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IAS preparation: Digest “Indian Economic Survey” book properly

If you want to understand Indian economy and also relevant economic terms then read “Indian economic survey” book with great attention.`

While reading underline the words which you do not understand and use online search or any other means to find its meaning. Don’t try to go too much deeper into the meaning but to the level that is required. For example, you would come across the following terms by reading the first chapter of Economic survey 2012-13.`

Economic slowdown Macro aggregate
Financial crises Fiscal and monetary stimulus
Inflation RBI policy rates
Monetary policy CAGR for GDP
CAD GDP at factor cost
WPI Aggregate demand
Food inflation IIP
CPI GDP at current market prices
Tax and non-tax revenues Inflationary expectation
Fiscal target Fixed capital
Fiscal consolidation IMF
Balance of payment Fiscal stimulus

For complete listing of words commonly used in economic survey refer

Economic survey is boring because of lots and lots of statistics it presents. You need not remember all of these but some important ones like GDP, HDI etc.

Economic survey gives answers to some of the major problems that the country is facing for example, in chapter 1, paragraph 1.5 of economic survey 2012-13.

Why has the economy slowed down so rapidly despite recovering strongly from the global financial crisis

A number of factors are responsible.

1)The boost to demand given by monetary and fiscal stimulus following the crisis was large. Final consumption grew at an average of over 8 per cent annually between 2009-10 and 2011-12. The result was strong inflation and a powerful monetary response that also slowed consumption demand.
2)Starting in 2011-12, corporate and infrastructure investment started slowing both as a result of investment bottlenecks as well as the tighter monetary policy.
3)Even as the economy slowed, it was hit by two additional shocks: a slowing global economy, weighed down by the crisis in the Euro area and uncertainties about fiscal policy in the United States, and a weak monsoon, at least in its initial phase.

So while reading keep an eye on such information.

Pay importance to information presented in highlighted BOXES.

Pay a little more importance to schemes that are introduced recently and  if possible dig out more information about those schemes. In the last two year question papers, you can see that newly introduced scheme have been asked. So instead of reading each and every scheme, give some special importance to newly introduced schemes ( considering the time constraints. )

Pay special importance to

  • First chapter which gives an overview of the economy
  • Chapter on climate change
  • Human development. ( Which include socioeconomic schemes/programs by the government )

Don’t rely on notes which sums up entire economic survey in about 2 to 3 pages. It is better to make your own notes. This will be a great competitive advantage for you in IAS main’s, as well as interviews. You will get great insight about the current state of Indian economy and some important macro and micro economic terms which no other books can provide.

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