General Studies Concepts – Current Affairs (Scoring Section)

Key concepts for UPSC / PSC Prelims and Mains

1. Inflation

Inflation refers to a sustained increase in the general price level of goods and services in an economy.

• Reduces purchasing power
• Measured using CPI & WPI
• Controlled by monetary policy

Exam Focus: Basic economic concept

2. GDP (Gross Domestic Product)

GDP is the total value of goods and services produced within a country during a specific period.

• Indicator of economic growth
• Includes consumption, investment, government spending, net exports

Exam Focus: Growth measurement

3. FDI & FPI

• FDI: Long-term investment in businesses
• FPI: Short-term investment in financial markets

Exam Focus: Difference between FDI and FPI

4. Strait (Geography Concept)

A strait is a narrow water passage connecting two larger water bodies.

• Example: Strait of Hormuz
• Important for global trade

Exam Focus: Geography + IR

5. Renewable Energy

Energy obtained from natural resources that are replenished continuously.

• Solar energy
• Wind energy
• Hydropower

Exam Focus: Environment + sustainability

Quick Concept Link:

Inflation + GDP + Investment + Energy → Economy + Environment + IR integration

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