Class 12th Economics Syllabus 2021-22 CBSE Board


Economics is a very important subject of Commerce Stream Class 12. ECO, the subject is quite scoring and with little conept gripping a student can secure goods marks.

As the new session has begun, I am sharing the syllabus of Economics class 12th of CBSE Board 2021-22 session.

Economics paper consists of Theory written paper and project work.

Theory Paper consists or two part A and B each have 40 marks weightage.

Let’s have a look over the complete syllabus of the economics paper in detail for 2021 – 22 CBSE Board

Is there any change in syllabus of Economics class 12 CBSE 2021-22?

For 2021-22 session, as such there is no change in syllabus for the time being. If there is any change I would update in this post.

Class 12th Economics syllabus 2021-22 CBSE Board

Theory: 80 Marks – 3 Hours
Project: 20 Marks

Part – AIntroductory Macroeconomics
National Income and Related Aggregates1228
Money and Banking615
Determination of Income and Employment1027
Government Budget and the Economy615
Balance of Payments615
Part – BIndian Economic Development
Development Experience (1947 – 90)
and Economics Reforms since
Current Challenges facing Indian Economy22
Development Experience of India – A Comparison with
Theory Paper (40 + 40) = 80 Marks40100
Part – CProject Work2020

If you want to see Economics Syllabus in video format here it is.

Read Here:- Class 12th Accountancy syllabus of CBSE Board for 2021-22 Session

Question Marking scheme of Economics Paper Class 12 for 2021-22 session

There are a total of 34 Question and divided into two parts of 17 question each as follows:-

Part – A:- Total 17 questions

1 to 1o – 1 Mark Each
11 to 12 – 3 Mark Each
13 – 15 – 4 Mark Each
16 – 17 – 6 Mark Each

Part – B:- Total 17 Questions

18 – 27 – 1 Mark Each
28 – 29 – 3 Mark Each
30 -32 – 4 Mark Each
33 – 34 – 6 Mark Each

1.This question paper contains two parts:
Part A – Macro Economics (40 marks)
Part B – Indian Economic Development (40 marks).
2.Marks for questions are indicated against each question.
3.Question No. 1-10 and Question No. 18 โ€“ 27 (including two Case-Based Questions) are 1 mark questions and are to be answered in one word/sentence.
4.Case-Based Questions (CBQโ€™s) are Question No. 7-10 and Question No. 25-27.
5.Question No. 11-12 and Question No. 28 โ€“ 29 are 3 marks questions and are to be answered in 60 – 80 words each.
6.Question No. 13-15 and Question No. 30 โ€“ 32 are 4 marks questions and are to be answered in 80-100 words each.
7.Question No. 16-17 and Question No. 33 โ€“ 34 are 6 marks questions and are to be answered in 100-150 words each.
8.Answers should be brief and to the point and the above word limit be adhered to as far as possible.

Part A: Introductory Macroeconomics

Unit 1: National Income and Related Aggregates 28 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 15 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.
  • The 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 3: 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.

Unit 4: Government Budget and the Economy

  • Government budget – meaning, objectives and components.
  • Classification of receipts – revenue receipts and capital receipts; classification of expenditure โ€“ revenue expenditure and capital expenditure.
  • Measures of government deficit – revenue deficit, fiscal deficit, primary deficit their meaning.

Unit 5: 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 6: 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 โ€“ role & importance), and foreign trade.

Economic Reforms since 1991:

  • Features and appraisals of liberalization, globalization, and privatization (LPG policy); Concepts of demonetization and GST.

Unit 7: Current challenges facing Indian Economy 60 Periods

  • Poverty- absolute and relative; Main programs 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 the workforce 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 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

20 marks

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.
  • The project should be 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 etc., 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 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 of the Practical Exams of Economics Class 12 CBSE 2021-22 :
Marks are suggested to be given as โ€“

S.NHeadingMarks Allotted
1.Relevance of the topic3
2.Knowledge Content/Research Work6
3.Presentation Technique3
Total20 Marks

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.

Suggestive List of Projects:

Class – XII

Micro and Small Scale IndustriesFood Supply Channel in India
Contemporary Employment situation in IndiaDisinvestment policy of the government
Goods and Services Tax Act and its Impact on GDPHealth Expenditure (of any state)
Human Development IndexInclusive Growth Strategy
Self-help groupMonetary policy committee and its functions
Trends in Credit availability in IndiaRole of RBI in Control of Credit
Government Budget & its ComponentsTrends in budgetary condition of India
Exchange Rate determination โ€“ Method & TechniquesCurrency War โ€“ reasons and repercussions
Livestock โ€“ Backbone of Rural IndiaAlternate fuel โ€“ types and importance
Sarwa Siksha Abhiyan โ€“ Cost Ratio BenefitsGolden Quadrilateral- Cost ratio benefit
Minimum Support PricesRelation between Stock Price Index and
Economic Health of Nation
Waste Management in India โ€“ Need of the hourMinimum Wage Rate โ€“ approach and
Digital India- Step towards the futureRain Water Harvesting โ€“ a solution to water
Vertical Farming โ€“ an alternate waySilk Route- Revival of the past
Make in India โ€“ The way aheadBumper Production- Boon or Bane for the
Rise of Concrete Jungle- Trend AnalysisOrganic Farming โ€“ Back to Nature
Any other newspaper article and its
evaluation on basis of economic principles
Any other topic

Frequently Asked Questions

Q. Is there any changes in CBSE class 12 Economics Syllabus for 2021-22?

Ans:- The Central Board of Secondary Education (CBSE) has decided not to reduce the syllabus for class 12 Economics for the 2021-22 academic year.

Q. How many units are there in the new syllabus of economics class 12 CBSE 2021-22?

Ans:- There are total of 8 units in the CBSE syllabus class 12 economics 2021-22 academic year.

Q. What are the essential topics that need to be prepared under CBSE class 12 Economics syllabus?

Ans:- National income and related aggregates, money and banking, government budget and the economy, current challenges facing the Indian economy are essential topics that need to be prepared under the CBSE class 12 Economics Syllabus.

Q. What is CBSE Class 12 Economics syllabus part A?

Ans:- The class 12 Economics syllabus comprises of Macro-Economics
1. National Income and Related Aggregates
2. Money and Banking
3. Determination of Income and Employment
4. Government Budget and the Economy
5. Balance of Payments