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Economics Optional Syllabus for UPSC

The UPSC Economics optional is examined in two Mains papers of 250 marks each, 500 marks in total. Paper I has 6 topics and Paper II has 7 topics, listed below with their subtopics.

Economics Paper I syllabus

  1. 1. Microeconomics

    • Consumer theory, demand analysis
    • Production & costs
    • Market structures, pricing

  2. 2. Macroeconomics

    • National income accounting
    • Consumption, investment functions
    • Multiplier, accelerator

  3. 3. Monetary Economics

    • Money supply, demand
    • Banking, central banking
    • Monetary policy

  4. 4. Public Finance

    • Taxation theory, types
    • Public expenditure, debt
    • Fiscal policy, federalism

  5. 5. International Economics

    • Trade theories, policy
    • Balance of payments
    • Exchange rate systems

  6. 6. Growth, Development & Environmental Economics

    • Growth models — Harrod-Domar, Solow, endogenous growth
    • Development theories — structuralist, dependency, capability approach (Sen)
    • Sustainable development — Brundtland definition, SDGs, green economy
    • Environmental economics — externalities, Pigou tax, Coase theorem, natural resource valuation

Economics Paper II syllabus

  1. 1. Indian Economy Overview

    • Economic reforms since 1991
    • Planning to market economy
    • Structural changes

  2. 2. Agriculture

    • Agricultural growth, productivity
    • Land reforms, tenancy
    • Farm credit, marketing

  3. 3. Industry

    • Industrial policy evolution
    • Public & private sector
    • Small scale industries, MSMEs

  4. 4. Infrastructure

    • Energy, transport
    • Communication, digital economy
    • PPP models

  5. 5. Money, Banking & Financial Sector

    • Reserve Bank of India — functions, monetary policy tools (repo, CRR, SLR)
    • Banking sector reforms — NPA resolution, IBC, bank mergers, payment banks
    • Financial sector — SEBI, capital markets, insurance, pension; fintech & UPI
    • Monetary policy — inflation targeting, MPC, transmission mechanism

  6. 6. External Sector

    • Foreign trade policy
    • FDI, FII
    • External debt, reserves

  7. 7. Social Sector

    • Poverty, inequality
    • Employment, labor issues
    • Health, education, HDI

Other Social Sciences optionals

Track your Economics preparation

Follow Paper I and Paper II topic by topic, with revision counts — free.

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