Understanding economic concepts is significant for UPSC exams as it forms the foundation for various topics within the syllabus. Grasping key concepts such as inflation, GDP, and fiscal policies is essential for both the prelims and mains, as economics intertwines with governance, public administration, and social issues. A strong understanding of economics enables candidates to critically analyze current events and relate them to broader socio-economic implications. Moreover, being well-versed in these concepts enhances aspirants' capability to address complex questions confidently and coherently during the examination.