Understanding the Indian Economy is vital for UPSC preparation, particularly as it encompasses major themes in the syllabus and current affairs. Key areas such as economic development, policies, and financial institutions are crucial for both the preliminary and mains exam. A strong grasp of the economy enables candidates to analyze issues effectively and correlate them with historical context. Furthermore, it enhances their ability to tackle problems related to economic planning and decision-making, which are frequent topics in interviews as well.