‘INSIGHTS INTO ECONOMICS’-Trend analysis on Previous Years Questions

SHARE OF ECONOMY SECTION IN LAST 5 YEARS CSE PRELIMS:

• 2017 - 7 questions
• 2018 - 13 questions
• 2019 - 13 questions
• 2020 - 13 questions
• 2021 –13 questions

THEMATIC ROADMAP FOR THE SESSION’ –

• Major Themes of Economy section in previous years–

• Basics of economy

• Fiscal policy, National Income & government budgeting (FP, NI & GB)

• Monetary policy and inflation (MP & I)

• Banking sector

• Finance and Investment (Fin & Inv)

• External sector

No. of questions from these Themes

(2017-2021)

5
4 4 4 4
3 3 3 3 3
2 2 2 2 2 2 2
0 1 0 1 0 0 1 1 1 1 1 1 1

2017 2018 2019 2020 2021

Basics FP, NI & GB MP & I Banking Fin & Inv Ext Sec

‘SAVIOURS’- WHAT TO READ UNDER THESE THEMES??

‘SAVIOUR 1.0’: BASICS

• Microeconomics, Human resource development.

• Social aspects of the economy, employment types, market competition etc
‘SAVIOUR 2.0’: FISCAL POLICY, NATIONAL INCOME AND GOVERMENT BUDGETING:

• GDP, GNP, Budget, Taxation, FYPs etc.,

‘SAVIOUR 3.0’: MONETARY POLICY AND INFLATION

• Monetary policy, types of inflation, ways and means to tackle inflation, the role of RBI as a
central bank

‘SAVIOUR 4.0’: BANKING SECTOR

• Core banking, digitization, initiatives in banking sector, facets of digital economy, financial
inclusion etc

‘SAVIOUR 5.0’: FINANCE AND INVESTMENT

• FDI, FII, Money market, capital market.

‘SAVIOUR 6.0’: EXTERNAL SECTOR

• Balance of payment, Trade balance, Exports, Imports, Foreign Exchange.

SOURCES OF SAVIOURS: It is known that economy questions in prelims can be solved with the blend
of static knowledge and current developments.

• Class notes

• Vision IAS printed material

• NCERTs

• Class 11- Economic Development

• Class 11 - Micro-economics (Selective topics)

• Class 12- Macro-economics

• Current Affairs

• Economic Survey and Budget Summary.

A Question from Theme 3.0 (Monetary policy and inflation):

Q) With reference to the inflation in India, which of the following statements is correct?

A) Controlling the inflation in India is the responsibility of the government of India only.

B) The Reserve Bank of India has no role in controlling the inflation.

C) Decreased money circulation helps in controlling the inflation.

D) Increased money circulation helps in controlling the inflation.

Ans: C

Inflation is a measure of price rise in an economy. To control the same, RBI decreases the money
supply in the economy by raising interest rates or changing parameters like CRR, SLR etc.
So, how to brace oneself to ace in Economy section?
• Conceptual clarity: It is important to have clarity on the terminology in economy to
understand the logic behind the questions (Ex: Accommodative monetary policy was there
in news recently.)
• RRR _Revise, Revise and Revise: It very important to keep revising the basics to have utmost
clarity on economy concepts. Otherwise, it will be easy for UPSC to make you confuse in
MCQ’s statements.
• ‘Rome wasn’t built in a day’: In the same way, it is highly impossible to overcome the
mistakes and improving accuracy at the last minute of preparation. For this, continuous
practice is necessary. Keep solving the mock tests (Sectional and comprehensive tests)
periodically and analyse your performance.
• Don’t take Wrong-Turn: To keep yourself in the right track of preparation and preventing
yourself from reading unnecessary things, it is important to keep looking into PYQ’s and
putting energy on topics having high weightage.
• Motivation: Fluctuations in marks at mock tests are common at this moment. Getting
demotivated with less marks should be avoided. Your objective should be learning from the
mistakes and getting silly mistakes exhausted before UPSC prelims is utmost important.

YOU CAN DO IT!!