UPSC Economics Syllabus 2023: Economics is one of the popular optional subjects in the UPSC mains exam. Going by the last 3 year’s statistics, approximately 200-300 candidates choose Economics as their optional subject, and the success rate varies between 10-15%. Aspirants choose UPSC Economics optional subject as endless resources are available to prepare well for this subject, and its syllabus overlaps with GS papers of prelims and mains exam.
So, aspirants should thoroughly check the Economics Syllabus for UPSC to match the exact exam requirements. As per previous exam analysis, it is reported that the questions asked in Economics optional subjects are medium level.
In this blog, we have shared the detailed UPSC Economics syllabus Pdf along with the preparation strategy and best books for the ease of the aspirants.
UPSC Economics Syllabus 2023 PDF
The Economics optional syllabus comprises two papers, i.e., Paper I and Paper II. Each paper carries 250 marks making it a total of 500 marks. Aspirants must adhere to the UPSC Economics syllabus and use the best books to develop conceptual clarity. Download the topic-wise UPSC Economics syllabus PDF for both papers from the link below.
UPSC Economics Syllabus for Paper I
The UPSC Economics Syllabus for Paper I covers topics i.e. Advanced Micro Economics, Advance Macro Economics, Money-Banking and Finance, International Economics, and Growth and Development. Check the subject-wise UPSC Economics Paper I syllabus below.
- 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.
- 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.
- 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 the growth rate of money.
(b) Public Finance and its Role in a market economy: in the stabilisation of supply, allocation of resources and 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.
- 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.
- 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 capital 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: the 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.
UPSC Economics Syllabus for Paper II
The UPSC Economics Syllabus for Paper II covers topics, i.e., Indian Economy in Pre-Independence Era and Indian Economy after Independence. Check the subject-wise UPSC Economics Paper II syllabus below.
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:
- 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 the 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.
- 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 industrialisation, 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 decentralised 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 the UPSC Economics Syllabus 2023?
Economics is one of the most popular choice subjects among the past UPSC toppers. Aspirants must familiarize themselves with the UPSC Economics syllabus to know the topics that can be asked in the exam. Check the best UPSC Economics preparation strategy shared below to excel in the subject.
- Understand the latest Syllabus: Go through the updated UPSC Economics syllabus to study the topics that can be asked in the exam.
- Clear Basic Concepts: The next tip is to develop conceptual clarity of all the topics specified in the exam syllabus. It will help them to understand advanced-level topics easily,
- Previous Year Papers: Practice UPSC Economics’s previous year’s papers to understand the exam requirements and topics from which most of the questions are asked in the exam.
- Attempt Mock Tests: Candidates must attempt mock tests and sample papers to track their performance. It will allow them to identify their strong and weak areas and prioritise the topics that require improvements.
- Revise Notes: Aspirants must create short notes for all the topics/chapters when covering them. Short notes will be helpful in last-minute revision.
Booklist for UPSC Economics Syllabus
Many UPSC Economics books and resources are available in PDF versions and bookstores for exam preparation. The right books, study materials, and online study material will help them cover all the aspects of the UPSC Economics Syllabus. Check the list of UPSC Economics books for both papers to prepare for the exam.
- Indian Economy Key Concepts by Sankarganesh K
- Indian Economy by Uma Kapila
- Indian Economy by Ramesh Singh
- The Indian Economy by Sanjiv Verma
- Datt and Sundaram’s Indian Economy
