Understanding the Strategy for Preparing Economics for UPSC 2020 Prelims

The Union Public Service Commission (UPSC) Prelims examination is a rigorous test for aspirants seeking to join the Indian Administrative Service (IAS) and other prestigious civil services.

The Trend of Economics Questions in UPSC Prelims

If you observe the trend of questions related to economics in UPSC Prelims, it typically ranges between 12 to 15 questions. These questions are designed to test your understanding of current and relevant economic issues. This readability and focus on contemporary issues are significant for preparation.

Key Points to Remember

Part 1: The Nature of UPSC Economics Questions

UPSC is not fond of complex statistics, so memorizing data is not advisable. Rather, focus on understanding trends and patterns. Review previous years' question papers (PYQs); many questions are repeated in different forms. Depth is not the priority; a basic understanding of topics is sufficient.

Part 2: Important Topics for Economics in UPSC Prelims

Several topics are crucial for comprehensive preparation. Here, we discuss the most important ones.

1. National Income Accounting

Understanding the methods of measuring national income and the components of the national accounts (like GDP, NNP, etc.) is important. Focus on the sources of national income and how to interpret these metrics.

2. Inflation, Fiscal Policy, Monetary Policy, and Balance of Payments

Learn the mechanisms of inflation control and the role of central banks. Understand fiscal policy and how it influences economic growth. Know the functioning and role of the Reserve Bank of India (RBI). Keep track of the balance of payments, including current account, capital account, and trade balance.

3. Basics of International Organizations

Learn about the World Bank (WB), International Monetary Fund (IMF), World Trade Organization (WTO), and United Nations Conference on Trade and Development (UNCTAD). Be aware of the reports and agreements these organizations conduct and issues they focus on, such as G-33 and G-77.

4. Finance Commission and Major Recommendations

Although the relevance of Finance Commission questions has reduced, it is still important to understand the principles and themes of different economic plans.

5. Inclusive Growth and Demographic Dividend

Focus on the concept of inclusive growth and how demographic changes influence the economy. Understand the demographic dividend and how it contributes to economic growth.

6. Basic Economic Glossary

Learn terms like equity, debt securities, bull, and bear markets. No need to delve deeply into intricacies, but understanding these terms is essential.

Part 3: Additional Resources and Recommendations

Committees and Their Reports

Review the reports and recommendations of important committees. This is a source of potential questions and topics for discussion in the exam.

Government Schemes and Budget

Stay updated with government schemes and the annual budget. These are common areas from where questions are often sourced.

By following these strategies and focusing on these topics, you can enhance your preparation for the economics portion of the UPSC Prelims effectively. Regular revision and understanding of current economic trends will help you navigate the test successfully.