Top 50 Economic Terms Every UPSC Aspirant Should Know in 2025

If you’re preparing for UPSC, IAS, IPS, SSC, or IBPS exams, mastering Indian Economy terms is critical. The economy section forms a major part of Prelims, Mains (GS3), and interviews, and knowing these terms can give you an edge over thousands of aspirants.

In this article, we’ve curated the top 50 most important economy terms from current affairs, RBI updates, Budget 2025, and government schemes — simplified for fast learning and long-term retention.

Why Learning Economic Terms is Crucial for UPSC

Economy terms are not just words—they are concepts that frequently appear in:

  • UPSC Prelims MCQs
  • GS3 Mains answer writing
  • Interview questions

By understanding these terms:

  • You reduce confusion during the exam.
  • You can answer both static and current affairs questions with confidence.
  • You improve your score in economy-heavy topics like banking, finance, and fiscal policy.

Top 50 Economy Terms Every Aspirant Must Know

We’ve categorized them for easier memorization:

1. Monetary Policy & RBI Terms

  1. Repo Rate
  2. Reverse Repo Rate
  3. Cash Reserve Ratio (CRR)
  4. Statutory Liquidity Ratio (SLR)
  5. Standing Deposit Facility (SDF)
  6. Liquidity Adjustment Facility (LAF)
  7. Marginal Standing Facility (MSF)
  8. Open Market Operations (OMO)
  9. Monetary Policy Committee (MPC)
  10. Neutral Real Interest Rate

2. Banking & Finance Terms

  1. Non-Performing Assets (NPA)
  2. Priority Sector Lending (PSL)
  3. Net Stable Funding Ratio (NSFR)
  4. Capital Adequacy Ratio (CAR)
  5. Basel III Norms
  6. Asset Reconstruction Company (ARC)
  7. Microfinance
  8. Financial Inclusion
  9. Credit Guarantee Scheme
  10. Public Sector Banks (PSBs)

3. Government Policies & Schemes

  1. Atmanirbhar Bharat
  2. Make in India
  3. PM GatiShakti
  4. Startup India
  5. National Infrastructure Pipeline (NIP)
  6. Production Linked Incentive (PLI) Scheme
  7. Swachh Bharat Cess
  8. GST Compensation Fund
  9. National Monetisation Pipeline (NMP)
  10. Pradhan Mantri Jan Dhan Yojana (PMJDY)

4. Fiscal Policy & Budget Terms

  1. Fiscal Deficit
  2. Revenue Deficit
  3. Primary Deficit
  4. Capital Expenditure
  5. Revenue Expenditure
  6. Disinvestment
  7. Tax-to-GDP Ratio
  8. Direct vs Indirect Tax
  9. Goods & Services Tax (GST)
  10. Budget Estimates (BE), Revised Estimates (RE), Actuals

5. Economic Indicators & Market Terms

  1. Inflation (CPI & WPI)
  2. Unemployment Rate
  3. Balance of Payments (BoP)
  4. Current Account Deficit (CAD)
  5. Forex Reserves
  6. Bond Yield Curve
  7. Foreign Direct Investment (FDI)
  8. Foreign Portfolio Investment (FPI)
  9. Purchasing Power Parity (PPP)
  10. Human Development Index (HDI)

How to Memorize These Terms Effectively

  1. Categorize & Learn: Break them into groups like we did above.
  2. Use Daily Current Affairs: Connect terms to RBI, Budget, or policy news.
  3. Flashcards & Notes: Quick daily revision boosts retention.
  4. Practice MCQs: 100% of terms above appear in Prelims practice questions.
  5. Answer Writing Integration: Link terms to examples in Mains answers.

Conclusion

Mastering these 50 economic terms will give you a huge advantage in UPSC exams. With this list, you can confidently tackle MCQs, write structured Mains answers, and impress interview panels.

UPSC Prelims 2025 Notes