How should I start preparing civil services

for the economy subject of the IAS-UPSC?

Please enlist the recommended books. Don't just write NCERT, please mention the
edition(old/new). Steps for completing it. And planning for that.
Anoob Razak, undercover Aspirant :)
7.7k Views
User has already written a good answer-Niharika Banerjee's answer to How should I start
preparing for the economy subject of the IAS-UPSC?.
However, I guess I will just give you my opinion as well.

As almost everyone suggests, I will suggest you to go through the NCERT Textbooks
first.

(I will be talking about new NCERT Textbooks only)

Reasons

1. They are easily available. Those Textbooks can be downloaded National Council Of
Educational Research And Training website
2. They start from the basics and are easy to understand.
3. They dont contain a lot of complex stuff.

Problem

1. A lot of values and statistics have changed since those textbooks ere published in 2006.
(for eg. You may find a statement like this- only 24 out 100 people are engaged in non-farm
work in India. Well, such statistics would have changed and you should rather update that
information as you learn more and more)
Now, the first NCERT Textbooks that talk about Economics are the ones in 9th and 10th
standards

Class IX ECONOMICS

Class X- UNDERSTANDING ECONOMIC

DEVELOPMENT

The problem with these textbooks (of 9th and 10th) is that they dont contain much stuff, but
nevertheless it wouldn't take you more than a few hours to go through them. Or just read the
headings and those key words given in bold letters. Or you can even skip a chapter
altogether and just read the summary at the end of each chapter.

Class XI- INDIAN ECONOMIC DEVELOPMENT

This book is about how the Indian Economy was during the time of independence and how it has
changed over the years and also provides insights into various simple concepts, including
Poverty, Five Year Plans, Rural development and so on.
I would suggest you to give it a shot.

Class XII- INTRODUCTORY MACROECONOMICS

This is one of the simplest books you will ever find about the basics of Macroeconomics.
Definitely go for it.
(Skip the calculations part if you feel like, all those Sigma blah blah. :D The important thing is
to understand the concept).
And at the end of each chapter, there is a SUMMARY section and KEY CONCEPTS section.
You can test yourself with those.

Class XII- INTRODUCTORY MICROECONOMICS.

Microeconomics
If you want, you may try it. Or just skip the chapter, and read the SUMMARY and KEY
CONCEPTS at the end of each chapter.
That is all about NCERT Textbooks.
By now, you will be well equipped to understand the some simple documents on economics.
Next task is to go through the previous years question papers (prelims) and see what they
ask and try to answer the questions of economics. The question papers and answer keys of last
3-4 years are available in UPSC Website.
Also check out the mains question papers and try to understand what to read and what to
skip/avoid from the documents or materials or articles that you come across.
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Trishaank Kumar, Civils aspirant and Explorer

1.2k Views Most Viewed Writer in UPSC Preparation
Economics

Here are some help tools for tackling Economics in the UPSC exams, ranging from the syllabus
to reading list and other tips.
Part-I
1. Advanced Micro Economics:
(a) Marshallian and Walrasiam Approaches to Price determination.
(b) Alternative Distribution Theories: Ricardo, Kaldor, Kaleeki
(c) Markets Structure: Monopolistic Competition, Duopoly, Oligopoly.
(d) Modern Welfare Criteria: Pareto Hicks & Scitovsky, Arrow's Impossibility Theorem, A.K.
Sen's Social Welfare Function.
2. 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.
3. Money - Banking and Finance:
(a) Demand for and Supply of Money: Money Multiplier Quantity Theory of Money (Fisher,
Pique and Friedman) and 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. (b) 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.
4. International Economics:
(a) Old and New Theories of International Trade
(i) Comparative Advantage
(ii) Terms of Trade and Offer Curve.
(iii)Product Cycle and Strategic Trade Theories.
(iv)Trade as an engine of growth and theories of under development in an open economy.
(b) Forms of Protection: Tariff and quota.
(c) Balance of Payments Adjustments: Alternative Approaches.

(i) Price versus income, income adjustments under fixed exchange rates,
(ii) Theories of Policy Mix
(iii)Exchange rate adjustments under capital mobility
(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 macro-model. (vii) Speculative
attacks
(viii) Trade Blocks and Monetary Unions. (ix) WTO: TRIMS, TRIPS, Domestic Measures,
Different Rounds of WTO talks.
5. Growth and Development:
(a) (i) Theories of growth: Harrod's model,
(ii) Lewis model of development with surplus labour
(iii) Balanced and Unbalanced growth,
(iv) Human Capital and Economic Growth.
(v) Research and Development and Economic Growth
(b) 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.
(c) Economic development and International Trade and Investment, Role of Multinationals.
(d) Planning and Economic Development: changing role of Markets and Planning, PrivatePublic
Partnership
(e) Welfare indicators and measures of growth - Human Development Indices. The basic needs
approach.
(f) Development and Environmental Sustainability - Renewable and Non Renewable Resources,
Environmental Degradation, Intergenerational equity development.
PART II

1. Indian Economy in PreIndependence Era: Land System and its changes,

Commercialization of agriculture, Drain theory, Laissez faire theory and critique. Manufacture
and Transport: Jute, Cotton, Railways, Money and Credit.
2. Indian Economy after Independence:
A. The Pre Liberalization Era:
1. Contribution of Vakil, Gadgil and V.K.R.V. Rao.
2. Agriculture: Land Reforms and land tenure system, Green Revolution and capital
formation in agriculture,
3. Industry Trends in composition and growth, Role of public and private sector, Small scale
and cottage industries.
4. National and Per capita income: patterns, trends, aggregate and Sectoral composition and
changes theirin.
5. Broad factors determining National Income an...
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Priyanka Sharma, CSE Aspirant.

1k Views Most Viewed Writer in CSAT and Civil Services Exam (India)
Dear Nitendra Negi, First of all I would like to clear that I am neither from Economic
background nor an aspirant having Economics as optional, Yet I want to add my comments to
this question, because I am reading Economics too.
1st step complete NCERT books (new ed) of IX, X, XI, and XII.
IX - Economics - 4 chapters
X - Understanding Economic Development - 5 chapters
XI - Indian Economic Development - 10 chapters
XII - Introductory Macroeconomics - 6 chapters
NCERT's for basics only.... Then

2nd step towards Mrunal's videos.

There are 69 Videos of Mrunal Academy for Economics.... Please understand them thoroughly.
Not leave a single one also, at any cost.
3rd step should be go for Indian Economics by Ramesh Singh or by Sanjiv Verma. I had read
Indian Economy by Ramesh Singh's so suggesting you, you will not regret reading this.
4th step
Economic Survey & India Yearbook.
websites: Reserve Bank of India (RBI) website, Planning Commission Website, Arthapedia,
MyGov: A Platform for Citizen Engagement towards Good Governance in India, Ministry
of Finance, Government of Indiaand many more.
For further details: Economics Optional Books for Civil Services Mains Exam - ClearIAS.com
Written May 11 View Upvotes Answer requested by Nitendra Negi
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Prateek Jain, www.wordscratch.in

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Economy can seem to be a nightmare. But treat it as just another subject. Its logical so u need not
mug most of it except schemes and policies. The key to the mystry is syllabus given by UPSC
and previous year papers which will act as lamp in you journey.
STEPS:
1. Start with Ramesh Singh book by TMH publication. If you are in Delhi, buy Shriram's
(Coaching in Delhi) Book on Economy. I would recommend latter as it is updated and
more suitable for the exams.
2. Watch video lectures on economy @mrunal.org for better understanding of concepts.
3. After following above two steps you will have background in basics and will be able to
understand economic news and understand consequences of movement of inflation and
rates. Till that level use above two sources on SOS basis to understand it. Keep updated
yourself with current news from HINDU as basic questions asked in exam can be related
to it.
4. Now you are equipped to comprehend ECONOMIC SURVEY. Its a specialist document
so it require good understanding of subject. Better to start after completing above steps.

Focus on boxes in every chapter, new schemes and social & physical infrastructure. @
mrunal.org you can find special areas to focus on. Be selected as it can be painful book.
5. Now you will be able found topics and attempt questions. For extra help go through
websites of mrunal, insight, vision ias to understand topics and way to answer.
6. If you come across any topic but you don't material. Simple google it. You will get
articles from all relevent sources and you answer is ready
7. For selected topics refee, RBI annual report, yearbook, FINMIN website, Min of Trade &
commerce website, india.gov.in.
I think that will be more than enough. But practice answer writing.
Good Luck
Written Jun 4, 2015 View Upvotes
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Siddarth Tiwari, MCA, LLB, Banker

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Economy can seem to be a nightmare. But treat it as just another subject. Its logical so u need not
mug most of it except schemes and policies. The key to the mystry is syllabus given by UPSC
and previous year papers which will act as lamp in you journey.
STEPS:
1. Start with Ramesh Singh book by TMH publication. If you are in Delhi, buy Shriram's
(Coaching in Delhi) Book on Economy. I would recommend latter as it is updated and
more suitable for the exams.
2. Watch video lectures on economy @mrunal.org for better understanding of concepts.
3. After following above two steps you will have background in basics and will be able to
understand economic news and understand consequences of movement of inflation and
rates. Till that level use above two sources on SOS basis to understand it. Keep updated
yourself with current news from HINDU as basic questions asked in exam can be related
to it.
4. Now you are equipped to comprehend ECONOMIC SURVEY. Its a specialist document
so it require good understanding of subject. Better to start after completing above steps.

Focus on boxes in every chapter, new schemes and social & physical infrastructure. @
mrunal.org you can find special areas to focus on. Be selected as it can be painful book.
5. Now you will be able found topics and attempt questions. For extra help go through
websites of mrunal, insight, vision ias to understand topics and way to answer.
6. If you come across any topic but you don't material. Simple google it. You will get
articles from all relevent sources and you answer is ready
7. For selected topics refee, RBI annual report, yearbook, FINMIN website, Min of Trade &
commerce website, india.gov.in.
I think that will be more than enough. But practice answer writing.
Written May 16 View Upvotes
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Arman Sethi, mechanical engineer , Love Alternate Rock , Dexter , Prison Break ,
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Economy
A lot of aspirants get scared on hearing the name of economics. But there is nothing to worry. Let
me clarify right in the beginning that you do not need to have prior knowledge of economics to
crack the questions based on it. You will understand concepts as you keep reading. In fact
economics might become your favourite section from the syllabus.Good thing about Indian
Economy is that it is one section of Civil Services Exam where you can avoid a lot of cramming.
To understand Indian Economy better, you need to have the right resources. There are no better
books than NCERTs that would build your fundamental understanding of the subject.
Read the following right at the onset of your preparation:

Principles of Macroeconomics Std XII

Principles of Microeconomics Std XII

Indian Economic Development Std XI

March of the indian economy by I.C dhingra- heed publications

Having an understanding of certain important concepts of Microeconomics, e.g. Law of

Diminishing Marginal Utility, Elasticity of Demands etc would certainly go a long way towards
building your basics. Now you may take up any book that takes up the case of Indian Economy
in detail.
Never Forget The Budget & Economic Survey of India:
Collect the Economic Times or Business Standard, that gets published the very next day when
the Budget is discussed in the Parliament. Jot down all important policy decisions of the
Government of India. The Economic Survey of India is the finest and the most comprehensive
document about the state of Indian Economy. It gives you the rationale behind every policy
decision, comparative analyses, Important Welfare Schemes and the road map for the future of
Indian Economy.
Written Jun 2
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Kiran Singh
1k Views Most Viewed Writer in Civil Services Preparation
1. Start With NCERT Enomony Books From class 612.
2. Then start with Ramesh Singh .
3. Economy may be daunting to some, but the questions are based on your conceptual
understanding of macroeconomics. No matter how many times you read and mug-up the
data, you are bound to falter in the exam. Conceptual clarity is what matters the most in
Economics.
4. How to Study Economics?
Some of them have misconceptions that Economics is only about money. No its about choices.
Choices or decisions made based on the resource available (time, capability, money, interest etc.)
Decisions made in midst of alternatives at the National level is known as Macroeconomics
(Government making a decision to blend 10% Ethanol in petrol) and if the same
choices/decisions are made at the individual level, it is known as Micro-economics.
Economics has so much of relevance to our day-to-day lives. Be it the choice that you make to
take-up this exam or even choose or website IASbaba for your preparation. Its all about
making choices suiting to your needs and available resources.
This makes reading Economics enjoyable and meaningful !!

Once you get hold of this subject, it will take very less time to revise and also more accuracy can
be achieved in the exam.
Focus:
Understanding the basic concepts of:

MacroEconomics Poverty, Growth, Employment etc

Microeconomics decisions/choices made at a company, household or an individual

level

Difference between Growth and Development; indicators used to measure.

Example: To measure Growth- GDP is used and for Development HDI (Human
Development Index)

National Income Accounting Gross National Product (GNP), Gross Domestic Product
(GDP), Gross National Income (GNI), Factor cost, Market Price, Purchasing power
parity(PPP), Per-Capita Income (PCI) a general understanding on how they are
calculated and what all factors go into their calculation

Example: GDP is calculated using either of the following 3 methods- production method,
expenditure method, income method.

Primary , Secondary, Tertiary Sectors what constitutes each sector? What are their
contributions to the GDP

Example: Primary sector covers agriculture and allied activities, mining . It contributes
13.7% to Indias GDP

Capitalist, State, Mixed Economic System which type of Economic system India has
adopted and why?

1. Growth & Development

Focus:

Poverty concepts like Below Poverty line (BPL), Poverty Gap, Poverty estimates by
National Sample Survey Organisation (NSSO), which Institution in India decides on
Poverty line- Planning Commission

Different Committees set-up to measure poverty, methodology used Alag committee,

Lakadwala, Suresh Tendulkar Committee, NC Saxena Committee, Rangarajan

Committee A general understanding of how each committee differed in their

measurement.

Example: Rangarajan Committee was set-up by Planning Commission in 2012;

Methodology used is Monthly Expenditure of family of five. According to the
estimates- poverty per day per person in urban area is 47 Rs and in rural area it is 32 Rs

Inequality how is it measured Gini co-efficient , Lorenz Curve; concepts like relative
inequality, absolute inequality.

Issues with employment, different types of unemployment like disguised

unemployment, underemployment etc; Globalization and its impact on labour.

Demographic Dividend, Skill Development

Development Indicators from International organisations like HDI, MPI (Multiple

Poverty Index), Millennium Development Goals etc.

1. Inflation and Business Cycle

Focus:

Inflation, Depression, Recession and related terms and concepts like deflation,
disinflation, reflation, stagflation, Philips curve

Types of Inflation based on the rate of growth of the prices creeping, trotting,
galloping, hyper-inflation

Types of Inflation based on the causes Demand-pull, Cost-push, Structural,

Speculation.

Impact of Inflation on Indian Economy, different stakeholders in the economy. Is a ...

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Siva Prasad, content writer, www.aspirantsclass.com

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ECONOMIC AND SOCIAL DEVELOPMENT:

In syllabus it was given as Economic and Social Development - Sustainable development,

Poverty, Inclusion, Demographics, Social sector initiatives.
1. First complete NCERT books(new ed) of IX, X, XI, and XII.
IX - Economics - 4 chapters
X - Understanding Economic Development - 5 chapters
XI - Indian Economic Development - 10 chapters
XII - Introductory Macroeconomics - 6 chapters
Altogether there are 25 chapters.
2. Make note of key points mentioned in the UNION BUDGET 2016-17 (all the
finance/economic terms mentioned in the budget are highly important)
3. Read about Finance commission and recommendations of latest finance commission
4. Financial relations between center and state
5. There are 5 important chapters (Chapters 6,7,13,14 and 23) related to economics in
India 2016 Reference Annual.
6. Follow Finance / Economy News (The Hindu / Business standard / Live Mint )
7. Read Economic survey 2015-16 Volume 2
8. Make detailed notes on Social Sector schemes announced by the government for the
welfare of Women, child, Minorities, elderly, disabled, labour, poor etc
9. Sustainable development can be covered in Environmental ecology, biodiversity and
climate change part of the syllabus.
10 . Demographics can be covered under Social geography
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Bhavish Mahipal, From Ignorance to Knowledge,from Knowledge to Awareness!

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As far as economics is concerned,go through the notes of any decent coaching institute for
saving time and getting on the track quickly.
You will easily grasp the various terms related to economy this way and save yourself from
studying unnecessary things.
This will be the best way to proceed if you have not studied it previously.
Then go for Indian Economy by Ramesh Singh and side by side the current affairs related to
economy.
Written Sep 11, 2014 View Upvotes
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Navdeep Singh Pundhir, Manager-to-be@ RBI

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Okay so let me tell you how i went from a guy with no background in economics to the one who
could not only master it at the personal level but also clear rbi grade b written which is
dominated by economics and finance!
I was clueless to begin with, couldnt make sense of anything at all. I started to read newspapers,
spent hours and hours with it trying to make sense. Though every concept in economics wa alien
to me, i noticed a pattern. Each newspaper article when mentions about a concept, say fiscal
deficit also gives a brief definition or an explanation or a history of it.
So even if it is totally new to you today, in three weeks you would have read about te same
concept almost ten times so your mind stops freaking out saying i dont know this. Instead it says,
oh i know this!
Thats the beginning!
You need to read these books and you will be done with theoretical background for all exams
including rbi grade b plus civil services:
1. uma kapila- indian economy since independence :it is more researched and relevant than
dutt n sundram or misra and puri. Ramesh singh is a waste of time and money!
2. The undercover economist: tim harford: covers micro
3. The undercover economist strikes back: covera macro
Read them once or read them twice as long as you feel comfortable. Mrunal and all other blogs
claiming they give you tricks and shortcuts are bogus! Nobody can replace the sweat you need to
invest!

Anyways, read business standard daily! It is by far the best public economy newspaper in the
country!
All the best :)
Written Mar 9 View Upvotes Answer requested by Debabrata Mishra
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Akriti Mattu, Digital Marketing Specialist, Blogger, Traveler, Ex CSE Aspirant

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Start with ICSE Books for Economics - Classes XI and XII.
Then go through NCERTs.
Finally start reading Indian Economy by Ramesh Singh (Its the best book to build a good
foundation even for students who have never studies Economics before)
You can also refer to the book by Uma Kapila.
Remember that traditional questions for economy are not really asked. Youll have to relate
concepts of economics to current affairs. So read newspapers like Economic Times and
magazines like Business Standard.
Reading the Economic Survey of the year of the exam is a MUST.
https://www.quora.com/How-should-I-start-preparing-civil-services-for-the-economysubject-of-the-IAS-UPSC