Find here Economics Syllabus. UPSC offers a long list of optional subjects for aspirants. Candidates who wish to take Economics as one optional subject, need to appear in two papers. Here, we are giving detailed syllabus of Economics for UPSC Mains Examination.

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Economics syllabus optional paper


UPSC Mains-Economics Syllabus


Syllabus of Economics-Part-I


  1. Advanced Micro Economics:

(a) Price Determination Approaches Marshallian and Walrasiam.

(b) Alternative Distribution Theories: Ricardo, Kaleeki, Kaldor

(c) Markets Structure: Monopolistic, Duopoly, Oligopoly.

(d) Modern Welfare Criteria: Arrow’s Impossibility Theorem, Approaches, Pareto Hicks & Scitovsky,  A.K. Sen’s Social Welfare Function.

  1. Advanced Macro Economics:

    EmployApproaches: Classical, Keynes (IS-LM) curve, Neoclassical synthesis and New classical. Interest Rate determination Theories and Interest Rate Structure.

  2. Money – Banking and Finance:

(a) Demand for and Supply of Money: Money Multiplier Quantity Theory of Money (Pique, Fisher and Friedman) and Keyne’s Theory on Demand for Money, Various instruments and goals of Monetary Management in Open and Open Economies. The relation between the Treasury and Central Bank. Proposal for a ceiling on the growth rate of money.

(b) Public Finance and its Role in Market Economy: In supply stabilisation, in resource allocation and in distribution and development.  Sources of Govt. such as revenue, forms of Taxes and Subsidies, their incidence and effects. Public Expenditure and its effects.Limits to taxation, loans, crowding-out effects and limits to borrowings.

  1. International Economics:

(a) All New and Old  Theories of International Trade: Such as

(i) Comparative Advantage

(ii)Product Cycle and Strategic Trade Theories.

(iii) Terms of Trade and Offer Curve.

(iv)Trade as an engine of growth and theories of under development in an open economy.

(b) Forms of Protection: Tariff and quota and types.

(c) Balance of Payments Adjustments: Study of Alternative Approaches.

(i) Income vs Price, income adjustments under fixed exchange rates,

(ii)Exchange rate adjustments under capital mobility

(iii) Theories of Policy Mix

(iv) Floating Rates and their Implications for Developing Countries: Currency Boards.

(v) Trade Policy and Developing Countries.

(vi) BOP, adjustments and Policy Coordination in open economy and concept of macro-model.

(vii) All Trade Blocks and Monetary Unions.

(viii) Speculative attacks

(ix) WTO: TRIMS, TRIPS, Domestic Measures,  Rounds of WTO talks and impact.

  1. Growth and Development:

(a) Theories of growth:

(i) Harrod’s model,

(ii) Balanced and Unbalanced growth,

(iii) Lewis model of development with surplus labour

(iv) Human Capital and Economic Growth.

(v) Research and Development and Economic Growth

(b) Process of Economic Development of Less developed countries:

Views of  Myrdal and Kuzments on economic development and structural change: Role of Agricultural sector in Economic Development of less developed countries.

(c) Economic development and International Trade and Investment and impact of Multinationals.

(d) Planning and Economic Development: changing role of Markets and Planning, Concept of Private and Public Partnership

(e) Welfare indicators and measures of growth – The basic needs approach Human Development Indices.

(f) Development and Environmental Sustainability – Non-Renewable and Renewable Resources, Intergenerational equity development, Environmental Degradation.,


Syllabus of Economics-Part-II


  1. Indian Economy with reference to Pre-Independence Era:

    Commercialization of agriculture and Land Reform System and its changes, Laissez-faire theory and critique, Drain theory. Manufacture and Transport: Cotton, Jute, Railways, Money and Credit.,

  2. Indian Economy after Independence:

      (i)The Pre Liberalization Era Before 1991:

Contribution of Gadgil, Vakil and V.K.R.V. Rao.

Agriculture: Land Reforms and land tenure system, Green Revolution and impact, Capital formation in agriculture,

Industry Trends in composition and growth, Role of the private and public sector, Small scale and cottage industries.

National and Per capita income: Trends, patterns, aggregate and Sectoral composition and changes their in.

National Income and factors determining National Income and distribution, Trends in poverty and inequality, Measures of poverty.

(ii)The Post Liberalization Era:

New Economic Policy and Industry: Strategy of industrialisation, Disinvestments, Privatisation Role of foreign direct investment and MNCs.

New Economic Reform and Agriculture: WTO and  Agriculture, Food processing, Subsidies, Impact of public expenditure on agricultural growth, Agricultural prices and public distribution system.

New Economic Policy and Trade: Intellectual property rights: Implications of TRIPS, TRIMS, GATS and new EXIM policy.

New Exchange Rate Regime: Full and Partial convertibility, Capital account convertibility.

New Economic Policy and Monetary system. Role of RBI  in the new regime.

New Economic Policy and Public Finance: Fiscal Responsibility Act, Fiscal Federalism and Fiscal Consolidation and  Twelfth Finance Commission.

Planning: Overview of Central Planning to indicative planning, Relation between planning and Growth,  growth and decentralised planning: Impact of 73rd and 74th Constitutional amendments.

New Economic Policy and Employment: Employment and poverty, Employment Generation, Rural wages, Poverty alleviation schemes, New Rural Employment Guarantee Scheme.


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