The right ECONOMICS

Economics - a good Optional for UPSC

With the UPSC Prelims paper conducted on May 25, 2025 the next step is to look at which subjects would serve the best for Optional subjects for Mains.

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As far as the questions on economics were concerned, those were inclined towards application-based knowledge of existing government schemes, economic indicators, and policy effect. Economics  is a good optional for UPSC — provided you have an analytical mindset and are comfortable with graphs, data interpretation, and economic theories. The subject is highly relevant, overlaps with GS papers, and helps in interview discussions.

Syllabus

Economics Optional Subject has two papers in UPSC Mains. Each paper is of 250 marks with a total of 500 marks. Paper 1 includes Microeconomics, Macroeconomics and Growth and Development. Under Microeconomics, we study the theories of consumers’ and producers’ behaviour followed by the theories of main types of market structures like perfect competition, monopoly, and oligopoly. Macroeconomics, on the other hand, is associated with the study of economic aggregates like output level, general price level, interest rates, unemployment, wages, etc. and their behaviour. We study various schools of Macroeconomics like the Classicals, the Keynesians, the Neo Keynesians, the Monetarists, the New Classicals, and the New Keynesians and their theories on the behaviour of these Macroeconomic variables. We also study Microeconomic theories of international trade, trade barriers, trade blocks, etc., followed by the Macroeconomic theories of the open economy, including concepts like the balance of payments and exchange rates.

Optional Syllabus 2025 for Paper 2 includes the Indian Economy before the liberalisation and post-liberalisation period. The Pre-independence Indian Economy encompasses various features of the Indian economy, like agriculture, industries, railways, etc., during the British Rule. The Post-independence Indian economy includes the study of various sectors like agriculture and industries, economic problems like inequality, poverty, and unemployment, and policies like planning during the period from 1947 to 1991 and also post 1991 policies and  reforms.

Who should opt for it

This subject combines technical, analytical, and logical elements with contemporary relevance. Generally, a background in economics during one’s undergraduate studies or a fundamental understanding of introductory mathematics and statistics is preferred in Economics.

While Paper I in UPSC Economics Optional Syllabus is majorly conceptual and static, Paper 2 requires greater attention to contemporary events with greater emphasis on updated information and conceptual clarity.

Why should you gravitate towards Economics

Choosing economics optional can be a very good decision due to various reasons. First, it has a significant overlap with General Studies(Economy, Agriculture, and Environment) and also with other subjects such as Public Administration. So, you can kill two birds with one stone. Secondly, it is a scoring subject as both the questions and answers can be structured well and you can score according to the value points raised. Also, it is a subject of high relevance in current affairs and also the interviews. Knowledge of current economic affairs prepares you in a better way for the interviews also. Besides, there is a plethora of resources available both offline and online making it easier to prepare.

Prepping up

Keep the following points in mind while prepping:

For paper 1, it is imperative for you to master economic theories and link them with the Indian Economy. Questions may directly ask for these links or students can show them briefly for extra marks. Also practice graphical interpretations and basic mathematical tools (functions and differentiation).Since the paper would involve drawing and interpreting graphs and economic trends it is better to be proficient in drawing conceptually correct graphs.

For paper 2 focus on accurate rather than lengthy answers. Prepare thoroughly for pre-independence Indian Economy as questions are regularly asked from this area.

Similarly, prepare for post-independence and pre-1991 economies. You may have to memorize critical data points and also analyse performance indicators like GDP growth, sectoral employment shares, and the like. Since 1991 marks a watershed year in terms of economic reforms, you may expect a diverse array of questions talking about those reforms and their implications. Mere memorization would not serve the purpose; look for establishing linkages between various policies e.g., industrial reforms linked to foreign investment and unemployment.

Therefore, if you wish to score well and stay relevant and current throughout your life, develop an interest in Economics and go for it as an optional subject in UPSC.