CBSE Class 12 Economics Syllabus 2026-27 - Download Free PDF

Unit-name

Chapters and Topics

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 Deflator, GDP, and Welfare

Unit 2: Money and Banking

• 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.

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

Unit 5: Balance of Payments

• Balance of payments account - meaning and components;
• Balance of payments – Surplus and Deficit,
• Foreign exchange rate - meaning of fixed and flexible rates and managed floating rates.
• Determination of exchange rate in a free market, Merits and demerits of flexible and fixed exchange rates.
• Managed a floating exchange rate system

Unit name

Chapters and Topics

Unit 6 - Development Experience (1947-90) and Economic Reforms since 1991

• A brief introduction to the state of the Indian economy on the eve of independence. The Indian economic system and the common goals of the 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 the Indian Economy

• Human Capital Formation: How people become resources; 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 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.

Unit 8: Development Experience in India

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