Indian Economy – Ramesh Singh
• The Indian Economy – Sanjiv Verma
• Indian Economy – Mishra and Puri
• Indian Economy – R. Dutt and KPM Sundaram
• Banking – S.B. Gupta
• Dictionary of Economics – Graham Bannock; T.E. Baxter, Ray Rees
• Economic Growth and Development – Mayer and Baldwin
• Economic Survey: Twelve Five Year Plan: New Industrial Policy – Government of India
• Money Supply in India: Concepts, Compilation and Analysis: Functions and Working – Reserve Bank of India
• Economical and Political Weekly

How Do You Revise Economics For UPSC?

A revision strategy that is sustained over time must be based on subject knowledge. When studying economics for the UPSC Exams, aspirants must clearly comprehend the approach, model it, and utilize it.

Following are some of the tips for revising economics for UPSC:

• Creating mental maps and diagrams: Drawing images, diagrams, and mind maps may be useful for revision. You might use color or construct patterns out of your notes.

• • Memory aids: To help you recall things, use memory aids such as flash cards and mnemonics. Flash cards are very beneficial when you need to memorize a big amount of information.
  • Taking down notes: You should take smart and concise notes to make revision easier. Examine your papers and take brief notes for the exam.

• Short Study breaks: Brief study periods followed by short naps are thought to be one of the finest strategies to learn while revising. Because the brain absorbs information while sleeping, a topic that has been well-reviewed will be simpler to recall if you sleep on it.

How To Make Economics Notes For UPSC?

• The Indian Economy Notes can be compiled from a variety of sources, including NCERT Books for UPSC, Economics Books for UPSC, Newspapers, Economic Surveys, Budgets, and so on.
• Current events are essential to the economics paper. Following successful UPSC journals and magazines is a great way to stay current.
• It is not tough to prepare economics notes for UPSC if the proper approach is taken and attention is shown. The approach includes the steps such as making crisp notes, using mnemonics, categorizing notes according to the topics etc.
• Again, very superficial questions are asked from Economics based on national and international events, but you must know them in order to answer them.
• Concentrate on comprehending ideas such as Niti Aayog, GST, Money Supply, Tax Structure, LPG Reform, Human Growth, Inflation, GDP, and Banking.
• These are the major economic issues, and the questions you will be asked will be related to one of them or the other.

Also, read - How to make NCERT notes for UPSC?

Tips For Economics Answer Writing in Mains Exam

• Writing easy-to-understand answers is essential for success on the UPSC exam. The examiner becomes perplexed by complex wording, which lowers the quality of your response.
• While preparing for the Mains, read the curriculum of each topic in detail and have a solid understanding of the GS subjects.
• Use the margins to your advantage as you read the material. In the margins, note important details and keywords.
• The UPSC Mains question papers are lengthy, and you must write quickly in order to complete the paper properly. The key to answering these questions is to practice writing quickly and accurately.

Economics Questions Trend Analysis

Trends are more significant to understand the coverage of Economics for UPSC Prelims and Mains exams. It helps aspirants to analyze the pattern and themes of Economy topics asked in UPSC exams and prepare accordingly.

Trend Analysis for UPSC Prelims

• In the UPSC Prelims Exam, the economy portion is the simplest, most well-scored section, and on average, 16 questions are drawn from it.
• The cut-off score for the General Category aspirants in the UPSC Prelims 2021 examination was determined to be 87.54. You can obtain a good 28 to 30 marks out of the cut-off marks by answering almost all of the economy questions correctly.
• Basic comprehension would be sufficient for the UPSC’s questions because they are not very complex.
• Each year, six to seven questions are based on the fundamentals of national income accounting, inflation and deflation, monetary policy, fiscal policy, taxes, CAD, fiscal deficit, BOP, and other topics.
• Understanding this collection of simple economics topics is crucial for answering these kinds of inquiries.

Trend Analysis for UPSC Mains

• In 2013, the UPSC modified the Mains exam’s syllabus and schedule, increasing the number of general studies (GS) exams from two to four. GS Paper 3 of them focuses on economics and related ideas.
• The mains examination contains questions on the subjects and issues that were emphasized in the economic survey. Such initiatives include the “demographic dividend,” “inclusive growth,” “Make in India,” and “poverty alleviation.”
• On average, 4-5 questions are asked from Economy in UPSC General Studies Paper 3. The following image shows an analysis of economics questions asked over the past 5 years:

Prepare Economics for UPSC with Testbook SuperCoaching

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Conclusion

Only about 15% of candidates who apply each year are successful in passing the UPSC Civil Service Main Examination, so passing it is no easy feat. It takes enough knowledge of the major topics to successfully answer an economic question in a UPSC examination. Preliminary and main exams on the Indian economy require distinct methods. The structure and character of the questions would become more apparent if we look at the questions from the Indian Economy area for Prelims and Mains. To answer the majority of the questions, you must have a conceptual grasp of the subject of economics and the Indian economy. To do well in the UPSC Economy exam, aspirants must be prepared with the concepts and statistics of important themes of the economy.

We hope this article about “how to prepare economics for UPSC” helps you with a detailed understanding of the scope and extent of the Economics subject. To study more topics for UPSC, download the Testbook App now!