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Economics optional Books and Syllabus for UPSC Exam

The Civil Services Examination (CSE), also known as UPSC exam, is an examination process in India that is supervised by the Union Public Service Commission to recruit Civil Services of the Government of India. Economics Optional Books For IAS This exam consists of three parts.

  1. An initial test consists of two objective papers; General Science I and II. This objective paper is also known as Civil Service Aptitude Test (CSAT).
  1. The core examination includes a conventional essay. A personality test or interview is also conducted.


In the UPSC exam, economics can be considered as a popular optional subject. Aspirants with a good commerce and economics can face this exam easily to earn a good score.

Booklist for Economics Optional IAS Exam

There are certain books to refer for economics optional to get the desired result. Some of them are:

  • ● Indian Economy – Ramesh Singh
  • ● Indian Economy – Mishra and Puri
  • ● Indian Economy by R. Dutt and KPM sundaram
  • ● Dictionary of Economics – Graham Bannock; T.E. Baxter, Ray Rees
  • ● Public Finance – K.K. Andley and Sundaram
  • ● Money Supply in India: Concepts, Compilation and Analysis: Functions and Working – Reserve Bank of India
  • ● Monetary Theory and Public Policy – Kenneth Kurihara
  • ● MacroEconomic Analysis – Edward Shapiro
  • ● Economic Survey: Twelve Five Year Plan: New Industrial Policy – Government of India
  • ● Economics – Paul A. Samuelson
  • ● Economic Growth and Development – Mayer and Baldwin
  • ● International Economics – H.G. Mannur or Salvatore
  • ● Banking – S.B. Singh
  • ● Economics Choice – Koutsweanik


1. Advanced Microeconomics

This topic part of the syllabus includes Marshallian and Walrasiam Approaches to Price determination, Alternative Distribution Theories of Ricardo, Kaldor and Kaleeki, Modern Welfare Criteria: Pareto Hicks & Scitovsky, Arrow’s Impossibility Theorem and A.K. Sen’s Social Welfare Function.

2. Advanced Macroeconomics

Approaches to Employment Income and Interest Rate determination: Classical, Keynes (IS-LM) curve, Neo classical synthesis and New classical, Theories of Interest Rate determination and Interest Rate Structure are discussed under this.

3. Money – Banking and Finance

Under this part there are mainly two topics to consider . One is Demand for and Supply of Money and the other is Public Finance and its Role in Market Economy.

4. International Economics

Here Old and New Theories of International Trade including Comparative Advantage, Terms of Trade and Offer Curve, Product Cycle and Strategic Trade Theories, Trade as an engine of growth and theories of under development in an open economy and Forms of Protection: Tariff and quota and Balance of Payments Adjustment alternative approaches like Price versus income, income adjustments under fixed exchange rates, Theories of Policy Mix Exchange rate adjustments under capital mobility, Floating Rates and their Implications for Developing Countries: Currency Boards, Trade Policy and Developing Countries, BOP, adjustments and Policy Coordination in open economy macro-model, Speculative attacks, Trade Blocks and Monetary Unions, WTO: TRIMS, TRIPS, Domestic Measures, Different Rounds of WTO talks are described.

5. Growth and Development

Theories of growth like Harrod’s model, Lewis model of development with surplus labor, Balanced and Unbalanced growth, Human Capital and Economic Growth, Research and Development and Economic Growth, Process of Economic Development of Less developed countries: Myrdal and Kuzments on economic development and structural change: Role of Agriculture in Economic, Development of less developed countries, Economic development and International Trade and Investment, Role of Multinationals, Planning and Economic Development: changing role of Markets and Planning, PrivatePublic Partnership, Welfare indicators and measures of growth – Human Development Indices, Development and Environmental Sustainability – Renewable and Non Renewable Resources, Environmental Degradation, Intergenerational equity development have fallen under this part.


1. Indian Economy in Pre Independence Era

Under this part Land System and its changes, Commercialization of agriculture, Drain theory, Laissez faire theory and critique, Manufacture and Transport: Jute, Cotton, Railways, Money and Credit are discussed.

2. Indian Economy after Independence Era

There are two eras after independence. Under the topic of the Pre Liberation Era contribution of Vakil, Gadgil and V.K.R.V. Rao, Agriculture: Land Reforms and land tenure system, Green Revolution and capital formation in agriculture, Industry Trends in composition and growth, Role of public and private sector, Small scale and cottage industries, National and Per capita income: patterns, trends, aggregate and Sectoral composition and changes therein, Broad factors determining National Income and distribution, Measures of poverty, Trends in poverty and inequality are discussed. The Post Liberation Era topics have the content of New Economic Reform and Agriculture: Agriculture and WTO, Food processing, Subsidies, Agricultural prices and public distribution system, Impact of public expenditure on agricultural growth, New Economic Policy and Industry: Strategy of industrialization, Privatization, Disinvestments, Role of foreign direct investment and multinationals, New Economic Policy and Trade: Intellectual property rights: Implications of TRIPS, TRIMS, GATS and new EXIM policy, New Exchange Rate Regime: Partial and full convertibility, Capital account convertibility, New Economic Policy and Public Finance: Fiscal Responsibility Act, Twelfth Finance Commission and Fiscal Federalism and Fiscal Consolidation, New Economic Policy and Monetary system, Role of RBI under the new regime, Planning: From central Planning to indicative planning, Relation between planning and markets for growth and decentralized planning: 73rd and 74th Constitutional amendments, New Economic Policy and Employment: Employment and poverty, Rural wages, Employment Generation, Poverty alleviation schemes, New Rural Employment Guarantee Scheme.

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