UPSC IAS Prelims 2024: Most Important Questions & Answers on Economics

UPSC IAS Prelims 2024: Most Important Questions & Answers on Economics. Aspirants must note that the UPSC 2024 exam notification will be released on 14 February 2024, and the Prelims exam is scheduled for 26 May 2024.

From learning the basics of the economy to five-year plans, monetary and fiscal policy, Economics covers a wide array of different sections. After a key analysis of the previous years’ papers, we have observed that questions related to RBI and its functioning has been frequently put in the paper. Terms related to banking and the economy are important. Monetary Policy, Economic Survey, Budget are a crucial part of the Economy Syllabus. You can access important questions on all these topics of Economics from the links.

Indian Economy (GS) for IAS Prelims and Mains

Chapter 1- Growth and development

  • Economic Growth in India: National Income Determination, GDP, GNP, NDP, NNP, Personal Income
  • Economic Growth versus Economic Development
  • Measures of Economic Development: Human Development Index, Green GDP, Gross National Happiness Index
  • Economic and Social Development in India: Millennium Development Goals
  • Sustainable Development Goals and India

Chapter 2- Issues related to planning 

  • Issues related to planning in India
  • Planning in India: Bombay Plan; People’s Plan; Mahalanobis Plan; Wage-Good Model; Gandhian Plan
  • Mobilization of Resources

Chapter 3- Inflation

  • Inflation in India: CPI, WPI, GDP Deflator, Inflation Rate
  • Types of Inflation: Demand Pull, Cost-Push, Stagflation, Structural Inflation, Deflation, and Disinflation
  • The Cost of Inflation

Chapter 4- Monetary policy in India

  • Monetary Economics: Barter System, Definition, Function and Evolution of Money
  • Monetary Policy in India: Inflation, deflation, Recessionary and Inflationary Scenarios
  • Monetary Policy tools and Money Supply in India
  • Monetary Policy Agreement in India

Chapter 5- Banks & Financial markets

  • Banking in India: Definition, Functions, and Types of Banks
  • Development Finance Institutions: IFCI, ICICI, SIDBI, IDBI, UTI, LIC, GIC
  • Nationalisation of Banks
  • Banking Sector Reforms in India: Narasimhan Committee 1&2, Nachiket Mor Committee, P J Nayak Committee
  • Problem of Non Performing Assets in India
  • Non-Banking Financial Companies in India
  • Financial Inclusion in India: Need and future; PMJDY; Payment Banks and Small Banks

Chapter 6- Indian Agriculture

(a) Historical background and current status

  • Land reforms in India
  • Situation of Indian Agriculture

(b) Cropping Patterns

  • Cropping Patterns in India: Factors Affecting; Most Important Cropping Patterns
  • Types of Cropping Systems: Mono-cropping; Crop Rotation; Sequential Cropping; Inter Cropping; Relay Cropping

(c) Issues related to direct and indirect farm subsidies and minimum support prices

  • Farm Subsidies in India: Definition; Working; Need; Negative Impacts
  • Types of Farm Subsidies in Indian Agriculture: Irrigation and Power Subsidies; Fertilizer Subsidy; Seed Subsidy; Credit Subsidy
  • Government Intervention in Indian Agriculture
  • Minimum Support Prices in Indian Agriculture: MSP definition; Working; Issues; Drawbacks; Way Ahead; Buffer Stocks
  • Public Distribution System in India: Definition; Issues; Working; Need; Disadvantages
  • Targeted PDS in India, Antyodaya Anna Yojana (AAY), Alternative to the PDS, Direct Benefit Transfers, National Food Security Act

(d) Agriculture Marketing

  • Marketing of Agricultural Produce in India: Definition; Role; APMC Act, Model APMC Act, 2003
  • Private and Co-operative Sector in Marketing of Agriculture Produce in India

(e) Technology missions and e-technology in the aid of farmers

  • Technology Missions in India
  • E-Technology in Indian Agriculture to Aid the Farmers 

Chapter 7- Poverty, Inequality, and Unemployment

(a) Poverty

  • Poverty in India: Types of Poverty, Causes of Poverty, Vicious Circle of Poverty
  • Poverty Lines in India: Estimations and Committees
  • Poverty in India: Trickle Down Approach, Inclusive Growth and Multi-Dimensional Poverty Index
  • Addressing Poverty in India/Poverty Eradication Schemes

(b) Inequality

  • Inequality in India: Definition and Measures; Lorenz Curve, Gini Coefficient, Income held by Top 10%
  • Income Inequality in India: Causes, Remedies, and Consequences

(c)  Unemployment

  • Unemployment in India: Definition, Types, and Measures
  • Unemployment in India: Causes and Consequences
  • Jobless Growth in India: Reasons and Consequences

(d) Other important issues

  • Economics of Animal Rearing in India
  • Government Policies towards Women Empowerment: Beti Bachao Beti Padhao, SSA, Kasturba Gandhi Balika Vidyalaya, Saakshar Bharat, SABLA, STEP
  • Education in India: Role and Channels in Promoting Economic Growth

Chapter 8- Government budgeting

  • The Role of the Government in the Economy
  • The Government Budget: Revenue Budget, Capital Budget, Government Deficits
  • Budgetary procedure in India
  • Types of Budgets in India

Chapter 9-Taxation in India

  • Taxation in India: Classification, Types, Direct tax, Indirect tax
  • Goods and Services Tax
  • Tax Reforms in India
  • Concept Related to Taxation: Tax Incidence, Tax Evasion, Laffer Curve, CESS and Surcharge

Chapter 10-External sector

  • India’s Balance of Payments: Current Account, Capital Account, Goods and Services Account
  • India’s BOP Performance: Balance of Payment versus Balance of Trade, Current Account versus Capital Account
  • FDI and FPI in India, External Commercial Borrowings, Foreign Exchange Reserves in India
  • Foreign Exchange Rate Determination in India and Types of Exchange Rate
  • Capital and Current Account Convertibility in India

Chapter 11- International economic organizations

  • The Bretton Woods Twins- World Bank and IMF
  • Bilateral, Regional and Global Groupings and Agreements involving India
  • The World Trade Organisation (WTO) and India

Chapter 12-Food processing & related industries

  • Food Processing Industry: Definition and Dimensions; Channels of Transitions; Inter linkages between Agriculture and Industry
  • Food Processing Industry: Food Based Industry versus Non- Food Based; Location, Upstream, Downstream Requirements
  • Food Processing Industry: Forward, Backward Linkages; Food Processing Industry and Economic Development
  • Food Processing Industry in India: Growth Drivers, FDI Policy, Investment Opportunities; Schemes Related to Food Processing Sector
  • Supply Chain Management in Indian Agriculture

Chapter 13-Industrial sector

  • Industrial development in India
  • Industrial Policy in India and its effects on growth
  • Public sector undertakings in India
  • Privatisation of the Public Sector Enterprises

Chapter 14-Infrastructure

  • Infrastructure Sector in India: Definitions; Growth and Infrastructure Linkage
  • Infrastructure Development in India
  • Infrastructure Sector in India: Growth Drivers; Government Policy Initiatives
  • Road Transport in India
  • Civil Aviation Sector in India
  • Railways Sector in India
  • Recent Initiatives by the Railways
  • Telecommunication Sector in India
  • Notable Initiatives of Indian Telecom Sector
  • Port sector in India
  • Energy and Power Sector
  • Government Policy Support for the Energy Sector

Chapter 15-Investment model

  • Investment Models: Public Sector Led Investment Model; Private Sector-Led Investment Model
  • Public-Private Partnership Model: Definitions; Need for PPP; Prerequisites.
  • Public-Private Partnership Models: Contracting, Build Operate Transfer, Design Build Finance Operate (DBFO), Concessions, Build Operate Transfer, EPC Model, Swiss Challenge Model, HAM Model

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Topic-wise Important Questions on Economics:

➙ Composition & Structure of Indian Economy
➙ Economic Growth & National Income
➙ Poverty & Unemployment
➙ Planning
➙ Indian Agriculture
➙ Money & Banking
➙ Industrial Policy 
➙ Fiscal Policy 
➙ Inflation

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