Economy is one of the high-yield subjects in UPSC Prelims, contributing 30–40 marks each year. Its blend of static theory and current-affairs application demands both conceptual clarity and up-to-date knowledge. This guide covers:

Important Static Topics

1. National Income Framework
   
   • GDP, GNP, NNP, NDP: inclusions & exclusions
     
   • Real vs. Nominal GDP & GDP Deflator
     
   • Per Capita Income calculations
     
2. Evolution of Indian Economy
   
   • Post-Independence scenario & Bombay Plan
     
   • Five-Year Plans vs. LPG Reforms (1991 onwards)
     
3. Banking & Financial System
   
   • RBI Functions & Monetary Policy tools (Repo, Reverse Repo, SLR, CRR)
     
   • Basel Norms, Digital Banking, UPI, CBDC (Digital Rupee)
     
   • Financial Inclusion schemes: PMJDY, MUDRA, SIDBI
     
4. Inflation Dynamics
   
   • Types: Deflation, Disinflation, Stagflation, Skewflation
     
   • CPI vs. WPI (and their baskets)
     
   • Fiscal vs. Monetary levers to tame inflation
     
5. External Sector
   
   • Balance of Payments: capital vs. current account
     
   • FDI norms & foreign exchange reserves
     
   • India’s role in IMF, WTO, SAARC currency swaps
     
6. Government Budget & Fiscal Policy
   
   • Revenue vs. Capital receipts/expenditure
     
   • Taxation structure, subsidies, fiscal deficit targets
     
7. Sectoral Overview
   
   • Agriculture, Industry & Services shares in GDP & employment
     
   • Key Government schemes (e.g., PM-KISAN, PLI)
     

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Current Affairs Topics (Jan 2024–May 2025)

• Variable Repo Rate adjustments
  
• RBI Surplus Transfer to Govt.
  
• Integrated Ombudsman for RBI
  
• Revised Priority Sector Lending norms
  
• InvITs, Syndicated Loans & Angel Tax updates
  
• Green National Highway Corridors Project
  
• Global Innovation Index 2024 ranking
  
• Recent Nobel Prize in Economics themes
  

Tip: Create a dynamic spreadsheet tracking each topic’s date, source, and summary for quick revision.

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Best Sources

For Static Concepts

• “Indian Economy” by Ramesh Singh (Ch. on National Income & Banking)
  
• NCERT (Macroeconomics & Indian Economic Development)
  

For Current Affairs

• PIB (Min. of Finance) releases
  
• Annual Budget & Economic Survey documents
  

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Trend Analysis in Prelims Economy

Year	No. of Econ Qs	Focus Area
2020	18	Monetary Policy & Inflation
2022	22	Digital Banking & UPI
2024	20	Budget Themes & RBI Transfers

• Application-Based questions are rising (e.g., effect of repo rate cuts).
  
• Flagship schemes (PMJDY, MUDRA) & Budget highlights appear every year.
  

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7 Proven Tips to Ace Economy

1. Build Conceptual Clarity: Break down each static topic into flow-charts.
   
2. Link Theory with News: “What happens if RBI cuts CRR?” → map to inflation control.
   
3. Regular PYQ Drills: Solve past 10 years’ economy MCQs.
   
4. Chart & Diagram Practice: Sketch BOP components, money-market vs. capital-market.
   
5. Flashcards for Schemes: Keep one-page notes on PMJDY, PLI, Green Corridors.
   
6. Group Discussion: Debate international ratings (S&P, Moody’s) trends.
   
7. Revision Cycle: Revise all static topics monthly; current affairs weekly.
   

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Now you’re equipped with a roadmap to master Economy for UPSC Prelims 2025. Stay consistent, link static theory with current affairs, and practice application-based questions.