Candidates who wish to opt for Economics as an optional subject in their civil services main exam should know the UPSC Economics syllabus 2023 thoroughly. The syllabus contains the chapters and topics from which the questions will be asked. It is necessary for the aspirants to study strictly according to the syllabus in order to secure good marks. Candidates with a background of finance, commerce, and related fields may find the syllabus much easier. In this post, we are providing the latest UPSC Economics Syllabus as per the norms of the board.
IAS Economics Syllabus 2023
The economics optional paper exam consists of two papers carrying 250 marks each. Paper – I include chapters like Advanced Micro Economy, Money banking, etc. On the other hand, paper – 2 has units like Indian Economics in post-independence era, etc. Aspirants need to cover the syllabus of both the papers to score good marks.
Syllabus for Paper – I
Advanced Micro Economics
- Markets Structure: Monopolistic Competition, Duopoly, Oligopoly.
- Modern Welfare Criteria: Pareto Hicks and Scitovsky, Arrow’s Impossibility Theorem, A. K. Sen’s Social Welfare Function.
- Marshallian and Varrasiam Approaches to Price determination.
- Alternative Distribution Theories; Ricardo, Kaldor, Kaleeki.
Advance Macro Economics
Approaches to Employment Income and Interest Rate determination: Classical, Keynes (IS)-LM) curve, Neo-classical synthesis and New classical, Theories of Interest Rate determination and Interest Rate Structure.
Money-Banking and Finance
- Public Finance and its Role in market Economy: In stabilization of supply, allocative, of resources and in distribution and development, Sources of Government revenue, forms of Taxes and Subsidies, their incidence and effects, Limits to taxation, loans, crowding-out effects and limits to borrowings, Public expenditure and its effects.
- Demand for and Supply of Money: Money Multiplier Quantity Theory of Money (Fisher, Pique and Friedman) and Keyne’s Theory on Demand for Money, Goals and Instruments of Monetary Management in Closed and Open Economies, Relation between the Central Bank and the Treasury, Proposal for ceiling on growth rate of money.
International Economics
- Forms of Protection: Tariff and quota.
- Old and New theories of International Trade.
- Comparative advantage
- Terms of Trade and Offer Curve
- Product Cycle and Strategic Trade Theories
- Trade as an engine of growth and theories of underdevelopment in an open economy
- Balance of Payments Adjustment: Alternative Approaches.
- Price versus income, income adjustments under fixed exchange rates.
- Exchange rate adjustments under capital mobility
- Theories of Policy Mix.
- Trade Policy and Developing Countries.
- Floating Rates and their Implications for Developing Countries: Currency Boards.
- BOP, adjustments and Policy Coordination in open economy macromodel.
- Trade Blocks and Monetary Unions.
- Speculative attacks
- WTO : TRIMS, TRIPS, Domestic Measures, Different Rounds of WTO talks
Growth and Development
- Welfare indicators and measures of growth—Human Development Indices. The basic needs approach.
- Development and Environmental Sustainability—Renewable and Non-renewable Resources, Environmental Degradation, Intergenerational equity development.
- Planning and Economic Development: changing role of Markets and Planning, Private-Public Partnership.
- Economic Development and International Trade and Investment, Role of Multinationals.
- Process of Economic Development of less developed countries: Myrdal and Kuzments on economic development and structural change: Role of Agriculture in Economic Development of less developed countries.
- Theories of growth
- Harrod’s model
- Lewis model of development with surplus labour
- Balanced Unbalanced Growth.
- Human Capitals and Economic Growth.
- Research and Development and Economic Growth.
Syllabus for Paper – II
Indian Economics in Post-Independence Era
Land System and its changes, Commercialization of agriculture Drain theory, Laissez faire theory and critique, Manufacture and Transport: Jute, Cotton, Railways, Money and Credit.
Indian Economy after Independence
- The Pre-Liberalization Era
- Agriculture: Land Reforms and land tenure system, Green Revolution and capital formation in agriculture.
- National and Per capita Income: Patterns, trends, aggregate and sectoral composition and changes therein.
- Contribution of Vakil, Gadgil and V.K.R.V. Rao.
- Industry Trends in composition and growth, Role of public and private sector, small scale and cottage industries.
- Broad factors determining National Income and distribution, Measures of poverty, Trends in poverty and inequality.
- The Post-Liberalization Era
- New Economic Policy and Employment: Employment and poverty, Rural wages, Employment Generation, Poverty alleviation schemes, New Rural, Employment Guarantee Scheme.
- Planning: From central Planning to indivative planning, Relation between planning and markets for growth and decentralized planning : 73rd and 74th Constitutional amendments
- New Economic Policy and Monetary System. Role of RBI under the new regime.
- New Economic Reform and Agriculture: Agriculture and WTO, Food processing, subsidies, Agricultural prices and public distribution system, Impact of public expenditure on agricultural growth.
- New Economic Policy and Industry: Strategy of industrialization, Privatization, Disinvestments, Role of foreign direct investment and multinationals.
- New Economic Policy and Trade: Intellectual property rights : Implications of TRIPS, TRIMS, GATS and new EXIM policy
- New Exchange Rate Regime: Partial and full convertibility, Capital account convertibility
UPSC Economics Syllabus 2023 : Download PDF