Revised CBSE Syllabus 2021 for Class 12 Economics

Revised CBSE Syllabus 2021 for Class 12 Economics



Theory: 80 Marks                                                                                                      3 Hours

Project: 20 Marks

Units Marks Periods
Part A Introductory Macroeconomics
National Income and Related Aggregates 10 23
Money and Banking 6 8
Determination of Income and Employment 12 22
Government Budget and the Economy 6 15
Balance of Payments 6 7
40 75
Part B Indian Economic Development
Development Experience (1947-90) and Economic Reforms since 1991 12 28
Current Challenges facing Indian Economy 22 35
Development Experience of India – A Comparison with Neighbours 06 12
Theory Paper (40+40 = 80 Marks) 40 75
Part C Project Work 20 15


Part A: Introductory Macroeconomics

Unit 1: National Income and Related Aggregates                                                23 Periods

What is Macroeconomics?

Basic concepts in macroeconomics: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation.

Circular flow of income (two sector model); Methods of calculating National Income – Value Added or Product method, Expenditure method, Income method.

Aggregates related to National Income:

Gross National Product (GNP), Net National Product (NNP), Gross Domestic Product (GDP) and Net Domestic Product (NDP) – at market price, at factor cost; Real and Nominal GDP.

GDP and Welfare


Unit 2: Money and Banking                                                                                     8 Periods

Money – meaning and supply of money – Currency held by the public and net demand deposits held by commercial banks.


Money creation by the commercial banking system.


Central bank and its functions (example of the Reserve Bank of India): Bank of issue, Govt. Bank, Banker’s Bank, Control of Credit


Unit 3: Determination of Income and Employment                                              22 Periods

Aggregate demand and its components.

Propensity to consume and propensity to save (average and marginal). Short-run equilibrium output; investment multiplier and its mechanism. Meaning of full employment and involuntary unemployment.


Problems of excess demand and deficient demand; measures to correct them – changes in government spending, taxes and money supply through Bank Rate, CRR, SLR, Repo Rate and Reverse Repo Rate, Open Market Operations, Margin requirement.


Unit 4: Government Budget and the Economy                                                     15 Periods


Government budget – meaning, objectives and components.


Classification of receipts – revenue receipts and capital receipts; classification of expenditure – revenue expenditure and capital expenditure.


Measures of government deficit – revenue deficit, fiscal deficit, primary deficit their meaning.


Unit 5: Balance of Payments                                                                                   7 Periods

Balance of payments account – meaning and components;

Foreign exchange rate – meaning of fixed and flexible rates and managed floating.


Part B: Indian Economic Development


Unit 6: Development Experience (1947-90) and Economic Reforms since 1991:

28 Periods

A brief introduction of the state of Indian economy on the eve of independence. Indian economic system and common goals of Five Year Plans.


Main features, problems and policies of agriculture (institutional aspects and new agricultural strategy), industry (IPR 1956; SSI – role & importance) and foreign trade.

Economic Reforms since 1991:

Features and appraisals of liberalisation, globalisation and privatisation (LPG policy); Concepts of demonetization and GST


Unit 7: Current challenges facing Indian Economy                                             35 Periods Poverty– absolute and relative; Main programmes for poverty alleviation: A critical assessment;

Human Capital Formation: How people become resource; Role of human capital in economic development;

Rural development: Key issues – credit and marketing – role of cooperatives; agricultural diversification;

Employment: Growth and changes in work force participation rate in formal and informal sectors; problems and policies

Infrastructure: Meaning and Types: Case Studies: Health: Problems and Policies- A critical assessment;

Sustainable Economic Development: Meaning, Effects of Economic Development on Resources and Environment, including global warming


Unit 8: Development Experience of India:                                                             12 Periods

A comparison with neighbours India and Pakistan

India and China

Issues: economic growth, population, sectoral development and other Human Development Indicators

Part C: Project in Economics                                                           15 Periods


Prescribed Books:

  1. Statistics for Economics, NCERT
  2. Indian Economic Development, NCERT
  3. Introductory Microeconomics, NCERT
  4. Macroeconomics, NCERT
  5. Supplementary Reading Material in Economics, CBSE

Note: The above publications are also available in Hindi Medium.


Suggested Question Paper Design Economics (Code No. 030)

Class XII (2020-21)

March 2021 Examination


Marks: 80                                                                                                       Duration: 3 hrs.


SN Typology of Questions Marks Percentage



Remembering and Understanding:

Exhibit memory of previously learned material by recalling facts, terms, basic concepts, and answers.

Demonstrate   understanding    of   facts   and   ideas    by organizing, comparing, translating, interpreting, giving

descriptions, and stating main ideas









Applying: Solve problems to new situations by applying

acquired knowledge, facts, techniques and rules in a different way.










Analysing, Evaluating and Creating:

Examine and break information into parts by identifying motives or causes. Make inferences and find evidence to support generalizations.

Present and defend opinions by making judgments about information, validity of ideas, or quality of work based on a set of criteria.

Compile information together in a different way by combining elements in a new pattern or proposing alternative solutions.











Total 80 100%


Guidelines for Project Work in Economics (Class XI and XII)


The objectives of the project work are to enable learners to:

  • probe deeper into theoretical concepts learnt in classes XI and XII
  • analyse and evaluate real world economic scenarios using theoretical constructs and arguments
  • demonstrate the learning of economic theory
  • follow up aspects of economics in which learners have interest
  • develop the communication skills to argue logically The expectations of the project work are that:
  • learners will complete only ONE project in each academic session
  • project should be of 3,500-4,000 words (excluding diagrams & graphs), preferably hand-written
  • it will be an independent, self-directed piece of study

Role of the teacher:

The teacher plays a critical role in developing thinking skills of the learners. A teacher should:

  • help each learner select the topic based on recently published extracts from the news media, government policies, RBI bulletin, NITI Aayog reports, IMF/World Bank reports , after detailed discussions and deliberations of the topic
  • play the role of a facilitator and supervisor to monitor the project work of the learner through periodic discussions
  • guide the research work in terms of sources for the relevant data
  • educate learner about plagiarism and the importance of quoting the source of the information to ensure authenticity of research work
  • prepare the learner for the presentation of the project work
  • arrange a presentation of the project file

Scope of the project:

Learners may work upon the following lines as a suggested flow chart:

Choose a title/topic Collection of the research material/data

Organization of material/data Present material/data

Analysing the material/data for conclusion Draw the relevant conclusion

Presentation of the Project Work


Expected Checklist:

  • Introduction of topic/title
  • Identifying the causes, consequences and/or remedies
  • Various stakeholders and effect on each of them
  • Advantages and disadvantages of situations or issues identified
  • Short-term and long-term implications of economic strategies suggested in the course of research
  • Validity, reliability, appropriateness and relevance of data used for research work and for presentation in the project file
  • Presentation and writing that is succinct and coherent in project file
  • Citation of the materials referred to, in the file in footnotes, resources section, bibliography


Mode of presentation/submission of the Project:

At the end of the stipulated term, each learner will present the research work in the Project File to the External and Internal examiner. The questions should be asked from the Research Work/ Project File of the learner. The Internal Examiner should ensure that the study submitted by the learner is his/her own original work. In case of any doubt, authenticity should be checked and verified.

Marking Scheme :

Marks are suggested to be given as –

S. No. Heading Marks Allotted
1. Relevance of the topic 3
2. Knowledge Content/Research Work 6
3. Presentation Technique 3
4. Viva-voce 8
Total 20 Marks

Suggestive List of Projects:


Class XI
·         Effect on PPC due to various government policies ·         Invisible Hand (Adam Smith)
·         Opportunity Cost as an Economic Tool (taking real life situations) ·         Effect of Price Change on a Substitute Good (taking prices from real life visiting local


·         Effect on equilibrium Prices in Local Market (taking real life situation or recent news) ·         Effect of Price Change on a Complementary Good (taking prices from real life visiting

local market)

·         Solar Energy, a Cost Effective Comparison with Conventional Energy Sources ·         Bumper Production- Boon or Bane for the Farmer
·         Any other newspaper article and its evaluation on basis of economic principles ·         Any other topic


Class XII
·         Micro and Small Scale Industries ·         Food Supply Channel in India
·         Contemporary Employment situation in India ·         Disinvestment policy of the government
·         Goods and Services Tax Act and its Impact on GDP ·         Health Expenditure (of any state)
·         Human Development Index ·         Inclusive Growth Strategy
·         Self-help group ·         Trends in Credit availability in India
·         Monetary policy committee and its functions ·         Role of RBI in Control of Credit
·         Government Budget & its Components ·         Trends in budgetary condition of India
·         Exchange Rate determination – Methods and Techniques ·         Currency War – reasons and repercussions
·         Livestock – Backbone of Rural India ·         Alternate fuel – types and importance
·         Sarwa Siksha Abhiyan – Cost Ratio Benefits ·         Golden Quadrilateral- Cost ratio benefit
·         Minimum Support Prices ·         Relation between Stock Price Index and Economic Health of Nation
·         Waste Management in India – Need of the hour ·         Minimum Wage Rate – approach and Application
·         Digital India- Step towards the future ·         Rain Water Harvesting – a solution to water crises
·         Vertical Farming – an alternate way ·         Silk Route- Revival of the past
·         Make in India – The way ahead ·         Bumper Production- Boon or Bane for the farmer
·         Rise of Concrete Jungle- Trend Analysis ·         Organic Farming – Back to the Nature
·         Any other newspaper article and its evaluation on basis of economic principles ·         Any other topic



Revised CBSE Syllabus 2021 for Class 11 Economics