Indian Civil Service Exams (CSE) Syllabus - UPSC Exams

UPSC Exams Indian Civil Services Syllabus for Main Exams: Economics

Paper-II

Evolution of the Indian Economy till independence. The Colonial Heritage: Land System & Agriculture, Taxes, Money and credit, Trade, Exchange Rate, the “Drain of Wealth controversy” of late 19th Century. Randade’s critique of Laissez-Faire; Swadeshi movement; Gandhi and Hind Swaraj.

Indian Economics in Post-Independent Era-Contributions of Vakil, Gadgil and Rao. National and percapita Income; Patterns, Trends, Aggregate and sectoral-composition and changes therein. Broad factors determining National Income and its distribution; Measures of poverty. Trends in below poverty-line proportion.

Employment: Factors determining employment in short and long periods. Role of capital, wage-goods, wage-rate and technology. Measures of unemployment. Relation between income, poverty and employment, and issues of distribution and social justice.

Agriculture-Institutional set-up of land system size of agricultre holdings and efficiency-Green Revolution and technological changes-Agricultural prices and terms of trade-Role of public distribution and farm-subsidies on agricultural prices and production. Employment and poverty in agriculture-Rural wages-employment schemes-growth experience-land reforms. Regional disparities in agricultural growth. Role of Agriculture in export.

Industry: Industrial system of India: Trends in Composition and growth. Role of public and private sectors, Role of small and cottage industries. Indian industrial Strategy-Capital versus consumer goods, wage-goods versus luxuries, capital-intensive versus labour-intensive techniques, import-substituting versus export promotion. Sickness and high-cost Industrial policies and their effects. Recent moves for iberalization and their effects on Indian industry.

Money and banking: The monetary institutions of India: Factors determining demand for and supply of money. Sources of Reserve money-money multiplier-Techniques of money supply regulation under open economy. Functioning of money market in India. Budget deficit and money supply. Issues in Reform of Monetary and Banking Systems.

Index numbers of price levels-Course of Price level in post-Independence period-sources and causes of inflation-role of monetary and supply factors in price level determination-policies towards control of inflation. Effects of inflation under open economy.

Trade, balance of payments and exchange : Foreign trade of India; composition and direction shifts in trade policy from import substitution to export promotion. Impact of iberalization on pattern of trade. India’s external Borrowings-the Debt problem. Exchange rate of the rupee; Devaluations, depreciations and their effects on balance of payments-Gold imports and Gold policy-convertibility on current and capital accounts-rupee in an open economy. Integration of Indian economy with world economy-India and the WTO.

Public Finance and Fiscal Policy : Characteristics of and trends in India’s Public Finance-Role of Taxes, (direct and indirect) and subsidies-Fiscal and monetary deficits-public expenditures and their significance-Public Finance and Inflation-Limiting Government’s debt-Recent fiscal policies and their effects.

Economic Planning in India-Trends in Savings and investment-Trends in Savings to Income and capital-output ratios-Productivity, its sources, growth and trends-growth versus distribution-Transition from Central Planning to indicative planning-relation between Market and Plan-strategies for Growth, social justice and Plans. Planning and increasing the growth rate.