Applied Economy For Civil Services Prelims and Mains Examination

Introduction: Being the most applied and dynamic part of General Studies starting from Prelims exam to interview, its growing importance for Civil service aspirants, goes without saying. It also plays a vital role in the day to day life of human beings. Therefore, the study of Economy always requires an updated, careful, clear, basic and comprehensive study. Though it is not a tough task but it has been felt that the majority of the aspirants try to make a distance due to lack of proper guidance which leads them to a fatal result. But, we have decided to convert it into a success story, provided that they could trust and follow our guidelines properly.


  1. Focused approach on the basic part of Economy which enable them to understand and to have a clear concept to about day to day global economic happenings.
  2. Complete coverage of entire course of study that has been incepted directly or indirectly in the syllabus of UPSC.
  3. Periodical seminar on the current economic issues.
  4. Seminar classes to solve individual problems.
  5. Regular objective and subjective test.

Strategy of Preparation Since each and every subject has its own nature and idea logical base and the way of study or the way of interaction is decided accordingly. As for as Economy is concerned it has a strong technical and theoritical base which makes it some what difficult to understand, at the initial stage. On the other hand it has a Guide Comprehensive applied part which is most dynamic and therefore it needs close and regular watch. Therefore, I could categorically say that the strategy of preparation with respect to economy always requires the following parameters

  • Formation of strong base and it could be possible only through class study and proper guidance.
  • Being interactive with the day to day economic events.
  • Application based understanding of the subject matter.
  • A holistic approach should be developed.


  1. The Hindu
  2. Yojana and Kurukshetra
  3. Economic Survey (Under proper guidance)
  4. India year Book (selected chapters)
  5. The Economic Timer/ The Financial express / The business Line (any one)
  6. The Frontline (selected articles or issues)
  7. All India Radio (Current Affairs Programmes)


Prelims Exam Only on Economy Numbers of questions / Year wise

  • 2011 – 34 out of 100
  • 2010 – 47 out of 150
  • 2009 – 31 out of 150
  • 2008 – 25 out of 150
  • 2007 – 18 out of 150

Note: It shows increasing role of economy in prelims.

Mains Exam :

Paper I – 30 marks questions based on the topics mentioned in the syllabus and even more marks are added if the number of quest. Based on Current issues are covered.

Paper-II – 90 marks based on the topics mentioned in the syllabus proposed by UPSC, covering almost all the topics. Range of word limit is 25 words to 250 words.

In fact, 120 marks questions out of 600 play vital role for deciding the final result and more over for the rank in the final result.
N.B. – If an aspirant takes interest in the study of economy he could be able to get a topic also for Essay for 200 Marks. It could be regarded as ‘BONUS’ being interactive with the study of Economy.

Lecture Topics :


  • General Introduction.
  • Economic Systems.
    • Capitalist Economy.
    • Socialistic Economy.
    • Mixed Economy.
  • Transformation of mixed Economy.
  • Effects of Globalisation and New economic reforms on mixed Economy.
  • Concepts of National Income
    • GDP, GNP, NNP, Green GDP
    • Methods of Measurement.
    • Sectoral analysis viz. Primary, Secondary & Tertiary
    • C.S.O., NSSO & NSC.
    • Limitations and Activities not included in the National Income.
    • COR, ICOR , Hindu growth rate etc.


Money and Banking

  • Concept of Money
  • Kinds of Money
  • Concept of Money Supply
  • Indian Financial system & Money Market
    • RBI – Structure work and Role credit control.
    • Structure of Banking in India
    • Current Schemes etc.


  • Concept , Kinds and Measurement
  • WPI & CPI
  • Fundamental & Immediate factors of Inflation
  • Analysis of Global effect (US,Sub – Prime).
  • PDS analysis

Capital or Stock Market

  • Structure – Primary & Secondary Market.
  • Companies and its capital
  • Stock Exchange and Share Index
  • Comprehensive analysis of Share Market.
  • SEBI and its Role.
  • Credit Rating


  • Fiscal system or Public Finance of India.
    • Fiscal Policy,
    • Budget – Structure, Kinds, Current Analysis
    • Taxation – Structure, Kinds, Reforms Principles & Current Review.
  • Concept of Deficit financing
    • Kinds of deficit
    • Analysis of Fiscal deficit
    • FBRM Act.
    • Effect of Economic Reforms.
    • Finance Commission. Module – 4
  • Concept and Model of Development
    • Balanced – Unbalanced – Trickle down & Big Push Model.
  • Difference between Development Report & growth.
  • Measurement of Development.
    • UNDP & Human Development Report Analysis.
  • Factors hampering to Development
    • Vig: Vicious Circle of Poverty; Spread & back – wash effects, etc.

Social Sector

  • Concepts or Poverty and its Measurement
  • Unemployment – Kinds
  • Running Programme for Social Sector.


Planning in India

  • Review of Five years Plan in India.
  • 11th five year Plan – strategy, objective & Financing etc.
  • Kinds of Planning.
  • Role of Planning Commission and NDC.
  • Effects of Globalisation on Planning Module – 6

Foreign Sector

  • Concept of Balance of Payment (BOP)
  • Structure of Balance of Payment (BOP)
  • Structure of Balance of Payment (BOP)
  • Government’s Endeavour for Controlling BOP
    • EPCGS, ECGS, SEZ, EPIP, etc.
  • Dumping


Foreign Investment in India

  • Kinds – FDI,FII & MNCs
  • Policy of Government.
  • Different Routs of Investment.

Foreign Exchange Policy

  • Convertibility of Money
  • Report of Tarapoore Committee
  • Devaluation – Conditions & Effects. Module – 8
  • Composition & Structure of Indian’s Foreign Trade.
  • Direction of India’s Foregin Trade
  • Exim Policy
  • Foreign Capital and Aid.
    • Its Role and Effect on Economy.


International Organisations

  • IMF, World Bank & WTO
  • Role of IMF in Indian Economy
  • Role of World Bank in Indian Eco. Module – 10
  • Different Aspects of WTO
  • Role of WTO in India with special reference to Globalisation.
  • WIPO and its role
  • Review of the India’s economic Interactions with the world.
  • Miscellaneous applied Topics will be Discussed
  • Specific Terminology Analysis.


Infrastructural Sector

  • Reform Programme since 1991
  • Different Programme & Projects run by Govt . vig. NHDP, JLNURM, IGSTPP etc.
  • National Water Policy.
  • Telecommunications.
  • Energy , Gas & Oil inflow. Module – 12

Industrial Sector

  • New Industrial policy
  • Small Scale Industry
  • Abid Hussain Committee Report.
  • Industrial Sickness
  • Public & Private Sector
  • Disinvestment
  • Effects of Globalisation


Agricultural Sector

  • Land forms
  • Crop Pattern in India
  • Irrigation Programme & System
  • Agricultural Marketing – NAFED, NCDC, etc.
  • Agricultural Financing & Micro Financing
  • Agricultural Price & Policy
  • Different schemes and Programmes started for Farmers/ Agriculture
  • Agricultural Revolutions
  • Second Green Revolution
  • Concept of Population
    • Theory of Demographic Transition
    • Theory of optimum population
  • Data Analysis


  • It will contain relevant Current Issues emerging before examination. The list of Topics would be decided on the right moment.


  • Comprehensive Test would be held on the similar pattern at the end of the Courses.

By : L.S. Mishra