CBSE Syllabus Class 12 Economics

On July 5, 2021, CBSE had announced that the Syllabus for Class 12 Board Exams will be reduced as per a Term-based Examination System and on July 22, 2021, they finalised the reduced syllabus as well by providing updated PDFs.

CBSE Class 12 Syllabus has undergone drastic changes since the previous 2020-21 session. Due to the COVID-19 pandemic, the education system has been challenging for both teachers and students.

So, similar to the 30% reduction in the last session, CBSE decided to reduce the overall syllabus according to the Term-based Board Examination for the 2021-22 session again.

We, at Educart, were prompt about it and have updated the changes in all the subjects for you. Here, you can find:

  • freely-downloadable PDF links to the latest reduced Class 12 Economics Syllabus for 2021-22 academic session; and
  • simple analysis of all the deleted topics/ chapters for 2021-22 Term-based Board Exam.

With all this information in hand, both teachers and students will have a defined structure to begin the learning process on time and efficiently.


Class 12 Economics Reduced Syllabus for 2021-22 (Reduced)

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We have also provided the syllabus for the 2021-22 session that was previously restored so that you can compare the deleted and added topics.

Class 12 Economics Reduced Syllabus for 2021-22 (Restored Previously)

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Now, let us take a look at the syllabus for Term I and Term II Board Exams in detail and try to understand what changes have been made.


<red> Marked in red: <red> Topics <red> removed <red> for 2021-22

Term I

Units Unit Names Marks
Part A: Introductory Macroeconomics
II Money and Banking 06
IV Government Budget and the Economy 06
V Balance of Payments 06
Part B: Indian Economic Development
VI Development Experience (1947-90) and Economic
Reforms since 1991
12
VII Current Challenges facing Indian Economy 10
Project Work 10
TOTAL 50

NOTE: Students would prepare only ONE project in the entire academic session, which is divided into 2 terms i.e. Term I and Term II.


Part A: Introductory Macroeconomics

Unit II Money and Banking

  • 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 through Bank Rate, CRR, SLR, Repo Rate and Reverse Repo Rate, Open Market Operations, Margin requirement.


Unit IV Government Budget and the Economy

  • 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 V Balance of Payments

  • Balance of payments account - meaning and components; balance of payments deficit meaning.
  • Foreign exchange rate - meaning of fixed and flexible rates and managed floating.
  • Determination of exchange rate in a free market.


Part B: Indian Economic Development

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

  • A brief introduction of the state of the 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 VII Current Challenges Facing Indian Economy

  • 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; Growth of Education Sector in India
  • Rural development: Key issues - credit and marketing - role of cooperatives; agricultural diversification; alternative farming - organic farming
  • Employment: Growth and changes in work force participation rate in formal and informal sectors; problems and policies
  • Infrastructure: Meaning and Types: Case Studies: Energy and Health: Problems and Policies- A critical assessment
  • Sustainable Economic Development: Meaning, Effects of Economic Development on Resources and Environment, including global warming


Term II

Units Unit Names Marks
Part A: Introductory Macroeconomics
I National Income and Related Aggregates 10
III Determination of Income and Employment 12
Part B: Indian Economic Development
VII Current Challenges facing Indian Economy 12
VIII Development Experience of India - A Comparison with Neighbours 06
Project Work 10
TOTAL 50

NOTE: Students would prepare only ONE project in the entire academic session, which is divided into 2 terms i.e. Term I and Term II.


Part A: Introductory Macroeconomics

Unit II Money and Banking

  • 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 IV Government Budget and the Economy

  • 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 V Balance of Payments

  • Balance of payments account: meaning and components; <red> balance of payments deficit meaning. <red>
  • Foreign exchange rate - meaning of fixed and flexible rates and managed floating.
  • <red> Determination of exchange rate in a free market. <red>


Part B: Indian Economic Development

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

  • A brief introduction of the state of the 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 VII Current Challenges Facing Indian Economy

  • 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; <red> Growth of Education Sector in India <red>
  • Rural development: Key issues - credit and marketing - role of cooperatives; agricultural diversification; <red> alternative farming - organic farming <red>


Term II

Units Unit Names Marks
Part A: Introductory Macroeconomics
I National Income and Related Aggregates 10
III Determination of Income and Employment 12
Part B: Indian Economic Development
VII Current Challenges facing Indian Economy 12
VIII Development Experience of India - A Comparison with Neighbours 06
Project Work 10
TOTAL 50

NOTE: Students would prepare only ONE project in the entire academic session, which is divided into 2 terms i.e. Term I and Term II.

Part A: Introductory Macroeconomics

Unit I: National Income and Related Aggregates

  • 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 Deflator.
  • GDP and Welfare


Unit III Determination of Income and Employment

  • 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.


Part B: Indian Economic Development

Unit VII Current Challenges Facing Indian Economy

  • Employment: Growth and changes in work force participation rate in formal and informal sectors; problems and policies
  • Infrastructure: Meaning and Types: Case Studies: Energy and Health: Problems and Policies- A critical assessment
  • Sustainable Economic Development: Meaning, Effects of Economic Development on Resources and Environment, including global warming


Unit VIII Development Experience of India

  • A comparison with neighbours
  • India and Pakistan
  • India and China
  • Issues: Economic growth, population, sectoral development and other Human Development Indicators


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Each book includes all possible types of MCQs (Competency-based, Case/ Extract/ Poem-based, A/R type), Chapter-wise Notes, Self Practice Questions, and Topper's Answers. You will have an abundance of questions to practice.

Any other information regarding CBSE curriculum, paper pattern, study material, and notifications is available below in the supporting links.