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Economy Notes for UPSC Prelims and Mains Examination

Economy notes for UPSC


An economy is a region where products and services are produced, distributed, traded, and consumed. It is generally understood to be a social domain that places an emphasis on the behaviours, discourses, and tangible manifestations connected to the creation, use, and management of finite resources. In other words, the economic realm is a social domain made up of connected human behaviours and exchanges that cannot exist independently.

Economy for UPSC

A country, a region, a single industry, or even a family may be represented by an economy. Few economies in the modern world are completely market- or command-based. While command-based economies are governed by a government agency, market-based economies, also known as free market economies, are self-regulatory. Check the links below for getting the all essential information’s based on economy required for UPSC and other competitive examination.

Economy Notes for UPSC

Mastering economics at UPSC is a crucial step toward success in one of India’s toughest examinations. Ensure you cover the key topics, use recommended study materials, and leverage notes to enhance your preparation. The following notes are essential reading materials for candidates preparing for a variety of examinations.

Basic Concepts

Economic Development in India

Planning and Economic Development

Economic Growth and Development



Services Sector

MSMEs Sector

  • Definition and Classification of MSMEs
  • Government Initiatives


Stock exchanges

Banking and Financial Institutions

Public Finance and Fiscal Policy

  • Budgeting and fiscal policy
  • Taxation and subsidies
  • Public debt and deficits

Tax System

External Sector

International Economic Organizations and Agreements

  • The Bretton Woods institutions
  • World Trade Organization (WTO)
  • Asian Infrastructure Investment Bank (AIIB)
  • Asian Development Bank (ADB)
  • New Development Bank (NDB)/ BRICS BANK
  • Bilateral and regional agreements

Money and Banking


  • Types and measurement of inflation
  • Causes and consequences of inflation
  • Inflation targeting

Poverty and Unemployment

Inclusive Growth

Food Processing Sector

  • Types of Food Processing
  • Segments in the Industry
  • Government Initiatives
    • National Food Processing Policy, 2019
    • PMFME Scheme: Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme
    • PMKSY: Pradhan Mantri Kisan SAMPADA Yojana for food processing
    • PLISFPI: Production Linked Incentive Scheme for Food Processing Industry
    • Operation Greens: Initiative to stabilize the supply of tomato, onion, and potato
    • ODOP Scheme: One District One Product Scheme to promote local specialities

Economic Survey and Budget

Current Economic Affairs

Economy Syllabus

The UPSC Economics Syllabus will be covered in both the Mains and Prelims exams. Additionally, it is listed in the UPSC Syllabus as one of the optional subjects. The UPSC Mains exam’s General Studies 3 paper contains the syllabus. Since economics is covered in all stages, it is one of the most popular optional subjects among candidates. The UPSC economics syllabus will include questions about current events, trade, agriculture, transportation, and other topics.

UPSC Economy Syllabus for Prelims and Mains

If you’re getting ready to take the UPSC civil services exam, you already know that economics will be covered in both the IAS prelims and the mains. Check the detailed Syllabus for economy below in the table:

UPSC Economy Syllabus for Prelims and Mains
Section  Details
Economic growth and development Basic concept and definition of economy and economics, uses and transfer of resources, distributive effects, macro and micro economic policy, micro-macro balance, distributive impact of economic policies, development versus growth, determinant of growth and development, concepts such as HPI/MPI, HDI, PQLI, GEM, GDI/GII, TAI, Green index, sustainable development, India’s ranking in the various indices.
National income and Basic Economic Indicators National income concepts, methods of calculation, price index, production, population, foreign trade
Features of Indian Economy Division of economic activities, poverty, unemployment, HDR, measures to eradicate poverty
Demography Census data, populations by gender, by state, by age group, socio-economic status, caste, religion, literacy levels, etc. Trends in human development – interstate comparison, etc.
Agriculture Crops, seasons, agricultural credit agencies, Kisan Credit agencies, land reforms, insurance, green, white, blue, yellow revolutions, irrigation
Industry Industrial policies (1948, 1956, 1991), small scale industries, key industries, industrial sickness, the different committees, disinvestment, PSU policy, industrial finance
Money and banking Money market, credit control (different rates), commercial banks, cooperative banks, NBFCs, committees, SEBI, stock market developments, insurance industry, new banking sector reforms, money supply measures, inflation, deflation
Fiscal policy Definition, component, receipts, revenue and capital account, tax revenue, expenditure, budget, finance commission, deficit financing, public spending and debt
Foreign trade composition, direction, EXIM policy, WTO, balance of payments, measures to improve foreign trade
International organisations WTO, IMF, ADB, BRICS Bank etc
Planning commission  five year plans Five year plans
Social issues Financing health policy, education policy, sanitation, drinking water, social security, infrastructure policy, international trade issues, regional cooperation
Inclusion Definition, relevance, types, financial inclusion, recent initiatives
Poverty Definitions, causes, distribution-deprivation, income versus calories, measurement of poverty, status of poverty, eradication programmes, poverty and resource policy, tribal rights and issues, livelihood mission.
Current Affairs Also, focus on issues currently in news related to the above topics – MNERGS, MSMEs, Make in India, industrial corridors, NITI Ayog, black money, international treaties and organisations, India’s policies with neighbours, Economic Survey and Budget.



What is an economy UPSC?

Economics is a social science that deals with the production, consumption, and distribution of goods and services, and the transfer of wealth.

How to prepare for UPSC economy?

UPSC aspirants should relate Economic principles with day-to-day events which are part of current affairs.

What are 3 types of economy?

Economic systems can be categorized into four main types are traditional economies, command economies, mixed economies, and market economies

Who is the father of Indian economy UPSC?

PV Narasimha Rao is referred to as the Father of Indian Economics. From 1991 to 1996, he served as India's ninth Prime Minister.

Is NCERT economics enough for UPSC?

NCERT economics is a great foundation, but it's not enough for the UPSC Civil Services Exam.

What is the weightage of economics in the UPSC Preliminary and Main Examinations?

Economics is a part of both the UPSC Preliminary and Main Examinations.

Which GS paper is for economics?

UPSC exams often include questions directly from NCERT books. So one should go through NCERTs.