RBI Grade B 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, not a summary of it.

1. 1

   Growth and Development

   4 topics

   • Measurement of Growth
     • National Income concepts (GDP, GNP, NNP)
     • Real vs Nominal GDP and GDP deflator
     • Per capita income and limitations
   • Human Development
     • Human Development Index (HDI)
     • Multidimensional Poverty Index
     • Gender and inequality-adjusted indices
   • Sustainable Development
     • Sustainable Development Goals (SDGs)
     • Green GDP and environmental accounting
   • Sectoral Composition
     • Primary, secondary, tertiary shares
     • Structural transformation of the Indian economy
2. 2

   Poverty, Inequality and Unemployment

   4 topics

   • Poverty Estimation
     • Tendulkar and Rangarajan committees
     • Poverty line methodology
   • Inequality Measures
     • Gini coefficient and Lorenz curve
     • Income vs wealth inequality
   • Unemployment
     • Types: structural, cyclical, frictional, disguised
     • PLFS and measurement (UPS, CWS)
   • Anti-poverty and Employment Schemes
     • MGNREGA
     • National Rural and Urban Livelihood Missions
3. 3

   Indian Economy: Demographics and Social Sectors

   4 topics

   • Demographics
     • Census and population trends
     • Demographic dividend and ageing
   • Education
     • Right to Education and National Education Policy 2020
     • Literacy and gross enrolment ratios
   • Health
     • Ayushman Bharat and health infrastructure
     • Key health indicators (IMR, MMR, life expectancy)
   • Social Justice and Inclusion
     • Women empowerment schemes
     • Welfare of SC/ST/OBC and differently-abled
4. 4

   Globalisation and Economic Reforms

   4 topics

   • 1991 Reforms (LPG)
     • Liberalisation, Privatisation, Globalisation
     • Balance of payments crisis context
   • Opening of the Economy
     • FDI and FII policy evolution
     • Trade liberalisation and tariffs
   • Social Impact of Globalisation
     • Effects on labour and informal sector
     • Regional disparities
   • International Economic Institutions
     • IMF, World Bank, WTO
     • India and global trade agreements
5. 5

   Indian Financial and Banking Landscape

   4 topics

   • Financial Inclusion
     • Jan Dhan Yojana and DBT
     • Priority sector lending
   • Infrastructure and Investment
     • PPP models
     • Gati Shakti and National Infrastructure Pipeline
   • Industrial and MSME Policy
     • Make in India and PLI schemes
     • MSME definition and support
   • Agriculture and Food Security
     • MSP and procurement
     • Public Distribution System

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

25 of 51 cards from the Economic and Social Issues (ESI) deck — real questions with worked answers.

1. What is the difference between GDP at market price and GDP at factor cost?

   GDP at market price = GDP at factor cost + Net Indirect Taxes (Indirect Taxes - Subsidies). Factor cost reflects what producers receive; market price reflects what consumers pay.

2. What is Gross Value Added (GVA) and how does it relate to GDP?

   GVA = value of output - value of intermediate consumption, measured at basic prices. GDP = GVA + Product Taxes - Product Subsidies. India's CSO now headlines GVA alongside GDP.

3. Which base year does India currently use for computing real GDP (as revised by CSO)?

   The 2011-12 base year (replacing the earlier 2004-05 series in the 2015 revision).

4. What is Per Capita Income and how is it calculated?

   Per Capita Income = National Income (NNP at factor cost) / total population. It is a key average measure of a country's standard of living.

5. What is the Inequality-adjusted HDI (IHDI)?

   The IHDI discounts the HDI for inequality in each of its three dimensions (health, education, income); when there is no inequality, IHDI equals HDI, and the gap measures the loss due to inequality.

6. Which three deprivation dimensions and how many indicators make up the global Multidimensional Poverty Index (MPI)?

   Three equally-weighted dimensions - Health, Education, and Standard of Living - measured through 10 indicators. A person is 'MPI poor' if deprived in at least one-third (33%) of the weighted indicators.

7. What is the Gender Inequality Index (GII) and what does a higher value indicate?

   A UNDP composite measuring gender disparity across reproductive health, empowerment, and labour market participation. A higher GII value indicates greater inequality (worse gender outcomes).

8. What are the three Es that define Sustainable Development?

   Economy, Environment, and Equity (often phrased as economic, environmental, and social sustainability) - meeting present needs without compromising future generations' ability to meet theirs (Brundtland definition, 1987).

9. How many Sustainable Development Goals (SDGs) and targets did the UN adopt in 2015, and by when are they to be achieved?

   17 SDGs with 169 targets, adopted in 2015 under Agenda 2030, to be achieved by the year 2030.

10. What is the difference between weak sustainability and strong sustainability?

    Weak sustainability assumes natural capital can be substituted by man-made capital (total capital stock must be maintained); strong sustainability holds that critical natural capital is non-substitutable and must be preserved in its own right.

11. What does the Environmental Kuznets Curve (EKC) hypothesize?

    An inverted-U relationship between environmental degradation and per capita income: pollution rises with early growth, peaks, then falls as income rises and societies invest in cleaner technology.

12. What is the Lewis model of structural transformation (dual-sector model)?

    W. Arthur Lewis's model where surplus labour from a low-productivity traditional/agricultural sector shifts to a high-productivity modern/industrial sector, driving development until the 'Lewis turning point' when surplus labour is exhausted.

13. What is premature deindustrialisation in the Indian context?

    When the manufacturing sector's share of output and employment peaks and declines at a lower per capita income than historically seen in developed economies, with labour moving from agriculture largely to services rather than industry.

14. What is the difference between absolute poverty and relative poverty?

    Absolute poverty is the inability to afford a fixed minimum bundle of basic needs (a fixed poverty line); relative poverty measures deprivation relative to the prevailing standard of living in society (e.g., income below a fraction of the median).

15. What did the Lakdawala Committee (1993) recommend on poverty estimation?

    It recommended estimating poverty using state-specific poverty lines based on a calorie norm (2400 kcal rural, 2100 kcal urban) and updating them using state-level price indices (CPI-AL for rural, CPI-IW for urban).

16. What was the calorie norm basis of the Alagh Committee (1979) poverty line?

    It defined the poverty line on minimum daily calorie intake of 2400 kilocalories per person in rural areas and 2100 kilocalories in urban areas.

17. What is the headcount ratio (HCR) measure of poverty?

    The proportion of the population whose consumption/income falls below the poverty line, expressed as a percentage. It measures the incidence (spread) but not the depth or intensity of poverty.

18. What is the poverty gap index?

    It measures the average shortfall of the poor from the poverty line (as a proportion of the line), capturing the depth/intensity of poverty rather than just how many are poor.

19. What is the Palma ratio of inequality?

    The ratio of the income share of the richest 10% of the population to that of the poorest 40%. A higher Palma ratio indicates greater income inequality.

20. What does the Theil index measure and what is its advantage?

    The Theil index is an entropy-based measure of inequality; its key advantage is decomposability - it can break overall inequality into 'within-group' and 'between-group' components.

21. On the Lorenz curve, what is the line of perfect equality and how does the Gini relate to it?

    The line of perfect equality is the 45-degree diagonal. The Gini coefficient equals the area between the diagonal and the Lorenz curve divided by the total area under the diagonal (Gini = A/(A+B)).

22. What are the three approaches (statuses) used to measure employment/unemployment in India's surveys?

    Usual Status (US, reference period of 365 days), Current Weekly Status (CWS, reference of 7 days), and Current Daily Status (CDS, reference of each day/half-day). CDS gives the most comprehensive picture of unemployment.

23. What is frictional unemployment?

    Short-term, transitional unemployment that occurs when workers are between jobs or searching for their first job; it exists even in a healthy economy and is considered voluntary/temporary.

24. What is cyclical unemployment?

    Unemployment caused by a downturn in the business cycle (a fall in aggregate demand during recessions); it disappears when the economy recovers.

25. What is the Worker Population Ratio (WPR)?

    The percentage of employed persons in the total population (number of employed / total population x 100). It indicates the proportion of the population actually engaged in work.

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