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Economics Optional Syllabus for UPSC 2025

Complete syllabus guide for Economics Optional in UPSC Civil Services Examination. Master both papers with our comprehensive study material.

PAPER—I: Advanced Economic Theory

1. Microeconomic Analysis

  • 1.1 Demand Analysis:
  • - Marshallian and Hicksian Demand Functions
  • - Consumer Surplus
  • - Revealed Preference Theory
  • - Duality Theory
  • 1.2 Production and Costs:
  • - Production Functions
  • - Returns to Scale and Economies of Scale
  • - Cost Functions
  • - Profit Maximization
  • 1.3 Market Structure:
  • - Perfect Competition
  • - Monopoly and Price Discrimination
  • - Monopolistic Competition
  • - Oligopoly and Game Theory
  • - Entry Prevention and Limit Pricing

2. Macroeconomic Analysis

  • 2.1 National Income Accounting
  • 2.2 Classical Theory of Employment
  • 2.3 Keynesian Theory:
  • - Consumption Function
  • - Investment Function
  • - Multiplier and Accelerator
  • 2.4 Neo-classical Synthesis
  • 2.5 New Classical Theory
  • 2.6 New Keynesian Approach
  • 2.7 Theories of Business Cycles
  • 2.8 Post Keynesian Developments

3. Money and Banking

  • 3.1 Demand for and Supply of Money
  • 3.2 Banking System and Credit Creation
  • 3.3 Interest Rate Structure
  • 3.4 Money Market and Capital Market
  • 3.5 Central Banking
  • 3.6 Monetary Policy
  • 3.7 Financial Sector Reforms
  • 3.8 Banking Sector Reforms in India
  • 3.9 Non-Banking Financial Institutions

4. Public Finance

  • 4.1 Public Goods
  • 4.2 Market Failure
  • 4.3 Theory of Public Expenditure
  • 4.4 Taxation and Economic Efficiency
  • 4.5 Optimal Taxation
  • 4.6 Public Investment Criteria
  • 4.7 Fiscal Federalism
  • 4.8 Public Debt Management
  • 4.9 Fiscal Policy and Fiscal Responsibility

PAPER—II: Indian Economic Problems

1. Economic Development and Policy in India

  • 1.1 Development Experience:
  • - Alternative Development Strategies
  • - Planning Process in India
  • - Role of State and Market
  • 1.2 Structural Changes:
  • - Agricultural Sector
  • - Industrial Sector
  • - Service Sector
  • 1.3 Foreign Trade and Investment:
  • - Trade Policy Reforms
  • - Export-Import Policy
  • - Foreign Direct Investment

2. Economic Reforms in India

  • 2.1 Liberalization
  • 2.2 Privatization
  • 2.3 Globalization
  • 2.4 WTO and India
  • 2.5 Industrial Policy Reforms
  • 2.6 Financial Sector Reforms
  • 2.7 Labor Market Reforms
  • 2.8 Public Sector Reforms
  • 2.9 Disinvestment Policy

3. Rural Development and Agricultural Policy

  • 3.1 Rural Credit and Rural Development
  • 3.2 Agricultural Price Policy
  • 3.3 Food Security System
  • 3.4 Agricultural Subsidies
  • 3.5 Agricultural Marketing
  • 3.6 Rural Industrialization
  • 3.7 Employment Generation Programmes
  • 3.8 Poverty Alleviation Programmes
  • 3.9 Rural Infrastructure Development

4. Current Challenges in Indian Economy

  • 4.1 Poverty and Inequality
  • 4.2 Unemployment
  • 4.3 Regional Disparities
  • 4.4 Environmental Concerns
  • 4.5 Infrastructure Development
  • 4.6 Human Capital Formation
  • 4.7 Social Security Measures
  • 4.8 Digital Economy
  • 4.9 Financial Inclusion

5. International Economic Issues

  • 5.1 Balance of Payments
  • 5.2 Exchange Rate Management
  • 5.3 External Debt
  • 5.4 Foreign Trade Policy
  • 5.5 International Economic Organizations
  • 5.6 Regional Economic Cooperation
  • 5.7 International Capital Movements
  • 5.8 Multinational Corporations
  • 5.9 Global Financial Markets

Recommended Study Resources

Essential Books

  • • Indian Economy by Ramesh Singh
  • • Macroeconomics by Dornbusch, Fischer and Startz
  • • Microeconomics by Pindyck and Rubinfeld
  • • Development Economics by Debraj Ray
  • • Indian Economy by Uma Kapila

Government Reports

  • • Economic Survey (Latest)
  • • RBI Annual Reports
  • • NITI Aayog Reports
  • • Union Budget Documents
  • • Planning Commission Reports

Journals and Periodicals

  • • EPW (Economic and Political Weekly)
  • • The Economist Magazine
  • • Financial Express and Economic Times
  • • Journal of Economic Perspectives
  • • Reserve Bank of India Bulletin

Practice Materials

  • • Previous Years' UPSC Economics Papers
  • • Economics Optional Notes by Vision IAS
  • • NCERT Economics Books
  • • Statistical Problems Practice Sets
  • • Economic Analysis Case Studies