IAS Prelims 2014: Why to prepare Indian Economy

The study of Economy helps the candidates understand the planning process in the country which is absolutely essential for the development of a country.

Created On: Mar 12, 2014 13:04 IST

IAS Exam is one of the most difficult exams in the country and hence the candidates need to do thorough study of the topics mentioned in the Syllabus. Recently, UPSC has declared the IAS Main (Written) 2013 Result. The number of candidates who qualified for interview is far less from the candidates who applied for the IAS Prelims. The Union Public Service Commission has scheduled the IAS Prelims 2014 Exam to be conducted on 24 August 2014 which means that only 5 months are left with the candidates for the preparation of the examination. The IAS Prelims Exam 2014 consists of two papers: General Studies Paper I and General Studies Paper II.

It is very important for a candidate preparing for Civil Services to study thoroughly about the Indian Economy. The significance of this topic from exam point of view emanates from the fact that 10-15 questions are asked every year directly from this section. Apart from this, there are a number of reasons why it is imperative for Civil Services aspirants to study Indian Economy:

•    It is important for the aspiring Civil Servants to understand the economic development of the country, especially in case of a fast developing country like India.
•    It helps the candidates understand the lacunae and the strengths of the Indian economic policies.
•    Understanding the basic terms and principles related to Economy are important in order to understand the whole economic set up of country.
•    It is necessary for the candidates to have a complete idea about the current economic scenario of the country
•    The study of Economy helps the candidates understand the planning process in the country which is absolutely essential for the development of a country.
•    It helps the candidates understand the policies related to foreign investments which form a key driver for growth of the country.
•    The Study of the Planned Development of India gives a bigger picture of the evolution of Indian Economy in different phases and helps the candidates to understand the basis of the present Economic policies.

The relevance of studying Indian Economy further increases due to the fact that it is connected to many other topics of the syllabus:

•    Indian Economy is interrelated to the Social issues of the country, various Government programmes and schemes, India’s Foreign Policy, etc, and without understanding the economic concepts, these topics cannot be understood properly.
•    This section is interconnected to almost all the sectors of the country like Agriculture, Industry and all the Services.

Candidates can refer of Myjosh for all exam preparation related doubts and queries.

Some previous years questions have been given below:

Q. The balance of payments of a country is a systematic record of
(a) all import and transactions of a during a given period normally a year
(b) goods exported from a country during a year
(c) economic transactions between the government of one country to another
(d) capital movements from one country to another
Answer. a
Q. What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector?
1. Setting up of National Investment and manufacturing Zones
2. Providing the benefit of ‘single window clearance’
3. Establishing the Technology Acquisition and Development Fund
Select the correct Answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer. d
Q. India has experienced persistent and high food inflation in the recent past, what could be the reasons?
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change. The food supply chain has structural constraints, which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer. b