The Civil Services Preliminary Examination, apart from the History, Geography, Polity, General Studies Paper-I also consist of Indian Economy. It covers the Economic and Social Developments Topics like Sustainable Development, Poverty, Inclusion, Demographics, Social Sector initiatives etc. An aspirant does not require subject specialisation in economics. However, economics is one of the toughest nuts to crack either in UPSC IAS Prelims and IAS Mains.
Specifically, an IAS aspirant needs to study this subject because one should have proper understanding of economic affairs - how it affects the economic and social activities of common people at large and what are the consequences of low performing economy on the living standard of people vice-versa.
The preparation of economy part for UPSC IAS Prelims Exam requires two types of understandings as per the previous trends of asking questions.
1. Understanding of Basic Concepts: The concepts like Development, Growth, GDP, various types of rates i.e. Policy Rates (Bank Rate, Repo Rate, Reverse Repo Rate, MSF), Reserve Ratios (CRR and SLR), Exchange Rates, Lending and Deposit Rates, Inflation.
2. Understanding of Implications of such basic concepts:
• A candidate should have proper understanding of above static concepts and their dynamic implications on an economy.
• One has to find out the established correlation of such rates and inflation on the growth and development of an economy.
• Apart from these, an aspirants must keep an eye on the current policies of Government (i.e. Fiscal) and the Central Bank (i.e. Monetary), International Trade and Economics.
However the pattern of asking questions is same in the year 2014 as compared to the year 2013 but the number of questions asked have decreased from 18 in 2013 to 14 in 2014.
The preparation of Economy for CSAT- 2016 could be done by studying following books:
For the implication part: Aspirants should continue with daily Newspapers (The Hindu, The Indian Express) and the selective portion of Economic Survey and Budget.
Aspirants should practice more and more to get higher marks in the IAS Prelims Exam. For this purpose here we present the list of multiple choice questions important for the IAS Prelims Exam 2016.