Indian Economy | Lecture 4 | Economic Growth & Planning | UPSC 2025*

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Prelims Economics Syllabus for UPSC
Indian Economy syllabus for UPSC prelims/UPSC Economics syllabus for prelims/syllabus of Economics for UPSC prelims:
Economic and Social Development: sustainable development, poverty, inclusion, demographics, social sector initiatives, etc.
Here, you must cover topics such as economic growth and development, finance, banking, budget, balance of payments, poverty and related issues, population composition and related characteristics, social sector initiatives related to education, health and sanitation, and international financial institutions.
Important area to focus in the UPSC economy syllabus:
• Economic growth and development - basic concept and definition of economy and economics, uses and transfer of resources, distributive effects, macro and micro economic policy, micro-macro balance, distributive impact of economic policies, development versus growth, determinant of growth and development, concepts such as HPI/MPI, HDI, PQLI, GEM, GDI/GII, TAI, Green index, sustainable development, India’s ranking in the various indices.
• Poverty - definitions, causes, distribution-deprivation, income versus calories, measurement of poverty, status of poverty, eradication programmes, poverty and resource policy, tribal rights and issues, livelihood mission.
• Inclusion - definition, relevance, types, financial inclusion, recent initiatives.
• Demographics - census data, populations by gender, by state, by age group, socio-economic status, caste, religion, literacy levels, etc. Trends in human development - interstate comparison, etc.
• Fiscal policy - definition, component, receipts, revenue and capital account, tax revenue, expenditure, budget.
• Social issues - financing health policy, education policy, sanitation, drinking water, social security, infrastructure policy, international trade issues, regional cooperation.
• Also, focus on issues currently in news related to the above topics - MNERGS, MSMEs, Make in India, industrial corridors, NITI Ayog, black money, international treaties and organisations, India’s policies with neighbours.
National income of a country means the sum total of incomes earned by the citizens of that country during a given period, over a year.
National income accounting refers to the set of methods and principles that are used by the government for measuring production and income, or in other words economic activity of a country in a given time period.
The various measures of determining national income are GDP (Gross Domestic Product), GNP (Gross National Product), and NNP (Net National Product) along with other measures such as personal income and disposable income.
It should be noted that national income is not the sum of all incomes earned by all citizens, but only those incomes which accrue due to participation in the production process.
Individuals participate in the production process by supplying factors of production which they possess.
According to Marshall: “The labour and capital of a country acting on its natural resources produce annually a certain net aggregate of commodities, material and immaterial including services of all kinds. This is the true net annual income or revenue of the country or national dividend.” In this definition, the word ‘net’ refers to deductions from the gross national income in respect of depreciation and wearing out of machines. And to this, must be added income from abroad.
National income accounting equation is an equation that shows the relationship between income and expense of an economy and other categories. It is represented by the following equation:
Y = C + I + G + (X - M)
Where
Y = National income
C = Personal consumption expenditure
I = Private investment
G = Government spending
X = Net exports
M = Imports

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