October 12th, 2019       Civil Services Preparation, UPSC

THE PRELIMS PAPERS OF THE LAST 5 YEARS HAVE NEARLY 10-30% QUESTIONS RELATED TO ECONOMICS. Over the past three years the level has remained around 30%. The importance of Economics can be judged by the fact that in 2017 prelims (cutoff was around 105), around 60 marks portion was from this single section and it was very doable!!!

YET, Economics may be a hard nut to crack for some given that the questions are based on conceptual clarity. Aspirants develop a fear psychosis, and speak the usual refrain, “We have no background in the subject…don’t understand anything…so do not read the newspaper and are not able to attempt many questions in exam”…

HOWEVER, truth is that with a sound foundation of conceptual clarity coupled with its application and memorization of certain key facts, one can attempt correctly almost all questions from this section.

Keeping the above in mind, an aspirant requires a coherent strategy to able to cover this portion. The article aims to chart a roadmap for the aspirants so that they do not find themselves going off the tangent….

Trend Analysis

Economics (Number of questions asked and difficulty level)

Economics Trend Analysis

To analyze further, the 2019 paper can be divided as:

  • Banking and finance-7 questions
  • Budget and taxation-1 questions
  • BOP, Trade-7 questions
  • Infrastructure-3 question
  • Schemes-2 questions
  • Sectors-8 questions

Decoding The Sources

Decoding Economics

Approach

5 THINGS TO KEEP IN MIND…

  • GET YOUR BASICS AND FACTS RIGHT
  • MAKE YOUR OWN NOTES
  • PRIORTIZE YOUR PREPARATION BY IDENTIFYING IMPORTANT AREAS
  • LINK WITH CURRENT AFFAIRS AND ALWAYS KEEP ECONOMICS DICTIONARY/ WEBSITES like investopedia AT HAND
  • PRACTISE PREVIOUSLY ASKED QUESTIONS

Strategy

  • First and the most important aspect- to be thorough with the basics. The best strategy is to build a solid foundation by doing the NCERT books (start with class 9th, then 10th, then Indian Economic development and finally the 12th class ncerts).
  • Once the foundation has been laid, try to correlate the concepts learned with your newspaper readings.
  • Now that you have developed confidence, go through the budget and economic survey to get acquainted with core concepts, definitions and terminologies.
  • Next get acquainted with current affairs-this part is mostly direct and factual. One should cover different schemes, policies, economic data, institutions/bodies, indices, rankings, economic data and government and other important reports eg: NITI Aayog.
  • Having achieved the above mentioned, comes the most important and the most confusing portion- APPLIED ECONOMICS. The most lucid strategy here is to apply the concepts that you have learned in steps 1 to 4 in real time. And the best way to do so is to connect the current affairs with the core economic principles.

Focus Areas

A. Introduction to economics-concepts related to

  • Macroeconomics
  • Microeconomics
  • Growth and development
  • National Income Accounting
  • Poverty, employment
  • Sectors of economy
  • Different economic systems
  • Planning

PYQ-2013: The national income of a country for a given period is equal to?

B. Growth and development

  • Poverty
  • Different indicators
  • Committees
  • Employment
  • Issues with poverty and employment
  • Inequality
  • Demographic dividend and skill development

PYQ-2013: Disguised unemployment generally means

C. Inflation and Business cycle

  • Types
  • Causes
  • Impact
  • Measurements
  • Role of government and rbi
  • Fiscal and monetary policies

PYQ-2011: What is base effect?

D. Money and banking

  • RBI
  • Types of banks, their functioning
  • Banking reforms, committees
  • Money market
  • Capital market
  • Regulators like SEBI etc
  • Concepts like FDI, FPI, FII, QIPs, currency swap, IDR, GDR etc

PYQ-2014: what are the facilities the beneficiaries can get from services of Bank Saathi?

E. Fiscal related

  • Budget
  • Taxation
  • Finance commission
  • GST, FRBM act
  • Financial stability, reforms
  • Regulators
  • Economic reforms- LPG, Disinvestment, SEZ

PYQ-2014: Which of the following is covered under Non-plan expenditure?

F. Planning

  • How planning has evolved?
  • Five year plans
  • Institutions like NITI Aayog etc

PYQ-2014: the main objective of 12th plan is?

G. PSUs and Industries

  • Structure
  • Reforms
  • Acts, policies
  • Corporate governance
  • Labor reforms

PYQ-2011: Why is government disinvesting its equity in CPSEs?

H. External Sector

  • India’s foreign trade policy
  • Balance of payments
  • External borrowings, debt
  • Account convertibility
  • Acts like fera, fema, mrtp
  • Appreciation, depreciation, devaluation of currency
  • Foreign exchange rates, reserves
  • Different agreements-CEPA, CERCA, FTA, PTA, Custom union
  • EU, Euro zone
  • Crisis like 2008 financial crisis, brexit, great depreciation etc
  • Policies like GAAR
  • International bodies-IMF, WTO, World Bank
  • Groupings like ASEAN, APEC, G groupings etc

PYQ-2014: what constitutes the current account?

I. Agriculture and services Sector

Agriculture already covered with geography section.

J. Miscellaneous

  • Current affairs
  • Survey, budget of the year
  • Reports
  • Rankings, indices
  • Economic data
  • Schemes and policies

PYQ 2018: World Justice Report, PMKVY, National Food Security act.

The best solution lies in de-jargonizing economics. Keep the strategy simple, build conceptual clarity, memorize the facts and revise and re-revise and attempt as many mocks as possible to ace this section!!!

Keep your eyes and ears open and enjoy your readings 🙂

Contact Location

 Salt Lake

 Elgin Road

 Jaydev Vihar

Stay In Touch

Design & Marketing By : Suvaance