RBI Grade B Officer Economic and Social Issues (ESI) Syllabus

Economic and Social Issues (ESI) syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Economic and Social Issues (ESI) in RBI Grade B Officer, not a summary of it.

1. 1

   Growth and Development

   4 topics

   • Measurement of Growth and Development
     • National Income, GDP, GNP, NNP concepts
     • Human Development Index (HDI) and its components
     • Sustainable Development Goals (SDGs)
   • Theories and Determinants of Growth
     • Harrod-Domar and Solow growth models (overview)
     • Role of capital, labour, and total factor productivity
   • Poverty Alleviation and Employment in India
     • Poverty estimation methods (Tendulkar, Rangarajan committees)
     • Employment generation schemes (MGNREGA, PMEGP)
     • Unemployment types and measurement
   • Inequality and Inclusive Growth
     • Gini coefficient and Lorenz curve
     • Financial and social inclusion
2. 2

   Indian Economy and Reforms

   4 topics

   • Structure of the Indian Economy
     • Primary, secondary, tertiary sector composition
     • Demographic dividend and population trends
   • Economic Planning and Liberalization
     • Five-Year Plans to NITI Aayog transition
     • 1991 LPG reforms (Liberalisation, Privatisation, Globalisation)
   • Agriculture and Rural Economy
     • Green Revolution and food security
     • Minimum Support Price and APMC reforms
   • Industrial and Services Sector Policy
     • Make in India, PLI schemes
     • MSME sector and its challenges
3. 3

   Globalization and the Indian Economy

   3 topics

   • Opening Up of the Indian Economy
     • Trade liberalization and tariff reforms
     • Foreign Direct Investment (FDI) policy
   • International Economic Institutions
     • World Bank, IMF, WTO and India
     • Regional trade blocs and FTAs
   • Balance of Payments and Trade
     • Current and capital account structure
     • Export-Import policy framework
4. 4

   Social Structure and Sustainable Development

   4 topics

   • Social Sectors in India
     • Health: NRHM, Ayushman Bharat
     • Education: RTE, NEP 2020
   • Social Justice and Demographics
     • Gender issues and women empowerment schemes
     • Urbanisation and migration
   • Environment and Sustainability
     • Climate change agreements (Paris Agreement, COP)
     • Renewable energy and carbon targets
   • Social Infrastructure and Governance
     • Public-private partnership models
     • Direct Benefit Transfer and welfare delivery

Economic and Social Issues (ESI) flashcards for RBI Grade B Officer

25 of 50 cards from the Economic and Social Issues (ESI) deck — real questions with worked answers.

1. What is the difference between economic growth and economic development?

   Economic growth is a quantitative increase in a country's real national output/GDP over time. Economic development is a broader qualitative concept that includes growth plus improvements in living standards, health, education, equity, and structural change.

2. What does Gross Domestic Product (GDP) measure?

   The total monetary value of all final goods and services produced within a country's domestic territory during a given period (usually one year).

3. How is Gross National Product (GNP) derived from GDP?

   GNP = GDP + Net Factor Income from Abroad (income earned by residents abroad minus income earned by foreigners domestically).

4. What is the difference between nominal GDP and real GDP?

   Nominal GDP is measured at current market prices, while real GDP is measured at constant (base-year) prices, removing the effect of inflation.

5. What is the GDP deflator and how is it calculated?

   The GDP deflator measures the price level of all domestically produced goods. GDP deflator = (Nominal GDP / Real GDP) × 100.

6. What are the three indicators combined in the Human Development Index (HDI)?

   Life expectancy at birth (health), expected and mean years of schooling (education), and Gross National Income per capita in PPP terms (standard of living).

7. What is Net National Product (NNP) at factor cost, also called National Income?

   NNP at factor cost = GNP - Depreciation - Net Indirect Taxes (indirect taxes minus subsidies). It is India's National Income.

8. What is Purchasing Power Parity (PPP)?

   A method of comparing economies by equalizing the purchasing power of currencies, adjusting for differences in price levels rather than using market exchange rates.

9. What does the Multidimensional Poverty Index (MPI) measure?

   Acute poverty across three dimensions—health, education, and standard of living—using 10 indicators, capturing overlapping deprivations beyond income.

10. State the Harrod-Domar growth model's central idea.

    Economic growth depends on the savings rate (s) and the capital-output ratio (k); growth rate g = s/k. Higher savings and higher capital efficiency raise growth.

11. What is the key conclusion of the Solow (neoclassical) growth model regarding long-run growth?

    In the long run, sustained per capita growth comes from technological progress, not merely capital accumulation, because capital is subject to diminishing returns; economies converge to a steady state.

12. What is the capital-output ratio (COR)?

    The amount of capital required to produce one unit of output; the Incremental Capital-Output Ratio (ICOR) measures additional capital needed per additional unit of output—lower ICOR means more efficient capital use.

13. What is the demographic dividend?

    The economic growth potential arising from a rising share of the working-age population (15-64) relative to dependents, increasing the labour force and savings.

14. In endogenous growth theory, what drives long-run growth?

    Internal factors such as human capital, innovation, R&D, and knowledge spillovers, which can produce increasing returns and sustain growth without relying solely on external technology.

15. How does the Tendulkar Committee define the poverty line in India?

    Based on per capita monthly consumption expenditure on a basket including food, education, health, and other items, using Mixed Reference Period data—rejecting the earlier calorie-only approach.

16. What poverty estimation approach did the Rangarajan Committee (2014) recommend?

    Separate rural and urban poverty lines based on consumption of food (adequate calories, protein, fat) and essential non-food items, yielding higher poverty estimates than the Tendulkar line.

17. What does MGNREGA guarantee?

    The Mahatma Gandhi National Rural Employment Guarantee Act (2005) guarantees 100 days of wage employment per financial year to every rural household whose adult members volunteer for unskilled manual work.

18. Define the unemployment rate as per Indian labour statistics.

    The percentage of persons unemployed among the labour force (those employed plus those seeking and available for work).

19. What is the Labour Force Participation Rate (LFPR)?

    The percentage of the working-age population that is either working or actively seeking work.

20. Differentiate disguised unemployment and structural unemployment.

    Disguised unemployment: more workers engaged than needed (common in agriculture) so marginal productivity is near zero. Structural unemployment: mismatch between workers' skills/location and available jobs due to economic structural changes.

21. What is the Gini coefficient?

    A measure of income/wealth inequality ranging from 0 (perfect equality) to 1 (perfect inequality), derived from the Lorenz curve.

22. What does the Lorenz curve represent?

    A graph plotting the cumulative share of income against the cumulative share of population; the farther it bows from the 45-degree line of equality, the greater the inequality.

23. What are the pillars of inclusive growth as emphasized in Indian planning?

    Broad-based growth that reduces poverty and inequality, expands employment, ensures access to education, health, and basic services, and includes marginalized groups (gender, region, caste).

24. What is the Kuznets curve hypothesis on inequality?

    As an economy develops, income inequality first rises and then falls, forming an inverted-U shape relative to per capita income.

25. What are the three main sectors of an economy by classification?

    Primary (agriculture, mining, extraction), Secondary (manufacturing, industry, construction), and Tertiary (services).

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