Academic Year (2022 - 23)


One Paper - Time - Three Hours - Marks 100



Economics is one of the social sciences which has a lot of influence on every human being. Yet it received little attention in the school curriculum in India. As economic life and the economy go through changes, the need to ground education in children’s own experience becomes essential. While doing so, it is imperative to provide them with opportunities to acquire analytical skills to observe and understand the economic realities.

Bringing economics as an abstract knowledge in the early stages of school education would promote rote learning of the subject.

At the higher secondary stage, learners are in a position to understand abstract ideas, exercise the power of thinking and to develop their own perception. It is at this stage, the learners are exposed to the rigour of the discipline of economics in a systematic way.

Economics courses are being introduced in such a way that, in the initial stage, the learners are introduced to the economic realities that the nation is facing today, along with some basic statistical tools to understand these broader economic realities. In the later stage, the learners are to be introduced to economics as a theory of abstraction.

The economics courses also contain many projects and activities. These will provide opportunities for the learners to explore various economic issues both from their day-to-day life and also issues which are broader and invisible in nature. The academic skills that they acquire in these courses would help to develop the projects and activities. The syllabus is also expected to provide opportunities to use information and communication technologies to facilitate their learning process.


Ø Understanding of some basic economic concepts and developing economic reasoning which the learners can apply in their day-to-day life as citizens, workers and consumers.

Ø Realisation or learners’ role in nation building and sensitise them to the economic issues that the nation is facing today.

Ø To equip learners with basic tools of economics and statistics to analyse economic issues. This is pertinent for even those who may not pursue this course beyond the higher secondary stage.

Ø To develop an understanding that there can be more than one view on any economic issue and to develop the skills to argue logically with reasoning.

The economics subject should be taught in two years at the higher secondary stage. The details of course for each semester are as follows:



One Paper

Three Hours

Marks 100 [80 (theory) + 20 (project)]

Unit wise Distribution of Marks and Periods:

Part A: Introductory Macroeconomics

Unit No.





National Income and Related Aggregates.




Determination of Income and Employment.




Money and Banking.




Government Budget and the Economy.




Balance of Payment.




Total Marks



 Part B: Indian Economic Development

Unit No.





Development Experience (1947-1990).




Economic Reforms since 1991.




Current Challenges facing Indian Economy.




Development Experience of India: A comparison with neighbours




Total Marks



Part C: Project Work in Economics  20 Marks

Part A: Introductory Macroeconomics

Unit :1 National Income and Related Aggregates  (Marks 10; Periods 24)

v  What is Macroeconomics?

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

v  Circular flow of income (two sector model) Methods of calculating National Income- Value added or Product method, Expenditure Method, Income Method.

v  Aggregates related to National Income:

v  Gross National Product (GNP), Net National Product (NNP), Gross Domestic Product (GDP) and Net Domestic Product (NLDP) - at market price, at factor cost; Real and Nominal GDP, Personal Income, Private Income, Personal Disposable Income, national Disposable Income (Gross &Net).

v  Simple mathematical applications of national Income concepts

v  GDP and Welfare.

Unit 2: Determination of income and Employment   (Marks 12; Periods 25)

Ø  Aggregate demand and its components.

Ø  Aggregate Supply and ifs components.

Ø  Effective Demand.

Ø  Propensity to consume and propensity to save (average and Marginal).

Ø  Short-un equilibrium output; investment multiplier and its mechanism.

Ø  Meaning of full employment and involuntary unemployment.

Ø  Problems of excess demand and deficient demand; measures to correct them- change in government spending, taxes and money supply.

Ø  Determination of Income and Employment (2 sector model).

Unit 3: Money and Banking  (Marks 6; Periods 12)

Ø  Money - Meaning, evolution and functions

Ø  Commercial Banks- Meaning and functions.

Ø  Credit creation by the commercial banks.

Ø  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 4: Government Budget and the Economy  (Marks 6; Periods 12)

v  Government budget- meaning, objectives and components.

v  Classification of receipts revenue receipts and capital receipts.

v  Classification of expenditure - revenue expenditure and capital expenditure, Plan and Non-plan expenditure, Developmental and Non-Developmental expenditure.

v  Measures of Government deficit- Revenue deficit, Fiscal deficit, Primary deficit their meaning.

v  Balanced Budget, Surplus Budget and Deficit Budget meaning

Unit 5: Balance of Payments       (Marks 6; Periods 12)

Ø  Balance of Payments account- meaning and components, balance of payments deficit meaning

Ø  Foreign exchange -meaning of fixed and flexible rates and managed floating.

Ø  Spot and Forward exchange rate (concept only).

Ø  Determination of exchange rate in free market.

Ø  Foreign Exchange Market (concept only)

Part B: Indian Economic Development

Unit 6: Development Experience (1947-1990)  (Marks 7; Periods 13)

v  A brief introduction of the states of Indian economy on the eve of the independence.

v  Indian economic system and common goals of Five Years Plans.

v  Main features, problems and policies of agriculture (institutional aspects and new agricultural strategy)

v  Industry (1PR 1956; SSI- role & importance) and foreign trade.

Unit 7: Economic Reforms since 1991 (Marks 5; Periods 10)

v  Features and appraisals of liberalization, globalisation and privatisation (LPG Policy)

v  Concept of demonetization and GST.

v  NITI Aayog

Unit 8: Current Challenges facing Indian Economy (Marks 22; Periods 55)

Ø  Poverty- absolute and relative; Main programmes for poverty alleviation: A critical assessment.

Ø  Human Capital Formation: How people become resource, Role of human capital in economic development; Growth of Education Sector in India

Ø  Rural Development: Key Issues- credit and marketing role of co-operatives, agricultural diversification; alternative faming- organic farming.

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

Ø  Infrastructure: Meaning and Types: Case Studies: Energy and Health: Problems and Policies - A critical assessment.

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

[N.B.: at the time of discussion of the above topics in unit 8, the faculty/ teacher should also make references about the Assam Economy]

Unit8: Development Experience of India: A comparison with neighbours (Marks 6; Periods 7)

Ø  India and Pakistan

Ø  India and China

Ø  India and Bangladesh

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

Part C: Project in Economics       (Marks 20; Periods 20)

Guidelines for Project Work in Economics (Class XII)

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

v  Probe deeper into theoretical concepts learnt in classes Xl and XII

v  Analyse and evaluate real world economic scenarios using theoretical constructs and

v  arguments

v  Demonstrate the learning of economic theory

v  Follow up aspects of economics in which learners have interest.

v  Develop the communication skills to argue logically

The expectations of the project work are that:

v  Learners will complete only ONE project in each academic session

v  Project should be of 3500- 4000 words (excluding diagrams & graphs), preferably hand- written

v  lt will be an independent, self -directed piece of study

Role of the teacher:

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

Ø  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 etc., after detailed discussions and deliberations of the topic

Ø  Play the role of a Facilitator and Supervisor to monitor the project work of the learner through periodic discussions

Ø  Guide the research work in terms of sources for the relevant data

Ø  Educate learner about plag1arism and the importance of quoting the source of the informati0n to ensure authenticity of research work

Ø  Prepare the learner for the presentation of the project work

Ø  Arrange a presentation of the project file

Scope of the project:

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

v  Choose a title/ topic

v  Collection of the research material/ data

v  Organization of material/ data

v  Present material/ data

v  Analysing the material/ data for conclusion

v  Draw the relevant conclusion

v  Presentation of the Project Work

Expected Checklist:

Ø  Introduction of topic/title

Ø  Identifying the causes, consequences and/or remedies

Ø  Various stakeholders and effect on each of them

Ø  Advantages and disadvantages of situations or issues identified

Ø  Short-term and long-term implications of economic strategies suggested in the course of research

Ø  Validity, reliability, appropriateness and relevance of data used for research work and Presentation in the project file

Ø  Presentation and writing that is succinct and coherent in project file

Ø  Citation of the materials referred to, in the file in footnotes, resources section, bibliography etc.

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:

SL. No.


Marks Allotted


Relevance of the topic.



Knowledge Content/Research.



Presentation Technique.





 Suggestive list of projects

Class XII

Ø   Micro and small Scale Industries.

Ø  Food Supply Channel in India.

Ø   Contemporary Employment situation in India.

Ø  Disinvestment policy of the government.

Ø   Goods and Service Tax Act and its impact on GDP.

Ø  Health Expenditure (of any state)

Ø   Human Development Index.

Ø  Inclusive Growth Strategy.

Ø   Self-Help Group.

Ø  Trends in Credit availability in India.

Ø   Functions of Commercial Bank and Central Bank.

Ø  Environmental challenges facing India (e.g. Global warming) (may be a problem pertaining to the locality).

Ø   Employment and other related issues in India.

Ø  Poverty in India.

Ø   Monetary policy committee and its functions.

Ø  Role of RBI in control of Credit.

Ø   Government Budget and its components.

Ø  Trends in budgetary condition of India.

Ø   Exchange Rate determination-Methods and Techniques.

Ø  Currency War-reasons of repercussions.

Ø   Livestock-Backbone of Rural India.

Ø  Alternate fuel-types and importance.

Ø   Sarwa Siksha Abhiyan-cost Ratio benefits.

Ø  Golden Quadrilateral-Cost ratio benefit.

Ø   Minimum Support Price.

Ø  Relation benefit stock Price Index and Economic Health of the Nation.

Ø   Waste Management in India-Need of the hour.

Ø  Minimum Wage rate – Approach and Application.

Ø   Digital India-Step towards the future.

Ø  Rain Water Harvesting – a solution to water crisis.

Ø   Vertical Farming-an alternate way.

Ø  Silk Route-Revival of the past.

Ø   Make in India-The way ahead.

Ø  Bumper Farming-Back to the nature.

Ø   Raise of the Concrete Jungle-Trend Analysis.

Ø  Organic Farming-Back to the Nature.

Ø   Any other newspaper article and its evaluation on the basis of economic principles.

Ø  Any other topic (specially related to own States/regions/locality etc.)


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