CBSE Class 12 Economics Syllabus 2020-21 (Revised & Reduced By 30%): Download PDF

Check & download revised & reduced CBSE Class 12 Economics Syllabus 2020-21 in PDF format. Direct link to download PDF of CBSE Class 12 Economics Syllabus 2020-21 is given at the end of this article. It contains complete details about the complete course structure, paper pattern and project work of CBSE Class 12 Economics.

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CBSE Class 12 Economics Syllabus 2020-21  (Revised & Reduced By 30%):





Part A

Introductory Macroeconomics




National Income and Related Aggregates




Money and Banking




Determination of Income and Employment




Government Budget and the Economy




Balance of Payments











Part B

Indian Economic Development




Development Experience (1947-90)

and Economic Reforms since 1991






Current Challenges facing Indian Economy




Development Experience of India – A Comparison with







Theory Paper (40+40 = 80 Marks)







Part C

Project Work




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Part A: Introductory Macroeconomics


Unit 1: 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 and Welfare

Unit 2: 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 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 through Bank Rate, CRR, SLR, Repo Rate and Reverse Repo Rate, Open Market Operations, Margin requirement.

Unit 4: 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 5: Balance of Payments

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:

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 

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: 

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 (Available in PDF)

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.

CBSE Class 12 Economics Syllabus (Reduced) 2020-21 PDF (Released on 7th July)

CBSE Class 12 Economics Syllabus: 2020-21 (April)

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