How to Prepare Economy for UPSC Civil Services Exam


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

         How to Prepare Economy for UPSC Civil Services Exam
                                                कैसे करें तैयारी ?

Economics preparation for UPSC can be divided into three parts -
तीन -स्तरीय 
(1) Understanding the concepts (संकल्पना निर्माण )
Terms like GDP, REPO, Reverse REPO, CRR, SLR, Inflation Indices, Growth, Inclusion, Development and so on.
(2) Understanding the application of the concepts ( संकल्पना की उपयोगिता )
– Application of the  fundamental concepts in day to day scenarios.
(3) Memorizing some basic facts(मुख्य तथ्यों को याद करना )
- For some factual MCQs and for logical conclusions
 
Prelims exam (प्रारम्भिक परीक्षा )

- Multiple choice question test
(वस्तुनिष्ट प्रश्न )
- evaluate certain qualities like a sharp memory and long- term retention power.
(तीव्र यादास्त एवं दीर्घकालीन स्मृति )
- Recognition and Recall  test - needs wide coverage 
विस्तृत अध्ययन की आवशकता 

What to do for PT?
(क्या करें )
-  Important facts and figures can be simplified and represented on charts and they can arranged in the form of tables or graphs
(चार्ट, टेबल एवं ग्राफ का उपयोग करें )
- to make short and brief notes on each topic so that the entire syllabus can be revised a few days before the exam
(संक्षिप्त नोट्स बनाये ताकि जल्दी दुहराया जा सके )
- use diagrams and link words which make it easier to understand difficult concepts
(चित्र को उपयोग करें )
i.e if inflation is double, one ten-rupee note = two ten rupee note.

- use of abbreviations. Since the syllabus involves exhaustive information abbreviations help you to remember it better
(शब्द -संक्षेप का उपयोग )
i.e Tools of RBI are -
Bank rate
SLR
CRR
Repo
= BSKR 

- to do regular revision. This helps in retaining the maximum information. A separate time slot should be given to doing not only regular but multiple revisions like daily, weekly, monthly etc. Repetition creates long term memory 
(सतत अभ्यास और दुहराना )
- Use of elimination process in choosing correct answer
(समाधान में उन्मूलन विधि, जहाँ सम्भव हो )

Main Exams

-  main exam consists of descriptive type of questions
(विवरणात्मक प्रश्न )
- testing the candidate on various levels (अनेक स्तरों पर जाँच की जाती है )
- The time limit for the is 3 hrs with a word limit like 250 words (समय और शब्दों की सीमा )

What needs to be done?
(
करना क्या है? )
- necessary to answer these questions quickly and effectively and in minimum words.
( प्रभावपूर्ण उत्तर )
- style of answering questions (उत्तर -शैली )
(i) there is no set rule (कोई तय नियम नहीँ )
(ii) If the question says to discuss, analyse or critically examine, it would be better to answer the question the paragraph format.
(चर्चा, विश्लेषण, समीक्षा, आलोचनात्मक समीक्षा हो तो अनुच्छेद में लिखना बेहतर )
(iii) if the question asks you to list the advantages or give reasons for/ against etc., it is better to go in for the point format of answering (पक्ष -विपक्ष, लाभ -हानि हो तो पॉयन्ट में )

- use simple language and avoid flowy and decorative langauage wich takes our attention away from the original facts and थे opinions about a given topic (सरल भाषा में लिखें आलंकारिक नहीँ, पर सामान्य तकनीकी शब्दावली का उपयोग करें )
- High quality language. GS is specialized study for general usage.
i.e. NITI Aayog
-  practice of writing out answers is especially useful in managing the time limit set for the exam and to write the best possible answer in the allotted time It not only improves one's style of expression, but also one gets used to the time and word limits.
(उत्तर -लेखन का अभ्यास अति-आवश्यक )
-  write an answer which has a clear and a logical frame, which presents information in a clear and concise manner
(उत्तर संक्षिप्त और स्पष्ट हो )
- does not contain any irrelevant information (अप्रासंगिक तथ्य न डालें )
- prepare the framework where one can list all ideas, thoughts and facts and write them down
(उत्तर लेखन का खाका तैयार करें )
- style should be is natural, original and to the point.(शैली प्राकृतिक और मौलिक हो )
- Care should be taken to avoid grammatical mistakes which will give a negative opinion 
व्याकरण सम्बन्धी गलतियां न करें 
-  have a good and a legible handwriting.
सुंदर लिखावट 
- Ability to apply the economic concept in current economic scenarios is also needed
(संकल्पना या सिद्ध्यंत को लागू करें )
 
Sources of Material
पाठ्य सामग्री 
--  Government websites are the best study material related to this Section of the Syllabus
सरकार की वेबसाइट 
--  Secondly the newspaper plays a very important part in preparing this section. ‘The Hindu’ is the best option. 
द हिंदू 
--   Budget Announcements and the provisions for the schemes must be marked by the candidates for the preparation of notes
बजट 
-- Economic Survey is another document which immensely help in ascertaining the results of the social schemes on the society as a whole because various reports are published in Economic Surveys reflecting the results of the ongoing schemes.
आर्थिक सर्वे 
--  India Year book is also very helpful but the candidates should make notes from it because otherwise it becomes very cumbersome
भारत ईयरबुक 
--  Magazines such as Yojana and Kurukshtra is one of the most important publications of the government related to the government schemes and their implementation
योजना और कुरुक्षेत्र 
Our Website-
www.iasmaker.com

Books
पुस्तकें 

- NCERT- Class XI and XII
- Pratiyogita Darpan (Special issue on Economy)
- Mishra and Puri
 
                                       
                                        Importance of Economy
                                   अर्थव्यवस्था का परीक्षा में महत्व 

 It is very important for a candidate preparing for Civil Services to study thoroughly about the Indian Economy. The significance of this topic from exam point of view emanates from the fact that 10-20 questions are asked every year directly from this section.
प्रारम्भिक परीक्षा - 10-20 प्रश्न 

- It helps the candidates understand the lacunae and the strengths of the Indian economic policies.
आर्थिक -सामजिक नीति की समझ आवश्यक 

- The study of Economy helps the candidates understand the planning process in the country which is absolutely essential for the development of a country.
देश की दशा और दिशा समझना आवश्यक 

- It helps the candidates understand the changes in polity
राजव्यवस्था में परिवर्तन को समझने में लाभकारी 

- Help in understanding international relation
अंतर्राष्टीय संधियों को समझना आसान 

- It is connected to many other topics of the syllabus- i.e social issues, use of technology, etc.
पाठ्यक्रम के अन्य टापिक से जुड़ा

- Economic aspects of history and geography are also asked in exam.
इतिहास और भूगोल के आर्थिक पक्ष से भी प्रश्न पूछे जाते हैं 


An Example of How to Stydy a Topic has been Given Below: - 
 
                                                              Financial Inclusion in India
                                                                 भारत में वित्तीय समावेशन 

(i) What is Financial Inclusion?
वित्तीय समावेशन क्या है ?
(ii) Who are excluded?
वित्तीय समावेशन से बाहर कौन हैं ?
(iii) Why they are excluded?
वे वित्तीय समावेशन से बाहर क्यों हैं ?
(iv) What is Status of financial inclusion?
वित्तीय समावेशन की स्थिति क्या है ?
(v) What are the measures taken for Financial Inclusion by RBI, Government, NBFCs, and Corporates?
वित्तीय समावेशन करने के लिये किये गये उपाय कौन -कौन से हैं ?
(vi) Advantages of Financial Inclusion

(1) What do we mean?

Term ‘financial inclusion’ was used for the first time in April 2005 by Y.V. Reddy,the then RBI governor.
It denotes delivery of financial services at an affordable cost to the vast sections of the disadvantaged and low-income groups.
वहनीय लागत पर वित्तीय सेवा उपलब्ध कराना 
The various financial services include credit, savings, insurance and payments and remittance facilities. 
खाता के अलावा ऋण, बचत, बीमा, भुगतान सुविधा उपलब्ध कराना 
F I ensures access to financial services and timely and adequate credit 
पर्याप्त और समय पर ऋण एवम अन्य सेवा 

(2) Who are the excluded ?
वित्तीय समावेशन से बाहर कौन हैं
?

Marginal farmers, 
सीमांत किसान 
landless laborers, 
भूमिहीन मजदूर 
self employed and 
unorganized sector enterprises, (असंगठित क्षेत्र, स्वरोजगारी )
urban slum dwellers, (मलिन बस्ती में रहनेवाले )
migrants (प्रवासी ), 
ethnic minorities and 
socially excluded groups, (धर्मिक अल्पसंख्यक )
senior citizens (वरिष्ट नागरिक ) and
women (महिलाएँ ) .

(3) Reasons for financial exclusion  कारण 

Remote, hilly and sparsely populated areas with poor infrastructure, (दूरस्थ क्षेत्र के निवासी )
From the demand side (माँग के तरफ से ), lack of awareness, low incomes/assets, social exclusion, illiteracy act as barriers. 
From the supply side (आपूर्ति के तरफ से )
distance from branch,
branch timings, 
cumbersome documentation and procedures, कागजात एवम प्रक्रियाएँ कठीन 
unsuitable products (अनुपयुक्त उत्पाद )
language, 
staff attitudes (मनोभाव )
On the other hand, the ease of availability of informal credit sources makes these popular even if costlier.
अनौपचारिक श्रोत आसान हैं 

(4) Status of financial inclusion

(A) International अंतर्राष्टीय स्तर 
Global Findex (2014) of World Bank
Two billion people -- or 38% adults in the world -- do not use formal financial services
(B) National राष्ट्रीय स्तर 
CRISIL, India's leading credit rating and research company launched an index CRISIL Inclusix index 
It is tool to measure the extent of inclusion in India, right down to each of the 632 districts. The all-India CRISIL Inclusix score of 40.1 is low in 2011
- Of the 24.67 crore households in India, 10.19 crore do not have access to banking services. 
- Extent of Exclusion – NSSO Survey 59th Round
- 51.4% of farmer households are financially excluded from both formal / informal sources.
- Of the total farmer households, only 27% access formal sources of credit;

(5) Measures
वित्तीय समावेशन करने के लिये किये गये उपाय कौन -कौन से हैं ?


(A) RBI Measures

- Opening of no-frills accounts
- Relaxation on know-your-customer (KYC) norms
- Engaging business correspondents (BCs)
- Use of technology
- Adoption of Electronic Benefit Transfer (EBT)
- Revised General Credit Card (GCC) intended to cover all entrepreneurial credit, e.g. Artisan Credit Card, Laghu Udyami Card, Swarojgar Credit Card, and Weaver’s Card etc
- Simplified branch authorization
- Opening of branches in unbanked rural centres
- A smart card (RuPay card)
- Tapping technology platforms- Mobile banking, Adhaar Enabled Payment Systems (AEPS)
- Payments Banks and Small Finance Banks

(B) Measures taken by Government

- Nationalization of banks,
- Co-operatives banks
- Regional rural banks,
- Introduction of mandated priority sector lending targets,
- lead bank scheme
- Formation of self-help groups,
- Post office bank
- KCC
- National Mission on Financial Inclusion/ CFIP or Sampoorn Vittiya Samaveshan
- Swabhimaan"- the Financial Inclusion Campaign
- Wages to MGNREGA workers through BC model

New Initiatives-

- Jan Dhan Yojana
- Pahal
- Convergence of UIDAI Aadhaar Number with Financial Inclusion
- Direct transfer of subsidy on LPG, Kerosene and Fertiliser etc. to the beneficiaries through their bank accounts
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Pradhan Mantri Suraksha Bima Yojana (PMSBY)
- Atal Pension Yojana (APY)
- Financial Inclusion Funds

(C) Corporate Sector Efforts –

- White ATMs
- - NBFCs

(6) Advantages of Financial Inclusion

- DBT
- Access to finance by the poor and vulnerable groups is a prerequisite for poverty reduction and social cohesion.
- This has to become an integral part to promote inclusive growth.
- Providing access to finance is a form of empowerment of the vulnerable groups.
- Financial inclusion enables good financial decision making through financial literacy and qualified advice as also access to financial services for all, particularly the vulnerable groups to enable them to-
a) manage their finances on day to day basis confidently, effectively and securely;
b) Plan for the future to protect themselves against short term variations in income and expenditure and for wealth creation and gaining from financial sector developments; and
c) deal with financial distress effectively thereby reducing their vulnerability to the unexpected.

- Financial Inclusion has the ability to generate positive externalities: it leads to increase in savings, investment and thereby, spurs the processes of economic growth.
- It also provides a platform for inculcating the habit of saving money, especially amongst the lower income category that has been living under the constant shadow of financial duress, mainly because of absence of savings, which makes them a vulnerable lot.
- Financial Inclusion has now been viewed as a remedy to plug gaps and leaks in distribution of government benefits and subsidies through direct benefit transfers to beneficiaries’ bank accounts rather than through subsidizing products and making cash payments.
On the whole, Financial Inclusion has the potential to bring in the unbanked masses into the formal banking system, channelize their savings, stoke their entrepreneurial ambitions by making available credit and thus give a fillip to the economy
 


Tuesday, 09th Feb 2016, 11:02:26 PM

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