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Economics Optional


Indian Administrative  Service
Economics Optional

Civil Services are jobs directly related to public service and are widely considered prestigious in India. IAS stands for Indian Administrative Service. An officer selected into the Indian Administrative Service gets exposure in very diverse roles like the collector, commissioner, head of public sector units, chief secretary, cabinet secretary etc. Not only the experience and challenges but also the scope of making positive changes in the life of millions in India makes IAS a unique career choice.

The UPSC optional subjects list consists of 48 subjects including Economics. The Economics syllabus for UPSC IAS Exam focuses on the candidates’ understanding of the basic concepts and application of knowledge to developmental challenges and infrastructure planning for sustainable development.

Indian Administrative  Service

Economics Optional

Economics Optional Subject has 2 papers (paper I and Paper II) in UPSC Mains. Each paper is of 250 marks with a total of 500 marks. 

Indian Administrative  Service

Economics Optional

Minimum Educational Qualifications

  • A candidate must hold a degree of any of the Universities incorporated by an Act of the central or State Legislature in India or other educational institutions established by an Act of Parliament or declared to be deemed as a University under Section 3 of the University Grants Commission Act, 1956 or possess an equivalent qualification.


  1. For the Indian Administrative Service Course, the Indian Foreign Service and the Indian Police Service, a candidate must be a citizen of India.

  2. For other services, a candidate must be either:—
    (a) a citizen of India, or
    (b) a subject of Nepal, or

    (c) a subject of Bhutan, or
    (d) a Tibetan refugee who came over to India before 1st January, 1962 with the intention of permanently settling in India, or
    (e) a person of Indian origin who has migrated from Pakistan, Burma, Sri Lanka, East African countries of Kenya, Uganda, the United Republic of Tanzania, Zambia, Malawi, Zaire, Ethiopia and Vietnam with the intention of permanently settling in India.

    Provided that a candidate belonging to categories (b), (c), (d) and (e) shall be a person in whose favour a certificate of eligibility has been issued by the Government of India.

    A candidate in whose case a certificate of eligibility is necessary, may be admitted to the examination but the offer of appointment may be given only after the necessary eligibility certificate has been issued to him/her by the Government of India.

Age Limits

A candidate must have attained the age of 21 years and must not have attained the age of 32 years on the 1st of August, 2021 i.e., the candidate must have been born not earlier than 2nd August, 1989 and not later than 1st August, 2000.

The upper age-limit prescribed above will be relaxable as follows:-

  • up to a maximum of five years if a candidate belongs to a Scheduled Caste or a Scheduled Tribe;

  • up to a maximum of three years in the case of candidates belonging to Other Backward Classes who are eligible to avail of reservation applicable to such candidates; up to a maximum of three years in the case of Defence Services Personnel, disabled in operations during hostilities with any foreign country or in a disturbed area and released as a consequence thereof;

  • up to a maximum of five years in the case of ex-servicemen including Commissioned Officers and Emergency Commissioned Officers (ECOs)/ Short Service Commissioned Officers (SSCOs) who have rendered at least five years Military Service as on 1st August, 2021 and have been released: (i) on completion of assignment (including those whose assignment is due to be completed within one year from 1st August, 2021, otherwise than by way of dismissal or discharge on account of misconduct or inefficiency); or (ii) on account of physical disability attributable to Military Service; or (iii) on invalidment.

  • up to a maximum of five years in the case of ECOs/SSCOs who have completed an initial period of assignment of five years of Military Service as on 1st August, 2021 and whose assignment has been extended beyond five years and in whose case the Ministry of Defence issues a certificate that they can apply for civil employment and that they will be released on three months notice on selection from the date of receipt of offer of appointment.

  • up to a maximum of 10 years in the case of candidates belonging to Persons with Benchmark Disabilities (PwBD) categories viz. (i) blindness and low vision; (ii) deaf and hard of hearing; (iii) locomotor disability including cerebral palsy, leprosy cured, dwarfism, acid attack victims and muscular dystrophy; (iv) autism, intellectual disability, specific learning disability and mental illness; (v) multiple disabilities from amongst person under clauses (i) to (iv) including deaf-blindness

ArthaPoint ISS
Indian Administrative  Service
Economics Optional

1.Live & recorded lectures
2.Complete syllabus with all topics covered
3. Complete study materials provided
4. Every basic economics concept covered
5. Unlimited doubt resolution
6. Past years questions solutions
7. Mock tests series
8. Access to videos for one complete year or date of exam, whichever is earlier.


Demo Lecture
Indian Administrative  Service

Economics Optional

Indian Administrative  Service

Economics Optional

PAPER - 1 

1. Advanced Micro Economics
Marshallian and Varrasiam Approach to Price determination.
Alternative Distribution Theories; Ricardo, Kaldor, Kaleeki.
Markets Structure: Monopolistic Competition, Duopoly, Oligopoly.
Modern Welfare Criteria: Pareto Hicks and Scitovsky, Arrow’s Impossibility Theorem, A. K. Sen’s Social Welfare Function.

2. Advanced Macro Economics

Approaches to Employment Income and Interest Rate determination:


Keynes (IS)-LM) curve,

Neo-classical synthesis and New classical,

Theories of Interest Rate determination and Interest Rate Structure.

3. Money-Banking and Finance 
Demand for and Supply of Money :

Money Multiplier Quantity Theory of Money (Fisher, Pique, and Friedman)

Keyne’s Theory on Demand for Money,

Goals and Instruments of Monetary Management in Closed and Open Economies.

The relation between the Central Bank and the Treasury.

Proposal for ceiling on the growth rate of money.

Public Finance and its Role in Market Economy:

In stabilization of supply, allocation of resources and in distribution and development.

Sources of Government revenue, forms of Taxes and Subsidies, their incidence and effects. Limits to taxation, loans, crowding-out effects, and limits to borrowings.

Public expenditure and its effects.

4. International Economics
Old and New theories of International Trade:

Comparative advantage,

Terms of Trade and Offer Curve.

Product Cycle and Strategic Trade Theories.

Trade as an engine of growth and theories of underdevelopment in an open economy.

Forms of Protection:

Tariff and quota.

Balance of Payments Adjustment: Alternative Approaches: 

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.

5. Growth and Development
Theories of growth:

Harrod’s model;

Lewis model of development with surplus labour.

Balanced Unbalanced Growth.

Human Capitals 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,

Private-Public Partnership

Welfare indicators and measures of growth:

Human Development Indices.

The basic needs approach.

Development and Environmental Sustainability:

Renewable and Non-renewable Resources,

Environmental Degradation,

Intergenerational equity development.



1. The Pre Liberalization 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.

2. The Post-Liberalization Era 
New Economic Reform and Agriculture 

Agriculture and WTO, 

Food processing, 


Agricultural prices and public distribution system, 

Impact of public expenditure on agricultural growth.

New Economic Policy and Industry:

The strategy of industrialization, 



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, 

the Twelfth Finance Commission and 

Fiscal Federalism and 

Fiscal Consolidation.

New Economic Policy and Monetary System:

Role of RBI under the new regime.


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.


Indian Administrative  Service

Economics Optional

Our faculty is a highly qualified former Delhi University Professor who completed Master's in Economics from Delhi School of Economics. She has taught Economics Honours at Delhi University and has been a guest lecturer at many reputed MBA institutes.

For teaching, we have gone through several books and journals both national and international, and gathered all the information so that it can presented and accessible to the student. The entire study material is prepared from very basic level so that every student can understand every topic from the syllabus. Besides the theory being extensively discussed, an enormous collection of problems has been added so that the student can learn to apply the concepts over a diverse spectrum of difficulty. All the problems have been worked out thoroughly so that in case the student gets stuck, we've got you covered! 

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