The UPSC EPFO APFC Developmental Issues and Present Trends in Indian Economy syllabus 2026 covers basic economic concepts and key development issues in India. It includes demand and supply, economic growth, poverty, employment, inflation, fiscal and monetary policy, economic reforms, financial institutions, international organisations, regional cooperation, human development, industrial policy, and the Finance Commission.
What is the UPSC EPFO Present Trends in Indian Economy syllabus?
The Developmental Issues and Present Trends in Indian Economy section covers key concepts related to India’s economy and development. It includes demand and supply, economic growth, poverty, employment, planning, monetary policy, inflation, fiscal policy, and external sector issues.
- Demand and Supply
- Microeconomics and macroeconomics
- Demand and supply
- Market equilibrium
- Elasticity of Demand
- Price elasticity
- Income elasticity
- Cross elasticity
- Shifts in the demand curve
- Measurement of Growth
- Circular flow of income
- GDP and macroeconomic identities
- Economic welfare
- Market structures
- Poverty and Employment
- Types and measurement of poverty
- Sustainable Development Goals (SDGs)
- Types and measurement of employment
- Economic History of India
- Major economic sectors
- Economic planning
- Economic reforms
- NITI Aayog
- Monetary Policy
- Types and tools of monetary policy
- Financial institutions
- RBI, NABARD and SEBI
- Inflation
- Causes and effects
- Measures of inflation
- Inflation trends
- Inflation targeting
- Fiscal Policy
- Union Budget
- Fiscal and revenue deficits
- Public debt
- Goods and Services Tax (GST)
- Regional Economic Cooperation
- SAARC, ASEAN, BIMSTEC and BRICS
- SCO and IORA
- Free Trade Agreements (FTAs)
- Other regional economic groups
- International Economic Institutions
- World Bank
- International Monetary Fund (IMF)
- World Trade Organization (WTO)
- Opening of Indian Economy and BoP
- Balance of Payments (BoP)
- Exchange rates
- Currencies
- Exchange-rate management
- Development
- Concepts of economic development
- Human development
- Human Development Index (HDI)
- Industrial and Labour Policy
- Industrial policy
- Disinvestment
- MSMEs
- SEZs and NIMZs
- Manufacturing policy
- Finance Commission
- Composition and appointment
- Functions
- 14th Finance Commission
- 15th Finance Commission
What should you study under Introduction to Demand and Supply?
Demand and supply are the basic concepts of economics. Candidates should understand microeconomics, macroeconomics, demand, supply, market equilibrium, and the factors that affect them, along with basic curves and changes in equilibrium.
- Microeconomics: Study individual consumers, firms, markets, prices, and resource allocation.
- Macroeconomics: Study the economy as a whole, including growth, inflation, employment, and national income.
- Demand: Meaning, law of demand, demand schedule, and demand curve.
- Supply: Meaning, law of supply, supply schedule, and supply curve.
- Equilibrium: Interaction between demand and supply to determine equilibrium price and quantity.
- Market changes: Understand how changes in demand or supply affect equilibrium.
What topics are covered under Elasticity of Demand?
Elasticity of demand measures how changes in price, income, or related goods affect demand. Candidates should focus on price, income, and cross elasticity, including their practical use and the relationship between substitute and complementary goods.
| Type of Elasticity | What It Measures | Key Area to Study |
| Price Elasticity | Change in demand due to change in price | Elastic, inelastic and unitary demand |
| Income Elasticity | Change in demand due to change in income | Normal and inferior goods |
| Cross Elasticity | Change in demand for one good due to price change of another | Substitutes and complements |
Candidates should also understand demand curve shifts, including the difference between a movement along the demand curve and a shift of the entire curve.
What should you study under Measurement of Growth?
Economic growth is measured through GDP and national income indicators. Candidates should understand circular flow, macroeconomic identities, economic growth, development, welfare, and basic market structures to understand how economic activity is measured.
| Topic | Important Areas to Study |
| Circular Flow | Flow of income, expenditure and production |
| GDP | Meaning, measurement and importance |
| Macroeconomic Identities | Basic relationships between income, expenditure, savings and investment |
| Economic Growth | Increase in production and income over time |
| Economic Welfare | Relationship between growth and living standards |
| Market Structures | Perfect competition, monopoly, monopolistic competition and oligopoly |
What are the important topics under Poverty and Employment?
Poverty and employment are key development issues linked to living standards and economic inclusion. Candidates should focus on types and measurement of poverty, poverty reduction efforts, employment and unemployment, labour-force concepts, employment measurement, and the Sustainable Development Goals (SDGs).
| Topic | Important Areas to Study |
| Poverty | • Meaning and types of poverty • Absolute and relative poverty • Measurement of poverty • Poverty line and poverty estimates • Causes of poverty • Poverty alleviation programmes • Poverty and resource distribution • SDG related to poverty • Tribal rights and livelihood issues • Livelihood missions |
| Employment | • Meaning and types of employment • Formal and informal employment • Self-employment and wage employment • Unemployment and its types • Measurement of employment and unemployment • Labour-force participation • Employment trends in India |
What should you study under Economic History of India?
The Economic History of India helps candidates understand major changes in the Indian economy over time. Focus on agriculture, industry, services, economic planning, the 1991 economic reforms, and the shift from the Planning Commission to NITI Aayog.
| Topic | Important Areas to Study |
| Indian Economy | Major features and sectors of the economy |
| Economic Sectors | Agriculture, industry and services |
| Planning | Economic planning before and after Independence |
| Five-Year Plans | Broad objectives and major themes |
| Economic Reforms | Liberalisation, Privatisation and Globalisation |
| 1991 Reforms | Major changes and their impact |
| NITI Aayog | Formation, objectives, role and functions |
What is included in Monetary Policy?
Monetary policy deals with the management of money, credit, liquidity, and interest rates in the economy. The Reserve Bank of India (RBI) plays the central role in India’s monetary policy.
| Topic | What to Study |
| Monetary Policy | Meaning, objectives and importance |
| Expansionary Policy | Measures used to support economic activity |
| Contractionary Policy | Measures used to control excess demand and inflation |
| RBI | Role and functions in monetary policy |
| Policy Instruments | Repo rate, reverse repo, CRR, SLR, OMO and related tools |
| NABARD | Role in agriculture and rural development finance |
| SEBI | Role in regulating the securities market |
| Financial Institutions | Major institutions and their economic functions |
What are the important topics under Inflation?
Inflation refers to a sustained rise in the general price level of goods and services. Candidates should understand its causes, effects, different forms, and the methods used to measure it. The role of monetary and fiscal policy in controlling inflation is also important. Focus on CPI, WPI, inflation targeting, price stability, and recent inflation trends.
| Area | Important Topics |
| Meaning | General rise in the price level |
| Causes | Demand-pull, cost-push and other causes |
| Types | Different forms and levels of inflation |
| Effects | Impact on consumers, producers, savings and investment |
| Measurement | CPI, WPI and other price indicators |
| Control Measures | Monetary and fiscal measures |
| Inflation Targeting | Role of RBI and the inflation-targeting framework |
| Trends | Recent inflation developments in India |
What should you study under Fiscal Policy?
Fiscal policy refers to the use of government taxation, spending, and borrowing to influence economic activity. Candidates should understand the Union Budget and different types of government receipts and expenditure. Budget deficits, public debt, taxation, and Goods and Services Tax (GST) are important parts of this topic.
| Topic | Important Areas to Study |
| Fiscal Policy | Meaning, objectives and importance |
| Government Budget | Receipts, expenditure and budget components |
| Revenue Receipts | Tax and non-tax revenue |
| Capital Receipts | Borrowings and other capital receipts |
| Fiscal Deficit | Meaning, causes and impact |
| Revenue Deficit | Meaning and significance |
| Primary Deficit | Meaning and calculation |
| Public Debt | Internal and external debt |
| GST | Basic structure, features and role in taxation |
What is included in Regional Economic Cooperation?
Regional Economic Cooperation covers how countries work together on trade, investment, connectivity, and economic development. Candidates should focus on the objectives and key areas of major regional organisations, along with India’s participation and trade agreements.
| Organisation/Agreement | Key Area to Study |
| SAARC | South Asian regional cooperation |
| ASEAN | Southeast Asian economic cooperation |
| BIMSTEC | Bay of Bengal regional cooperation |
| BCIM | Bangladesh-China-India-Myanmar cooperation |
| RCEP | Regional trade and economic cooperation |
| CPTPP | Trans-Pacific trade partnership |
| OBOR/BRI | Connectivity and infrastructure initiative |
| SCO | Regional political and economic cooperation |
| IORA | Indian Ocean regional cooperation |
| IOC | Indian Ocean cooperation |
| APEC | Asia-Pacific economic cooperation |
| BRICS | Emerging economies and economic cooperation |
| India’s FTAs | Major free trade agreements and trade relations |
Candidates should also understand India’s trade relations with neighbouring countries and important recent developments related to regional economic cooperation.
What are the major International Economic Institutions?
International economic institutions influence global trade, development finance, economic stability, and international economic relations. Candidates should know their objectives, major functions, and role in the global economy. Basic differences between the World Bank, IMF, and WTO should be clear.
| Institution | Main Role |
| World Bank | Development finance and poverty reduction |
| IMF | International monetary cooperation and financial stability |
| WTO | Global trade rules and trade-related cooperation |
What should you study under Opening of Indian Economy and Balance of Payments?
The opening of the Indian economy refers to the gradual integration of India with the global economy, especially after the economic reforms of 1991. Candidates should understand the Balance of Payments (BoP) and the role of exchange rates in international trade. The syllabus also covers different types of currencies and exchange-rate management.
| Topic | Important Areas to Study |
| Opening of Economy | Economic reforms and global integration |
| Balance of Payments | Current account, capital account and overall balance |
| Exchange Rate | Meaning and determination |
| Currency | Convertible and non-convertible currencies |
| Exchange Rate Systems | Fixed, flexible and managed exchange rates |
| Exchange Rate Management | Role of RBI and foreign exchange management |
What are the important topics under Development?
Development is broader than economic growth and includes health, education, living standards, equality, and human well-being. Candidates should focus on the concept, pillars, and process of development, along with HDI and other development indicators used for comparisons across countries and regions.
| Topic | What to Study |
| Development | Meaning and concept |
| Economic Growth | Increase in output and income |
| Human Development | Health, education and standard of living |
| Sustainable Development | Development while protecting future resources |
| Development Indicators | HDI and other important indices |
| HDI | Health, education and income dimensions |
What should you study under Industrial and Labour Policy?
Industrial and labour policies cover government efforts related to industrial growth, investment, employment, and manufacturing. Candidates should focus on the evolution of industrial policy, MSMEs, disinvestment, SEZs, NIMZs, manufacturing corridors, and labour policy.
| Topic | Important Areas to Study |
| Industrial Policy | Evolution of industrial policy in India |
| Disinvestment | Meaning, objectives and major approaches |
| MSMEs | Role, classification and contribution |
| SEZs | Meaning, objectives and benefits |
| NIMZs | National Investment and Manufacturing Zones |
| Manufacturing Policy | National Manufacturing Policy |
| Industrial Corridors | Major corridors and their objectives |
| Labour Policy | Major policies and their economic role |
What is the role of the Finance Commission?
The Finance Commission is a constitutional body that recommends the distribution of financial resources between the Union and States. Candidates should focus on its appointment, composition, functions, and role in fiscal federalism, with special attention to the 14th and 15th Finance Commissions and their comparison.
| Topic | Important Areas to Study |
| Appointment | Constitutional basis and appointment |
| Composition | Chairman and members |
| Tax Devolution | Distribution of tax revenue between Centre and States |
| Grants-in-Aid | Recommendations regarding grants |
| Fiscal Federalism | Financial relationship between Union and States |
| 14th Finance Commission | Major recommendations and features |
| 15th Finance Commission | Major recommendations and features |
How should you prepare for Developmental Issues and Present Trends in Indian Economy?
Candidates should prepare this section with basic economic concepts and current affairs. Start with topics such as GDP, inflation, fiscal policy, monetary policy, and BoP, then connect them with recent government policies, reports, economic data, and developments, supported by regular revision and practice questions.
- Complete basic concepts of demand, supply, growth, GDP, inflation, and fiscal policy first.
- Understand the role and functions of RBI, NABARD, SEBI, NITI Aayog, and Finance Commission.
- Revise poverty, employment, inclusion, human development, and demographic trends.
- Study the Union Budget, GST, public debt, and different types of deficits.
- Cover India’s economic reforms, planning history, and the role of NITI Aayog.
- Revise major regional and international economic organisations.
- Connect static topics with current economic developments and government initiatives.
- Practise previous-year and topic-wise questions regularly.
- Make short notes for economic terms, institutions, reports, indices, and important policies.
- Revise current economic developments before the Recruitment Test.
What is the UPSC EPFO APFC exam date 2026?
The UPSC EPFO APFC Recruitment Test 2026 is scheduled for 20th December 2026. The Recruitment Test is an objective, pen-and-paper examination carrying 300 marks and has a duration of 2 hours. The selection process also includes an interview, with the notified final weightage of 75% for the Recruitment Test and 25% for the interview.
FAQs
It covers economic growth, poverty, employment, monetary policy, fiscal policy, development, industrial policy, and international economic issues.
Yes, candidates should study monetary policy, its instruments, and major financial institutions.
Yes, inflation, its causes, effects, measurement, trends, and inflation targeting are included.
Yes, candidates should study poverty, its measurement, employment types, and employment status.
Focus on RBI, NABARD, SEBI, and their major functions.
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