Economics Syllabus UPSC Mains Exam

Economics Optional Syllabus Paper – I 

Advanced Micro Economics

  • Marshallian and Walrasiam Approaches to Price determination.
  • Alternative Distribution TheoriesRicardo, Kaldor, Kaleeki.
  • Markets StructureMonopolistic Competition, Duopoly, Oligopoly.
  • Modern Welfare CriteriaPareto Hicks & Scitovsky, Arrow’s Impossibility Theorem, A.K. Sen’s Social Welfare Function.


Advanced Macro Economics

  • Approaches to Employment Income and Interest Rate determination
  • Classical, Keynes (IS-LM) curve
  • Neo classical synthesis and New classical
  • Theories of Interest Rate determination and Interest Rate Structure.


Money – Banking and Finance

  • Demand for and Supply of Money
  • Money Multiplier Quantity Theory of Money (Fisher, Pique and Friedman)
  • Keyne’s Theory on Demand for Money
  • Goals and Instruments of Monetary Management in Closed and Open Economies
  • Relation between the Central Bank and the Treasury
  • Proposal for ceiling on growth rate of money
  • Public Finance and its Role in Market Economy
  • In stabilization of supply, allocation of resources and in distribution and development
  • Sources of Govt. revenue, forms of Taxes and Subsidies, their incidence and effects
  • Limits to taxation, loans, crowding-out effects and limits to borrowings. Public Expenditure and its effects


International Economics

  • Old and New Theories of International Trade
  • Comparative Advantage
  • Terms of Trade and Offer Curve
  • Product Cycle and Strategic Trade Theories
  • Trade as an engine of growth and theories of under development in an open economy
  • Forms of ProtectionTariff and quota
  • Balance of Payments AdjustmentsAlternative Approaches.
  • Price versus income, income adjustments under fixed exchange rates
  • Theories of Policy Mix
  • Exchange rate adjustments under capital mobility
  • Floating Rates and their Implications for Developing CountriesCurrency Boards
  • Trade Policy and Developing Countries
  • BOP, adjustments and Policy Coordination in open economy macro-model
  • Speculative attacks
  • Trade Blocks and Monetary Unions
  • WTOTRIMS, TRIPS, Domestic Measures, Different Rounds of WTO talks


Growth and Development

  • Theories of growth
  • Harrod’s model,
  • Lewis model of development with surplus labour
  • Balanced and Unbalanced growth,
  • Human Capital and Economic Growth.
  • Research and Development and Economic Growth
  • Process of Economic Development of Less developed countries
  • Myrdal and Kuzments on economic development and structural change
  • Role of Agriculture in Economic Development of less developed countries.
  • Economic development and International Trade and Investment, Role of Multinationals
  • Planning and Economic DevelopmentChanging role of Markets and Planning, Private- Public Partnership.
  • Welfare indicators and measures of growth – Human Development Indices. The basic needs approach.
  • Development and Environmental Sustainability – Renewable and Non Renewable Resources, Environmental Degradation, Intergenerational equity development.

Click Here – Book For Economics Optional Paper – 1


Economics Optional Syllabus Paper – II

Indian Economy in Pre-Independence Era

  • Land System and its changes, Commercialization of agriculture, Drain theory, Laissez faire theory and critique
  • Manufacture and TransportJute, Cotton, Railways, Money and Credit


Indian Economy after Independence

  • The Pre Liberalization Era
  • Contribution of Vakil, Gadgil and V.K.R.V. Rao
  • Agriculture Land Reforms and land tenure system, Green Revolution and capital formation in agriculture
  • Industry Trends in composition and growth, Role of public and private sector, Small scale and cottage industries
  • National and Per capita incomepatterns, trends, aggregate and Sectoral composition and changes there in
  • Broad factors determining National Income and distribution, Measures of poverty, Trends in poverty and inequality
  • The Post Liberalization Era
  • New Economic Reform and AgricultureAgriculture and WTO, Food processing, Subsidies, Agricultural prices and public distribution system, Impact of public expenditure on agricultural growth
  • New Economic Policy and IndustryStrategy of industrialization, Privatization, Disinvestments, Role of foreign direct investment and multinationals.
  • New Economic Policy and TradeIntellectual property rights Implications of TRIPS, TRIMS, GATS and new EXIM policy
  • New Exchange Rate RegimePartial and full convertibility, Capital account convertibility
  • New Economic Policy and Public Finance Fiscal Responsibility Act, Twelfth Finance Commission and Fiscal Federalism and Fiscal Consolidation
  • New Economic Policy and Monetary system
  • Role of RBI under the new regime
  • PlanningFrom central Planning to indicative planning, Relation between planning and markets for growth and decentralized planning73rd and 74th Constitutional amendments.
  • New Economic Policy and EmploymentEmployment and poverty, Rural wages, Employment Generation, Poverty alleviation schemes, New Rural, Employment Guarantee Scheme.


Click Here – Book For Economics Optional Paper – 2

India Yearbook English India Yearbook Hindi Economic Survey 2017

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