Economy UPSC Syllabus

23rd April 2022

GS MICRO TOPICS

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::Economy::

Economy (Prelims)

BASIC CONCEPTS

Macroeconomic Concepts
- Meaning of Economics
- Types of Economies
- Sectors of an Economy
- Other Sectors of Economy??
Microeconomic Concepts

ECONOMIC MEASUREMENTS

National Income Concepts and Methods of Calculation
- National Income
- Real National Income
- Calculating National Income
- Gross Fixed Capital Formation (GFCF)
- National?Organizations?Related to National Income Accounts?
- Latest India’s National Income Estimates
- New Series of National Statistics (Base Year 2011-12)
- Annual Estimates of Expenditures on GDP
- Per Capita Income
- Purchasing Power Parity
- Lorenz Curve
- Philip’s Curve
- Gini Coefficient
?Inflation
- Concepts and Types of Inflation
- Causes of Inflation
- Effects of Inflation
- Measures of Inflation
  - WPI, CPI
  - Producer Price Index
  - GDP Deflator
  - Core Inflation
- Change in Reporting of Inflation
- Measures to Check Inflation??
  - Fiscal Measures
  - Administrative Measures
  - Monentary Measures
- Economic Growth and Development
  - Economic Growth
  - Economic Development
  - Measurement of Economic Development
  - Physical Quality of Life Index (PQLI)
  - Millennium Development Goals (MDGs)
  - Different Levels of Economic Development
  - Economy and Environment?
  - Environment?Taxes
    - Carbon Tax
    - Green Accounting
  - 12^th Five Year Plan and Sustainability?

MONEY AND BANKING

Money Function and Classification
- Money Concept
- Measures of Money Supply in India
- Indian currency system
- Broad and Narrow Money
- Money multiplier
- Digital Money
- New Monetary Aggregates
- Monetary Policy
Financial Market and its Instruments
- Concept and functions of financial markets
- Importance of money market
- Types of capital market
- Distinguish between capital market and money market
- Nature and functions of a stock exchange
- Advantages of stock exchanges
- Limitations of stock exchanges
- The stock exchanges in India
- Insurance Industry – Insurance Industry and Reforms
- Role of Financial Regulators: SEBI and IRDA
Banking Structure in India
- Scheduled Commercial Banks
- Nationalized?Banks
- Public Sector Banks?
  - State Bank of India
- Private Banks
- Foreign Banks
- Regional Rural Banks
- Scheduled Co-operative Banks
- Reserve Bank of India (RBI)
- Methods of Credit Control
- Cash Reserve Ratio (CRR)
- Statutory Liquidity Ratio (SLR)
- Repo Rate
- Reserve Repo Rate
- Call Rates
- Marginal Standing Facility (MSF)
- Bank Rate
- Banking Sector Reforms in India
- Differentiated Banks
  - Payment Banks
  - Small Banks
- New banking licence
- White Label ATM
- Unified Payments Interface
- Bank Board Bureau
- Marginal Cost of Funds Based Lending Rate (MCLR)
- Priority Sector Lending Certificates
- Concept of Micro ATM
- Banking Reforms
- Basel Norms
- Banking Ombudsman
- Development Financial Institutions
- Insurance Companies
- Recent developments in Economic Sector
  - Government to recapitalize the PSB’s
  - RBI rule and regulation for peer to peer (P2P) lending
  - Domestic Systematically Important Banks (SIBs) of India
  - Financial Inclusion in India
  - The Concept of Bad Bank
  - Alternative Mechanism Panel for PSB consolidation
  - Employee Provident Fund of India
  - Enforcement Department In RBI
  - Gold Monetization Scheme (GMS)
  - Indian Post Payment Bank (IPPB)
  - Indian Gold Coins/Gold Bullion Scheme

PUBLIC FINANCE IN INDIA

Budgeting
- Union Budget
- Plan and Non Plan Expenditure
- Revenue Receipts
- Tax Revenue Receipts
- Non-Tax Revenue Receipts
Fiscal Policy
- Fiscal Responsibility and Budget Management (FRBM) Act, 2003
- Revenue Deficit, Fiscal Deficit, Primary Deficit
- Deficit and Surplus Budget
- Deficit Financing
Centre State Distribution
- Finance Commission (A280)
Tax Structure in India
- Tax – Direct Tax, Indirect Tax
- Methods of Taxation – Progressive,
  Regressive, Proportional
- Value Added Tax – VAT in India
- Goods and Services Tax – GST, GST Council
- Service Tax
- DTC – Direct Tax Code

PLANNING

Meaning Objectives and History
- Meaning of Economic Planning
- Objectives of?Planning
- Strategies of Planning
  - Harrod Domar strategy
  - Nehru Mahalonobis strategy
  - Gandhian strategy
  - LPG strategy
- Regional and National Planning
- Imperative and Indicative Planning
- History of Planning in India
- Visvesvaraya Plan, Gandhian Plan FICCI Proposal, Congress Plan Bombay Plan
- Planning Commission and National Development Council(NDC)
- Central Planning – 5 Year Plans, 20 Point Program, MPLADS
- Decentralized Planning
Planning Institutions
- Planning Commission
- NITI Aayog
- National Development Council (NDC)
Five Year Plans in India
- 12^th Five Year Plan (2012-2017)
- Alternative Scenarios During 12^th Plan
- Economic?Reforms?

OPEN ECONOMY

Foreign Trade Concepts
- Balance of Payments
- Foreign Capital – FDI, FPI, FII, QFH
- Foreign Exchange–Exchange Rate NEER & REER, ETF
- FERA & FEMA
- Capital Account Convertibility in India
- India’s External Debt
- NRI Deposits
- Trade Composition
Trade Policy and Agreements
- Import Cover
- Import/Export Controls
- Foreign Trade policy 2015-20
- Export Promotion
- General Agreement on Tariffs and Trade
Exchange Rate
- Exchange Market
- LERMS
- NEER
- REER
- ETF
International Organization
- United Nations
- Food and Agriculture Organization (FAO)
- International Civil Aviation Organization (ICAO)
- International Fund for Agricultural Development (IFAD)
- International Labour Organization (ILO)
- International Maritime Organization (IMO)
- International Monetary Fund (IMF)
- International Telecommunication Union (ITU)
- United Nations Educational, Scientific and Cultural Organization (UNESCO)
- United Nations Industrial Development Organization (UNIDO)
- Universal Postal Union (UPU)
- World Bank Group (WBG)
- International Bank for Reconstruction and Development (IBRD)
- International Finance Corporation (IFC)
- International Development Association (IDA)
- World Health Organization (WHO)
- World Intellectual Property Organization (WIPO)
- World Meteorological Organization (WMO)
- World Tourism Organization (UNWTO)
- World Trade Organization (WTO)
- Asian Development Bank
- Asian Infrastructure Investment Bank (AII)
- New Development Bank
- African Development Bank
Trade Agreements
- RCEP
- TPP
- NAFTA
- MERCOSUR
- Southern African Development Community (SADC)
- ASEAN
- SAFTA
Recent Developments in External Sector
- Global foreign exchange committee
- Price capping of medical devices in India
- Review of the International Investment Agreement (IIA)
- India signed the OECD multilateral convention to prevent BEPS (Base Erosion and Profit Shifting)
- Second Exchange Traded Fund (ETF) Bharat 22
- Double Tax Avoidance Treaty
- Preferential Trade Agreement with Chile
- Advance Pricing Agreement
- National Committee on Trade Facilitation
- E-tourist Visa
- India’s Asylum Policy
- Investor-State Dispute Settlement (ISDS)

ECONOMIC SECTORS

Poverty
- Definition and Indices
- Poverty?in India
- Human Poverty Index (HPI)
- Expert Groups for Estimating Poverty
- Inequality
Employment
- Employment and Unemployment
- Poverty?Eradication and Employment Related Related programs
Government Schemes and?Programs
- New Social Welfare Schemes
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Other Social Protection?Programmes?
- Rural Infrastructure and Development
- Urban Infrastructure, Housing and Sanitation
- Education Schemes
- Financial Inclusion Schemes
- Health Schemes
- Women Empowerment?Programmes
- Other Women Empowerment?Programmes
- Social?Security
Committees
- Ratan P Watal Committee on Digital Payment
- Committee for Market Infrastructure Institution (MII)
- P. J. Nayak Committee
- Deepak Mohanty Committee Report on Medium-term Path on Financial Inclusion
- Narasimham Committee Report on Banking Sector Reforms
- Uday Kotak Committee on Corporate Governance
- Nachiket Mor Committee

Contemporary Issues: Sectors Of Indian Economy (Mains)

INDUSTRY & LABOUR

Draft National Food Processing Policy Released
Initiatives for Fund for Start-Ups
Companies Need to Look Beyond CSR
Initiatives to Support MSME Sector
Model Shop & Establishment Bill, 2016
National Capital Goods Policy 2016 unveiled
H-1B Visa Rule Change & It’s Impact on IT Sector
Unemployment Survey
Draft Social Security Code
Analysis of Competition Commission of India
Exit Issues and Insolvency Resolution Process
Government Limitations in Job Creation
The Code on Wages, 2019
Amendments in Bankruptcy Code
Contract Worker: Issues and Steps Needed
Feminization of Agriculture
Challenges and opportunities of fourth
Industrial Revolution
Why Manufacturing Sector is not able to Generate Jobs?
Inequality between Large Business Houses & Smaller Businesses
How Labour Regulations Affect Manufacturing?

AGRICULTURE

Niti Aayog Launches Agricultural Marketing & Farm Friendly Reforms Index
Defects in Procurement Policy
Reforming Trade in Agriculture Products
Draft Model APMC Act, 2016
NITI Aayog Report on Agriculture
Agriculture Export Policy, 2018
Farm Policies: One-Size-Fits-All do not Work
Lab to Land: How to Improve
Agriculture Price Policy in India

INFRASTRUCTURE

Inland Waterways in India
Aviation Sector & Regional Connectivity Scheme: Udan
Air Service Agreement
Airline Sector: Downtime and the Turnaround
Privatization of Air India: Critical Analysis
Help Scheme
Multi-Modal Transport System
Bharatmala Pariyojana : Revolution In Indian National Highways
Privatization of Railways
Transformation in Indian Railways
Connecting North East
Optimising Thermal Power in India
Reliable and Affordable Energy
Mineral Auction Rules, 2015

Contemporary Issues: Policy & Reforms In Indian Economy (Mains)

BUDGET & TAXATION

Low Tax to GDP Ratio: Reasons and Suggestions
Public Debt Management Cell
IBBI and Insolvency Rules
Ponzi Scheme and Issues
Fat tax: Concept Analysis
Concept of Municipal Bonds
Lower Taxes, Higher Compliance: Implication on Economy
How Shell Companies are used in Black Money?
Offshore Investments in Tax Havens
Concept of Google Tax and its Implications
Sunset Clause and its Significance in Policies
Government Rule on Capital Gains Tax
Credit Rating Agencies and their Implications
Fugitive Economic Offenders Bill

BANKING & FINANCE

Concept of Wilfull Defaulter

Concept of Shadow Banking
Non Performing Assets
Marginal Cost of Funds based Lending Rate
Unified Payment Interface
India Post Payments Bank
Differentiated Bank Licenses
Digital Payments Scenario
Monetary Policy Committee
Report of Working Group on Development of Corporate Bond Market in India
IL & FS issue and Corporate Governance in India
SEBI reforms on Corporate Governance – Uday Kotak Committee
SEBI and Commodity markets in India
Concept of Crypto-Currencies
Crypto Currencies Come Under SEBI Lens
Corporate Governance: Role of SEBI
Peer to Peer Lending Firms
Bank Recapitalization Program
Lessons on NPA from Global Banks
Need of Regulatory Regime for Alternative Investment Fund
Name and Shame Willful Defaulters

SCHEMES & POLICIES

Sustainable Development Goals
Ease of Doing Business
Critical Analysis of PM Crop Insurance Scheme
Bhavantar Bhugtan Yojana
Operation Greens
Critical Analysis of Banks Board Bureau
Critical Analysis of Draft Energy Policy
Critical Analysis of Stand up India Scheme
New PPP Policy
Sagarmala Project
Critical Analysis of Bharatmala Project
GST ANALYSIS
How GST has Affected Small Business

EXTERNAL SECTOR

FDI Status and Issues in India
Permanent Residency Status for Foreign Investors
WTO Reforms and India’s Stance
Dispute Settlement Mechanism at WTO
Gist of Foreign Trade Policy (FTP) 2015-2020
Reforms in IMF Quota
Rising New Form of Protectionism
BIT Dispute Management Strategy
Broad Based Trade and Investment Agreement (India-EU FTA Talks)
Nachiket Mor Committee
P J Nayak Committee
Vijay Kelkar Committee on PPP Reforms
Parthasarathi Shome Committee on GAAR
Urjit Patel Committee Report on Monetary Policy
Mahapatra Committee (NBFC Loan Restructuring)
Usha Thorat Committee (2012)
Bibek Debroy Committee (Railways)
N K Singh Panel Report on FRBM Act
Shanta Kumar Committee
Watal Committee on Digital Payments
HR Khan Committee on Foreign Portfolio Investment
Strategic Partnership Policy to Boost Defence Manufacturing: Dhirendra Singh Committee

Sectors Of Indian Economy (Mains)

UPSC SYLLABUS

Major crops cropping patterns in various parts of the country
Different types of irrigation and irrigation systems storage
Transport and marketing of agricultural produce and issues and related constraints
e-technology in the aid of farmers
Issues related to direct and indirect farm subsidies and minimum support prices
Public Distribution System – objectives, functioning, limitations, revamping; issues of buffer stocks and food security
Technology missions
Economics of animal-rearing
Food processing and related industries in India- scope and significance, location, upstream and downstream requirements, supply chain management.
Land reforms in India.
Effects of liberalization on the economy
Changes in industrial policy and their effects on industrial growth. Other economic development in field of Manufacturing and service sector

ROLE OF AGRICULTURE IN INDIAN ECONOMY

Land resource
Land-use pattern and Land capability classification
Causes and Impact of Land Degradation
Sustainable Land Management
Steps taken by GOI

LAND REFORMS

Objectives of Land Reforms in India
Progress of Land Reforms in India
NITI Aayog Report on Land Leasing

AGRICULTURE FINANCE

Features of Agricultural Finance
Criteria for Agricultural Credit
Need for Agricultural Finance
Sources of Agricultural Finance
Problems of Agricultural Finance
Measures taken to improve credit flow to agriculture
Co-operative Credit Societies in India

AGRICULTURAL CREDIT INSTITUTIONS

Multi Agency Approach
Commercial Bank
Lead Bank Scheme
Regional Rural Banks
National Bank for Agriculture and Rural Development (NABARD)
Reserve Bank of India
Kisan Credit Card Scheme
Bank Linkage Programme
Rural Infrastructure Development Fund (RIDF)
Government Policy For Agricultural Credit
Farmers Service Societies (FSS)

CROP INSURANCE IN INDIA

Issues Related to Crop Insurance
Pradhan MantriFasalBimaYojana
Comparison with Earlier Crop Insurance Schemes

AGRICULTURE MARKETING

Process of Agricultural Marketing in India
Structure of Agricultural Marketing in India
Importance of Proper Agriculture Marketing
Government Measures to Improve Agricultural Marketing in India
Analysis of APMC Act

SUBSIDIES

Objectives of subsidies
Transfer of resources from gainers from economic policies to losers from economic policies
Farm Subsidies
Fertiliser subsidies
Subsidy on power
Subsidy on irrigation
Rationale of Minimum Support Price
Impact of MSP on inflation
Public Distribution System: Objectives, functioning, limitations,, revamping, evolution from universal PDS to targeted PDS, Targeted PDS, a critical analysis of cost and benefit of PDS
Buffer Stock policy and government’s intervention in food market to keep prices under reasonable limits to help consumers
Food Security bill, questions of resource mobilization for the FSB, criticism of the FSB
Important questions on the future of subsidies

AGRICULTURAL REVOLUTIONS IN INDIA

Green Revolution
White Revolution – Operation Flood
Yellow Revolution
Blue Revolution
Golden Fibre Revolution: Jute

FOOD PROCESSING

Processed Foods Scenario with respect to Specific Sectors
Infrastructure Development in Food Processing Sector
Issues in Food Processing Sector
FDI Policy in Food Processing
Notable Trends in the Indian Food Processing Sector
Strategies Adopted in Budget
New foreign and domestic investment
Sector-specific government policies

INDUSTRIAL POLICY AND INDUSTRIAL DEVELOPMENT: MAIN ISSUES

Mahalanobis strategy and India’s industrial policy-Discussing Industrial policy resolution
1948 and 1956 critically
New Economic Policy and Industrial policy under the policy of liberalization, privatization and globalization
Phases of Industrial development since independence

MAIN FEATURES OF INDUSTRIAL DEVELOPMENT IN INDIA

Roles of private sector and public sector, Investment in the industrial sector, employment, productivity, profit etc.
Strategies for disinvestment and privatization
Role of Small, Medium and Micro enterprises, Government Policy, main problems, effects of globalization
New Manufacturing Policy
Industrial disbursal and Industrial corridors
SEZs- Main issues like land use, relocation of same industries that exist, exports earnings vs loss of tax income
Industrial sickness, institutional mechanism to support the sick industries, exit policy issues
Main constraints in the industrial development of India
Effects of globalization on industries, Sub-prime crisis and sovereign debt crisis on Industry in India
Industrial Finance in India: Role of development banking, commercial banking, venture capital, angel capital in industrialization and promotion of entrepreneurship
Make in India achievements

Policy & Reforms In Indian Economy (Mains)

UPSC SYLLABUS

Indian Economy and issues relating to planning, growth, development and unemployment
Mobilization of resources
Government Budgeting.
Investment models.
Financial and Money Market
Inflation
Direct and Indirect taxes
Inclusive growth & issues arising from it.

INDIAN ECONOMY AND ISSUES RELATING TO PLANNING

Role and objectives of Indian Planning
Planning Experience at the Centre and State level.
Regulatory Role of the State
Development Strategy in India’s Five Year Plan
Mahalanobis’ Four-Sector Growth Model and Employment Generation
Tackling the Problems of Poverty and Unemployment
Vital Role of the Public Sector
Analysis of India’s Economic Performance in Development Planning
Trends in Saving and Capital Formation since Independence
Role of NITI Aayog in Cooperative federalism

RESOURCE MOBILIZATION

Types of Resources: Physical and Financial
Need for Resource Mobilization- Police State and Democratic Welfare State policies
Sources of Resource Mobilization: Public Sector and Private Sector
Taxation and Mobilization of Resources for Economic Growth
Direct Taxes and Mobilisation of Resources
Agricultural Taxation & Resource Mobilisation
Role of Indirect Taxes in Resource Mobilisation
Mobilization of financial resources through Government Revenues
Role of Public Debt in resource mobilization and effects: Market borrowing, loans, grants, etc.
Role of Fiscal and Monetary policies in resource mobilization
Role of Foreign investment in resource mobilization:Desirability and Consequences
Multi-lateral agencies and resource mobilization
Challenges to Resource Mobilization

INCLUSIVE GROWTH AND ISSUES ARISING FROM IT

Meaning and concept of Inclusion
India’s experience of Inclusion
Why India’s growth is not inclusive?: Rural economy based growth, Need of Sustainable agriculture, food security and resilience for growth
What are the solutions?
Inclusion process through Social sector flagship schemes and Ground realities
Public distribution schemes: Can it be the way to inclusive growth
Financial inclusion as an instrument of inclusive growth
Poverty Alleviation and Employment Generation as a strategy for inclusive growth
Social sector development as an instrument for inclusive growth
Public private partnership for inclusive growth
Industrial Integration for inclusive growth
Sectoral and regional diversification as a tool for inclusive growth