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Economics Important Topics for UPSC Prelims 2025

vishal pathaniya October 21, 2024 07:55 320 0

Here is a list of important economics topics for UPSC Prelims 2025, focusing on key areas for GS Paper 1 to enhance your preparation strategy effectively.

Economics Important Topics for UPSC Prelims 2025

Economics Important Topics for UPSC Prelims: Economics is an important subject in the UPSC Prelims Examination, which individually forms a substantial portion of the General Studies Paper. As the UPSC Prelims 2025 exam approaches, every aspirant should focus on key areas within Economics to maximise their score. Understanding economic concepts, policies, and current affairs related to the economy is critical for cracking and qualifying for the exam. We have prepared this guide covering the Economics Important Topics for UPSC Prelims 2025, along with strategies on How to study economics for UPSC Prelims 2025.

Economics Important Topics for UPSC Prelims 2025

It is necessary to understand economics important topics for UPSC Prelims 2025 as it will help the candidates to cover the extensive syllabus effectively and tackle the questions confidently. Here are some key topics:

  • National Income: Definitions (GDP, GNP, NDP, NNP), methods of calculation (production, income, expenditure).
  • Real vs. Nominal GDP: Inflation impact and the concept of GDP deflator.
  • Per Capita Income: Trends in India’s per capita income, its growth, and challenges.
  • Economic Growth vs. Economic Development: Differences and indicators of development.
Click to know: Methods of Calculating National Income

How to study: Focus on understanding basic definitions and formulas. Stay updated on recent trends in GDP growth rates which are only published by the government.

2. Monetary Policy and Inflation

  • Monetary Policy: Role of the Reserve Bank of India (RBI), instruments like repo rate, reverse repo rate, CRR, SLR, and monetary policy tools.
  • Inflation: Types of inflation (CPI, WPI, core inflation), its causes, and measures to control inflation.
  • Monetary vs. Fiscal Policy: Differences and their role in economic stabilization.
Click to know: Monetary Policy and Inflation

How to study: Study recent RBI policies and what is their impact on inflation and interest rates. On the other hand, also read about monetary policy tools frequently used in India.

3. Government Budgeting and Fiscal Policy

  • Union Budget: Structure, key components (revenue, capital expenditure), types of deficit (fiscal, revenue, primary).
  • Taxation: Types of taxes (direct vs. indirect), Goods and Services Tax (GST), tax reforms.
  • Fiscal Responsibility and Budget Management (FRBM) Act: Objectives and its importance in controlling the fiscal deficit.
Click to know: Union Budget 2024-25 
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How to study: Candidates need to understand the key budgetary concepts, fiscal deficits, and tax reforms. They should follow the latest Union Budget to understand fiscal policies.

4. Banking System in India

  • Types of Banks: Commercial banks, cooperative banks, regional rural banks, and their functions.
  • Non-Banking Financial Companies (NBFCs): Their role in the economy.
  • Financial Inclusion: Initiatives like Pradhan Mantri Jan Dhan Yojana (PMJDY), Direct Benefit Transfer (DBT), and digital payment systems.
  • Basel Norms: Banking regulations and their significance.
Click to know: India’s Banking Sector And Monetary Policy

How to study: Learn the functioning of various banking institutions and the role of RBI as a regulator. Stay updated with current schemes related to financial inclusion.

5. External Sector

  • Balance of Payments (BoP): Current account, capital account, and balance of trade.
  • Foreign Exchange Reserves: Composition, importance, and trends in India’s forex reserves.
  • Exchange Rate Mechanism: Factors affecting the exchange rate and currency convertibility.
  • International Trade: Free trade agreements (FTAs), World Trade Organization (WTO), and their impact on India.
Click to know: Balance Of Payment and Exchange Rate Systems

How to study: Understand the key concepts of BoP and exchange rates. Study India’s trade agreements and their economic implications.

6. Poverty, Unemployment, and Human Development

  • Poverty in India: Poverty line, methods of measurement (Tendulkar, Rangarajan committees), government schemes for poverty alleviation.
  • Unemployment: Types of unemployment (disguised, structural, cyclical), unemployment rate in India, and steps taken by the government to address it.
  • Human Development Index (HDI): Components and India’s ranking in global indices.
Click to know: Poverty in India and Unemployment in India

How to study: Follow government schemes like MGNREGA and initiatives that aim at poverty reduction. Study reports published by international organizations like UNDP for HDI rankings.

7. Economic Reforms in India

  • Liberalization, Privatization, and Globalization (LPG): Impact of the 1991 reforms on India’s economy.
  • Disinvestment: Meaning, methods (strategic sale, minority stake sale), and recent examples of public sector disinvestment.
  • Atmanirbhar Bharat: Government’s vision of a self-reliant India, associated schemes, and sectors promoted.
Click to know: Liberalization, Privatisation, And Globalization (LPG)
How to study: Focus on post-1991 economic reforms, their long-term effects, and recent government initiatives promoting self-reliance.

8. Agriculture and Allied Sectors

Click to know: Agriculture In India

How to study: Analyze government schemes targeting agriculture and their impact on the farming community. Follow reforms and debates related to MSP and subsidies.

Economics Topic-Wise Questions for UPSC Prelims

For candidates who want to improve their preparation level, solving economics topic-wise questions for UPSC prelims is one of the most optimum options. Aspirants can also refer to the previous years’ questions, which are a goldmine for them to understand the exam pattern and the depth of questions. Here is a detailed list of topics from which questions are frequently asked:

  • National Income and GDP

  • Inflation and RBI’s Monetary Policy

  • Fiscal Deficits and Government Budgeting

  • Agriculture Schemes and MSP

  • Balance of Payments

  • Banking System and Financial Inclusion

Number of Economics Questions in UPSC Prelims

The number of economics questions in UPSC Prelims generally ranges from 15-20, depending on the year. The candidates can experience the questions covering both static and current aspects of the economy, which makes it essential for aspirants to prepare comprehensively. As we know, economics forms a significant part of the General Studies Paper, and focusing on economics important topics for UPSC Prelims becomes even more crucial.

Number of Economics Questions in UPSC Prelims

Year Number of Economics Questions
2024 15
2023 14
2022 15
2021 14
2020 19
2019 22
2018 21
2017 14

Economics Questions in UPSC Prelims 2024

The economics questions in UPSC Prelims 2024 have focused on government budgets, inflation trends, and national income concepts, among others. To effectively qualify, aspirants must practice extensively with previous years’ papers and stay updated with economic developments. Covering all economic topics for UPSC prelims 2025 will surely enhance the performance level of every aspirant.

UPSC Prelims Solved PYQs

Title Link
Economy Questions with Answers UPSC Prelims Economy PYQs

UPSC Prelims Question Paper 2024

Studying the UPSC Prelims Question Paper 2024 provides insights to candidates into the trends and weightage given to various topics, especially economics. Candidates can expect a good portion of the questions to be based on current economic events, fiscal policies, and government initiatives. Make sure to be well-prepared on the economics important topics for UPSC Prelims 2025 to tackle this subject efficiently.

Download UPSC Prelims Question Paper 2024 PDF

Prelims Question Paper 2024 Download Link 
General Studies Paper I (GS Paper) Click Here
UPSC Prelims Exam Analysis 2024 Click Here

How to Study Economics for UPSC Prelims 2025

Preparing for Economics Important Topics for UPSC Prelims requires a combination of understanding basic concepts, staying updated with current affairs, and practising regularly. Here are some of the significant and experimented tips, that will surely help the candidates to focus on How to study economics for UPSC prelims 2025:

  1. Understand Basic Concepts: Start with UPSC NCERT Notes to build a good foundation. These notes simplify complex topics and give candidates a clear understanding of fundamental economic concepts. For more in-depth insights, Candidates can also refer to NCERT Wallah Books.
  2. Stay Updated on Current Affairs: Economics in the UPSC Prelims exam often involves questions related to recent policies, schemes, and economic trends. Following UPSC Daily Current Affairs and UPSC Daily Editorials will help candidates stay informed about important economic developments. Additionally, candidates can subscribe to UPSC Current Affairs Magazine for a monthly roundup of all crucial updates.
  3. Access Online Notes: For quick revisions and topic-wise study, refer to UPSC Udaan Online Notes and UPSC Online Notes. These are concise, easy-to-follow notes that cover essential topics and can be accessed anytime for quick study sessions.
  4. Practice Regularly: As part of preparation, solve topic-wise questions and revise key concepts frequently. The UPSC Udaan Prelims Wallah offers an excellent resource for revising the most important topics and practising mock tests specifically tailored for UPSC Prelims.

Conclusion

Economics is a dynamic subject in the UPSC Prelims that requires a balance of conceptual clarity and current affairs. By focusing on the Economics Important Topics for UPSC Prelims, aspirants can effectively cover the syllabus and score well. Prioritize the above-mentioned topics, solve economics topic-wise questions for UPSC prelims, and stay updated with economic trends to boost the chances of success in UPSC Prelims 2025.

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Economics Important Topics for UPSC Prelims FAQs

The UPSC Economics Syllabus for Prelims includes topics such as economic growth and development, poverty, fiscal policy, demographics, and various social issues. Important concepts like national income, inflation, banking, and sustainable development are also covered.

In the last five years, the Indian Economy has had a weightage of about 15-20% in the UPSC Prelims exam.

Candidates can refer to the daily editorials and current affairs sections on PWONLYIAS, as well as the monthly magazine. Additionally, students can enroll in the PWONLYIAS Current Affairs Course.

NCERT books provide a strong foundation for IAS prelims, especially for subjects like economics. However, they need to be supplemented with advanced sources like standard reference books, current affairs, and mock tests. A balanced approach ensures better preparation for the exam.
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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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 Final Result – CIVIL SERVICES EXAMINATION, 2023.   Udaan-Prelims Wallah ( Static ) booklets 2024 released both in english and hindi : Download from Here!     Download UPSC Mains 2023 Question Papers PDF  Free Initiative links -1) Download Prahaar 3.0 for Mains Current Affairs PDF both in English and Hindi 2) Daily Main Answer Writing  , 3) Daily Current Affairs , Editorial Analysis and quiz ,  4) PDF Downloads  UPSC Prelims 2023 Trend Analysis cut-off and answer key

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
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Designed as per recent trends of Prelims questions
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