UPSC CSE Indian Economy Syllabus

Indian Economy syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Indian Economy in UPSC CSE, not a summary of it.

1. 1

   Economic Planning in India

   3 topics

   • Five Year Plans
   • NITI Aayog
   • Liberalization, Privatization, and Globalization
2. 2

   Agriculture and Rural Development

   3 topics

   • Green Revolution
   • Rural Credit System
   • Agricultural Marketing and Reforms
3. 3

   Banking and Finance

   3 topics

   • RBI and Monetary Policy
   • Financial Inclusion
   • Recent Financial Reforms

Indian Economy flashcards for UPSC CSE

23 of 54 cards from the Indian Economy deck — real questions with worked answers.

1. When did India launch its First Five Year Plan, and which model did it follow?

   The First Five Year Plan ran from 1951-56 and was based on the Harrod-Domar model, emphasizing agriculture and irrigation.

2. Which model formed the basis of India's Second Five Year Plan and who designed it?

   The Mahalanobis model, designed by statistician P.C. Mahalanobis, emphasizing rapid industrialization and heavy/capital goods industries.

3. Which Five Year Plan is associated with the 'Plan Holiday' and why did it occur?

   After the Third Plan (1961-66), there were three Annual Plans (1966-69) called the Plan Holiday, caused by the Indo-China and Indo-Pak wars, droughts, and devaluation of the rupee.

4. What was the main objective/slogan associated with the Fifth Five Year Plan?

   Removal of poverty (Garibi Hatao) and attainment of self-reliance; it introduced the Minimum Needs Programme.

5. Which Five Year Plan introduced the concept of inclusive growth as its theme?

   The Eleventh Five Year Plan (2007-12) had the theme 'Towards Faster and More Inclusive Growth.'

6. What was the model/approach used in the Eighth Five Year Plan (1992-97)?

   It was based on the Rao-Manmohan model of economic liberalization; it began after the 1991 reforms and focused on human resource development and energy/transport.

7. Which body in India was responsible for formulating Five Year Plans, and when was it set up?

   The Planning Commission, set up in 1950 by a cabinet resolution (not a constitutional or statutory body); it was chaired by the Prime Minister.

8. When was the Planning Commission replaced, and by what body?

   It was replaced by NITI Aayog on 1 January 2015.

9. What does the acronym NITI Aayog stand for?

   National Institution for Transforming India.

10. What is the nature of NITI Aayog (constitutional/statutory/executive)?

    It is an executive (non-statutory, non-constitutional) body created by an executive resolution of the Union Cabinet.

11. Who is the Chairperson and who heads the day-to-day functioning of NITI Aayog?

    The Prime Minister is the Chairperson; the Vice-Chairperson and the CEO (a civil servant) handle functioning. A full-time Vice-Chairperson leads it operationally.

12. What is the composition of NITI Aayog's Governing Council?

    The Governing Council comprises the Chief Ministers of all states, Lieutenant Governors of UTs, and is chaired by the Prime Minister.

13. Name two key functional differences between NITI Aayog and the erstwhile Planning Commission.

    NITI Aayog is a think tank/advisory body with no power to allocate funds and promotes cooperative federalism (bottom-up), whereas the Planning Commission allocated funds to states and imposed top-down plans.

14. What does LPG stand for in the context of 1991 reforms, and in which year were they introduced?

    Liberalization, Privatization, and Globalization, introduced in 1991 under PM Narasimha Rao and FM Manmohan Singh in response to a balance of payments crisis.

15. What event triggered the 1991 economic reforms in India?

    A severe Balance of Payments crisis, with forex reserves enough for only about 2 weeks of imports, forcing India to pledge gold to the Bank of England/IMF.

16. Define 'Liberalization' in the context of the 1991 reforms.

    The relaxation of government restrictions and controls (e.g., abolition of industrial licensing/License Raj, reducing reservations for the public sector) to give greater freedom to the private sector.

17. What was the 'License Raj' that liberalization sought to dismantle?

    The elaborate system of licenses, permits, and regulations required to set up and run businesses in pre-1991 India; industrial licensing was abolished for most industries in 1991.

18. Define 'Disinvestment' as a tool of privatization.

    The sale or dilution of the government's equity stake in a public sector undertaking (PSU) to private entities or the public, while often retaining majority control.

19. What is the difference between 'strategic disinvestment' and 'minority disinvestment'?

    Strategic disinvestment transfers management control by selling 50% or more of government stake; minority disinvestment sells less than 50%, with the government retaining management control.

20. What does the New Economic Policy of 1991 involve regarding the rupee?

    Devaluation of the rupee in 1991 and a move toward a market-determined exchange rate (LERMS in 1992, leading to current account convertibility by 1994).

21. What was the Green Revolution in India and who is called its 'Father'?

    The Green Revolution (late 1960s) was the introduction of High-Yielding Variety (HYV) seeds, fertilizers, irrigation, and modern techniques that raised foodgrain output, especially wheat; M.S. Swaminathan is called the Father of the Indian Green Revolution.

22. Which crops and regions benefited most from India's Green Revolution?

    Wheat and rice benefited most, concentrated in Punjab, Haryana, and western Uttar Pradesh.

23. Name two major criticisms or negative impacts of the Green Revolution.

    Regional and crop disparities (mainly benefited wheat/rice in northwest India) and environmental degradation such as soil depletion, falling water tables, and overuse of fertilizers/pesticides.

See more Indian Economy flashcards →

Planning Indian Economy for UPSC CSE

Indian Economy (UPSC CSE) FAQ