This module covers the economy portion of the CAPF Paper I clause "Indian Polity and Economy", specifically "economic development in India". Notes are calibrated to the CAPF level: clean static facts, correct definitions, the right institution and number, plus the security and governance angle where the topic touches state capacity, the defence budget, border-area development, or financial inclusion.
For the official clause mapping see syllabus index. For the approved booklist and source policy see sources index.
- basics national income and growth, GDP, GNP, NNP, nominal versus real, the three sectors and their shares, base year, and growth measurement.
- money and banking and the rbi, money supply (M0 to M3), Reserve Bank functions, monetary policy, repo, reverse repo, CRR and SLR, and the types of banks.
- banking and financial sector reforms, the 1991 reforms, the Narasimham Committees, Basel and prudential norms, NPAs and the twin balance-sheet problem, the IBC 2016, and financial inclusion.
- capital markets and sebi, primary versus secondary markets, IPOs, the BSE and NSE, the Sensex and Nifty, mutual funds and depositories, SEBI, and FII or FPI flows.
- inflation and prices, CPI and WPI, types and causes of inflation, control measures, and deflation versus stagflation.
- budget and fiscal policy, the Union Budget structure, the deficits, the FRBM Act, and fiscal versus revenue deficit.
- taxation and gst, direct versus indirect taxes, the GST structure and Council, and core tax terms.
- planning and niti aayog, the Five-Year Plans in brief, the move from the Planning Commission to NITI Aayog in 2015, and key bodies.
- poverty unemployment and inclusive growth, poverty estimation, types of unemployment, and the HDI and MPI indicators.
- agriculture and rural economy, the Green Revolution, MSP, food security, major crops, and rural credit.
- industry infrastructure and energy, industrial policy, MSME, key sectors, the energy mix, and infrastructure schemes.
- external sector trade and bop, the balance of payments, forex reserves, the exchange rate, trade, and FDI and FII.
- international economic institutions, the Bretton Woods system, the IMF and World Bank, the WTO and GATT, the new banks (ADB, AIIB, NDB), the FATF and BIS, and the groupings (G20, BRICS, SCO).
- key economic indicators and reports, GDP and growth, CPI and WPI, the deficits, the HDI, MPI and Gini, the data bodies (MoSPI, NSO, RBI), and the flagship reports (Budget, Economic Survey, World Economic Outlook).
- major economic schemes, the flagship welfare and inclusion schemes as a quick-reference table.
Paper I economy questions are objective and reward recognition of the correct definition, institution, year, or number. The common formats are:
- Statement-type ("Which of the following statements about the repo rate is correct").
- Matching (scheme to launch year, or institution to function).
- Single-fact recall (base year of GDP series, full form of FRBM, who chairs the GST Council).
Current affairs is tested through the latest Union Budget and Economic Survey figures, so re-verify currency-sensitive numbers against the most recent Budget and Survey before the exam.
- Index (the Polity half of the same syllabus clause), once created.
- topic frequency for what to prioritise.
- Index for the latest Budget and Survey briefs, once created.