Economic theories hold significant importance in the UPSC syllabus, as they provide foundational knowledge for understanding complex issues related to development, poverty, and inequality. Familiarity with key concepts, like inflation, GDP, and economic growth, enables candidates to critically evaluate government policies and their implications. Additionally, applying economic theories in current affairs allows for a deep analysis of national and global scenarios. The UPSC syllabus often integrates economics with subjects like politics and environment, necessitating a holistic understanding. Thus, mastering economic theories is essential for effective preparation and a nuanced approach to exam questions.