CDS Economics · Free notes
Indian Economy: CDS Economics
Indian Economy has 34 past-year questions in CDS General Knowledge, from 2016 (II) to 2026 (II), and 9 of them are HARD. Half of them, 17 of the 34, come from the papers of 2024 to 2026, so the chapter is growing. More than half the questions are about India's dealings with the world: what goes in which account, what a weaker rupee does, which trade deal India joined or left. The rest name a plan or a scheme and ask its aim or its year. Schemes are renewed and replaced, so each one here carries the year it holds for.
The handout has every subtopic, worked example, formula and trap with answers shown. The formula sheet is the chapter’s formulas and traps alone, on one page.
Subtopic notes
Planning and Farm Policy
15 PYQsThe Five Year Plans and their themes, NITI Aayog, the minimum support price and the public distribution system, and the farm, livestock and fisheries schemes.
Balance of Payments and Foreign Capital
8 PYQsThe current and capital accounts and what goes in each, why India runs a current account deficit, direct against portfolio investment, the foreign exchange reserves, and the IMF and WTO dates CDS asks.
Exchange Rates and Trade Policy
11 PYQsFixed and floating exchange rates, what a weaker rupee does to exports, imports and prices, and India's trade agreements and export schemes.
Formula & revision sheet
2 formulas · 8 reference tables · 13 gotchas across all subtopics — the exam-eve cheat-sheet
Formula & revision sheet
2 formulas · 8 reference tables · 13 gotchas across all subtopics — the exam-eve cheat-sheet
Reference tables (4)
The Five Year Plans and NITI Aayog11 rows
| Plan | Years | Theme |
|---|---|---|
| First | 1951 to 1956 | Agriculture (Harrod-Domar model) |
| Second | 1956 to 1961 | Heavy industry (Mahalanobis model) |
| Third | 1961 to 1966 | A self-reliant, self-generating economy |
| Plan holiday | 1966 to 1969 | Three annual plansQ CDS 2017 (II): Mahalanobis model, then plan holiday, then rolling plan. |
| Fourth | 1969 to 1974 | Growth with stability and self-reliance |
| Fifth | 1974 to 1979 | Removal of poverty and self-reliance |
| Rolling plan | 1978 to 1980 | Janata government |
| Seventh | 1985 to 1990 | Food, work and productivity |
| Ninth | 1997 to 2002 | Growth with social justice and equality |
| Eleventh | 2007 to 2012 | Faster and more inclusive growth |
| Twelfth (the last) | 2012 to 2017 | Faster, more inclusive and sustainable growthQ |
Minimum support price and the food system4 rows
| Item | Who or what | Key fact |
|---|---|---|
| MSP | CACP recommends | Cost of production, price trends, inter-crop parity; not a cost of living indexQ |
| Procurement and storage | Food Corporation of India | Moves grain to the States |
| Identifying beneficiaries | State governments | Not a joint task with the Centre |
| Food Security Act | 2013 | About 67 per cent of the population; all States and UTs since 2016 |
Farm schemes6 rows
| Scheme | Year | Aim |
|---|---|---|
| PMKSY | 2015 | Irrigation and water use efficiencyQ CDS 2018 (I): protecting farmers against crop failure is not a PMKSY aim. |
| PKVY | 2015-16 | Organic farming |
| PMFBY | 2016 | Crop insurance; continued, not discontinuedQ Asked twice: CDS 2025 (II) and 2026 (I). The ₹2 lakh death cover belongs to a different scheme. |
| Oil palm mission | 2021 | Edible oil; North-East and Andaman and NicobarQ |
| Ethanol blending | 10 per cent reached in 2022 | Helps the sugar industryQ |
| PM SVANidhi | 2020 | Loans to urban street vendors; not for farmingQ |
Livestock and fisheries4 rows
| Scheme or initiative | What it does |
|---|---|
| National Livestock Mission | Output, entrepreneurship and insurance in livestock |
| Fisheries Startup Grand Challenge | Finds startups with solutions for productivity, sustainability and market accessQ |
| Matsya Manthan | Lecture series to build innovation in fisheries |
| Pradhan Mantri Matsya Sampada Yojana | Fisheries production and infrastructure, from 2020 |
Watch out for (6)
- NITI Aayog advises, it does not fund→ The Five Year Plans and NITI Aayog
- Plan holiday before rolling plan→ The Five Year Plans and NITI Aayog
- CACP recommends, it does not decide→ Minimum support price and the food system
- Insurance is PMFBY, not PMKSY→ Farm schemes
- Accident cover is not crop insurance→ Farm schemes
- Livestock schemes now include insurance→ Livestock and fisheries
Reference tables (2)
The IMF, the WTO and the dates5 rows
| Event | Year |
|---|---|
| GATT signed | 1947 |
| Nasdaq opens | 1971 |
| SWIFT founded | 1973 (live in 1977)Q CDS 2018 (I): SWIFT dated to 1985 was the wrong pair. |
| Uruguay Round concluded | 1994 |
| WTO begins | 1995 |
Watch out for (3)
- Invisibles are current account→ The current account and the capital account
- Buying listed shares is portfolio, not direct→ FDI, portfolio money and the reserves
- SWIFT is older than it looks→ The IMF, the WTO and the dates
Reference tables (2)
Exchange rate systems4 rows
| System | Rate set by | Period |
|---|---|---|
| Gold standard | Fixed in terms of gold | Up to 1914 |
| Bretton Woods | Pegged to the dollar, the dollar to gold | 1944 to the early 1970s |
| Floating | The market alone | Major currencies since 1973 |
| Managed float | The market, with central bank smoothing | India since 1993 |
Trade agreements and export schemes5 rows
| Item | Key fact |
|---|---|
| What FTA export gains depend on | Tariff cut, rules of origin, SPS rules, home infrastructure, partner incomeQ |
| RCEP | ASEAN plus five partners; India withdrew in 2019 |
| Trade surplus partner | USA, India's largest export marketQ |
| Niryat Bandhu | Mentoring first-generation exportersQ |
| Districts as Export Hubs | Every district, not a chosen few; 2019Q CDS 2025 (II): limiting DEH to selected districts was the wrong statement. |
Watch out for (4)
- Floating means no intervention→ Exchange rate systems
- A falling rupee makes imports dearer→ What a weaker rupee does
- Every district, not a few→ Trade agreements and export schemes
- Surplus with the USA, deficit with China→ Trade agreements and export schemes
PYQ weightage by concept
10 concepts · 34 PYQs — where the marks actually sit, so you know what to drill first
PYQ weightage by concept
10 concepts · 34 PYQs — where the marks actually sit, so you know what to drill first
| Concept | PYQs | Share |
|---|---|---|
| Farm schemes | 7 | 21% |
| The Five Year Plans and NITI Aayog | 3 | 9% |
| Minimum support price and the food system | 3 | 9% |
| Livestock and fisheries | 2 | 6% |
| Concept | PYQs | Share |
|---|---|---|
| The current account and the capital account | 3 | 9% |
| FDI, portfolio money and the reserves | 3 | 9% |
| The IMF, the WTO and the dates | 2 | 6% |
| Concept | PYQs | Share |
|---|---|---|
| Trade agreements and export schemes | 6 | 18% |
| What a weaker rupee does | 4 | 12% |
| Exchange rate systems | 1 | 3% |
Test yourself on Indian Economy
15 past CDS questions from this chapter, timed at 15 minutes and marked the way the exam marks it. You see your score and every answer the moment you finish. Free to start.