How to handle Indian Economy for Group-I Mains / Civils

Of all the components of Civil Services Mains General Studies syllabus, Indian Economy is the scariest and the most interesting. It is scary because there are too many interconnecting topics, and interesting; because it impinges on our everyday life. Adding to the challenge is the fact that apart from Macro Economics and Micro Economics there is UPSC Economics for which there is no clear guidance - in terms of material or the empirical and analytical content or the perspective. The next few paragraphs will try to sort out such problems and difficulties. Let's first see what is available. We have a clear cut syllabus as to what economics consists of and number of textbooks in economics written by Dutt & Sundaram, Mishra & Puri, Uma Kapila, I.C. Dhingra and also NCERT books to name a few. We need to start from the structure of underdeveloped economies and progress through Socio- economic Planning including the current 11th five year plan; go through agriculture, traditional macro economic topics like taxation, fiscal policy, banking, international trade, welfare economics etc. We should have compulsory reading of the Economic Survey though in parts. Understanding these topics is not always difficult. For example National Income and various methods to measure it, poverty, and unemployment and so on, leave us with a sense of familiarity even though such familiarity is very superficial and hardly more serious than gossip. These are serious concepts and the treatment required is in-depth and much thorough. Conceptual clarity and fundamentals carry the highest premium in Economics. A strong note of dynamism should drive aspirants' intellectual pursuit. What is presently unfolding in the Indian Economy is of utmost importance. If the right material is procured and sincere effort is made the concepts are within reach. Generally in the Mains, about 100 marks in Paper - II are from Indian Economy, Global Economics and Economic Theory. However, Mains 2009 GS Papers showed some changes. Now both paper I as well as Paper II have questions related to Indian or Global economy. For example in 2009 in Paper I question on Integrated Energy Policy, impact of global meltdown reflected in the Economic Survey 2008-09, and National Family Health Survey have economic touch. Similarly in Paper II questions like role of foreign investments in India’s economic growth, India’s financial liberalization policy in the context of global financial crisis, India’s stand on WTO Doha Round of negotiations and Indo-US Knowledge Initiative in Agriculture are pure economy. In the same way in 2008 in Paper - II there was a question on WTO - "Discuss India's stand on agricultural issues in WTO's Ministerial Conferences since Doha Round (250 words)". Similarly in the year 2007, "What is Dumping? Evaluate the remedial measures taken by the Government of India, vis-à-vis, WTO provisions regarding dumping (250 words)". In the year 2006 there was a question about Globalization - "Examine the effects of globalization on poverty removal in India (150 words)". Economics questions extend the conventional into the current developments. For clear understanding, have a look at the following question about `planning is superior to markets in capital formation'. It takes a conventional textbook topic like capital formation and contextualizes it in the current debate of State Vs Market. Similarly the developmental Economics concerning poverty, unemployment etc. is seemingly conventional but the most recent perspectives are necessary to analyze this phenomenon. A thorough reading of the 11th five year plan document, Economic Survey and the annual reports of Union Ministry of Finance, among others for a clear perspective and clarity on the relevant themes is recommended. There are 15 questions in Economics section where candidates' capacity for precision and brevity is tested as each question carries two marks and relates to a host of current and text book themes ranging from what is NIFTY to Lorenz Curve to Green GDP to Minimum Alternative Tax to Indicative Planning to Twin Deficits etc. The range is vast and there lies the challenge. The aspirants are advised to take down notes from all important sources – The Hindu, Economic Times and the various text books and websites. We recommend that only authentic sources be depended upon.