UPSC evaluates a candidate's understanding of the Indian economy through various means, including direct questions in the Prelims and Mains exams. Candidates are tested on their knowledge of economic concepts, policy implications, and current economic trends. Additionally, the examination assesses candidates’ ability to analyze economic data and understand its significance in socio-economic contexts. Grasping the dynamics of the Indian economy enables candidates to connect macroeconomic principles with real-life implications, which is crucial for providing comprehensive answers and effectively tackling questions related to economic policies and welfare schemes.