CBSE Class 12 Economics Syllabus 2025 - CBSE 12 Class Economics Syllabus Download PDF

Part A - Introductory Macroeconomics

National Income and Related Aggregates

Money and Banking

6 - Marks

Determination of Income and Employment

Government Budget and the Economy

6 - Marks

Balance of Payments

6 - Marks

Part B - Indian Economic Development

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

12 - Marks

Current Challenges Facing the Indian Economy

20 - Marks

Development Experience of India – A Comparison with Neighbours

Total Theory Paper

Project Work

• 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

• Money – meaning and functions, 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.

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.

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.
• Balanced, Surplus, and Deficit Budget – measures of government deficit.

Balance of Payments

• Balance of payments accounts - meaning and components.
• Balance of payments – Surplus and Deficit
• Foreign exchange rate - meaning of fixed and flexible rates and managed to float
• Determination of exchange rate in a free market, Merits and demerits of the flexible and fixed exchange rate.
• Managed Floating exchange rate system

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 liberalization, globalization, and privatization (LPG policy); Concepts of demonetization and GST

Current challenges facing the Indian Economy

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

Development Experience of India – A Comparison with Neighbours

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

• Revenue deficit, fiscal deficit, primary deficit their meaning

• Benefits and drawbacks of both fixed and flexible exchange rates.

• Absolute and relative poverty; key initiatives to reduce poverty: a critical evaluation
• Infrastructure: Definition and Categories Case Studies: Energy and Health: Issues and Strategies: An evaluative analysis

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

Sarva Shiksha Abhiyan – Cost Ratio Benefits

Golden Quadrilateral- Cost ratio benefit

Minimum Support Prices

Relation between Stock Price Index and Economic Health of a 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 crisis

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

Environmental Crisis

Comparative Study of Economies (Maximum three economies)

Aatmanirbhar Bharat

e-Rupee (e- ₹)

Sri Lanka’s Economic Crisis

Sustainable Development Goals (SDG’s)

New Education Policy (NEP) 2020: A Promise for a New Education System

G-20: Inclusive and Action Oriented

Amrit Kaal: Empowered and Inclusive Economy

Cashless Economy

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

Any other topic

1

Statistics for Economics

NCERT

2

Indian Economic Development

NCERT

3

Introductory Microeconomics

NCERT

4

Macroeconomics

NCERT

5

Supplementary Reading Material in Economics

CBSE