Every numerical formula, index, ratio, and key data point a CBSE Class 12 Economics student needs from Part B (cross-checked against the standard CBSE / NCERT IED syllabus), organised chapter-wise. Each entry lists its variables. No worked examples — pure reference.
Population ≈ 350 million
Crude Birth Rate ≈ 48 per 1,000
Crude Death Rate ≈ 40 per 1,000
Infant Mortality ≈ 218 per 1,000 live births
Life Expectancy ≈ 32 years
Literacy (overall) ≈ 16%
Female Literacy ≈ 7%
Census-era figures (1941 Census). The high CBR-CDR gap and very high IMR reflect the underdevelopment of British India.
Primary (agriculture etc.) ≈ 70-75%
Secondary (industry) ≈ 10%
Tertiary (services) ≈ 15-20%
Heavy concentration in agriculture reflects the colonial economy. Industrial base was minimal at independence.
Aggregate GDP growth ≈ 2% per annum
Per-capita GDP growth ≈ 0.5% per annum
Stagnation under British rule — population grew faster than the economy in many decades. Drain of wealth (Dadabhai Naoroji) eroded productive capacity.
Per Capita Income = National Income ÷ Population
Used to compare standards of living over time and across countries. National Income = NNP at Factor Cost.
Aggregate GDP growth (1950-80) ≈ 3.5% per annum
Per-capita GDP growth (1950-80) ≈ 1% per annum
Term coined by economist Raj Krishna. Critique of the slow, stagnant growth under the centrally-planned model — neither catastrophic nor accelerating.
1. Growth — increase in GDP and per-capita income
2. Modernisation — adoption of new technology and social outlook
3. Self-reliance — reduce dependence on imports and foreign aid
4. Equity — ensure benefits reach the poor and marginalised
CBSE 6-mark workhorse — every year. These goals guided every Five-Year Plan from 1951 to 1990.
HYV seeds introduced — 1967-68
Foodgrain production — ~50 mt (1950s) → ~176 mt (1990)
Wheat output multiplier — roughly 5x in 25 years
Geographic concentration — Punjab, Haryana, Western UP
Led by M.S. Swaminathan. Chemical fertilisers + HYV seeds + irrigation + pesticides. Transformed India from food-deficit to self-sufficient.
Launched 1970, led by Verghese Kurien (Amul / Anand pattern)
Made India world's largest milk producer
Cooperative-led dairy revolution. Distinct from Green Revolution (food grains).
Marketed Surplus = portion of farm output sold in the market
= Total Output − On-farm consumption
A key concept for the Green Revolution era — only the marketed surplus enters food supply chains. Subsistence farmers may have low marketed surplus despite producing food.
Forex reserves ≈ < $1 billion (~2 weeks of imports)
Inflation ≈ 16%+
Fiscal deficit (1990-91) ≈ 8.5% of GDP
Gold pledged — ~67 tonnes pledged to Bank of England
External debt — record-high; close to default
The crisis that triggered the LPG reforms. India had to seek IMF bailout and pledge gold reserves.
L — Liberalisation : remove industrial licensing, free private sector
P — Privatisation : reduce public sector ownership (disinvestment)
G — Globalisation : integrate with world economy (trade, investment, finance)
Initiated under PM P.V. Narasimha Rao and Finance Minister Manmohan Singh. Departure from the planning-era Permit-Licence Raj.
Stabilisation — short-term: correct BoP and inflation
Structural Reform — long-term: improve economy's efficiency and competitiveness
Two phases of the 1991 programme. Stabilisation came first (immediate crisis); structural reform was the longer agenda (LPG components).
WTO came into being — 1 January 1995
Replaced GATT — General Agreement on Tariffs and Trade (1947)
India is a founding member of the WTO
WTO administers global trade rules: TRIPS (intellectual property), TRIMS (investment), GATS (services). Membership requires reducing tariffs and removing trade barriers.
Disinvestment = sale of part / all of government's stake in a PSU
Different from privatisation: disinvestment can be partial; privatisation requires majority private ownership. Used to raise capital receipts and reduce fiscal deficit.
BPO = Business Process Outsourcing
KPO = Knowledge Process Outsourcing
India's advantage: low-cost English-speaking skilled workforce, time zones
India became a global hub for outsourced services post-1991, especially IT and BPO. Drove much of post-reform service-sector growth.
Rural area — 2,400 kcal per person per day
Urban area — 2,100 kcal per person per day
India defines poverty using a calorie-intake norm. Rural areas have a higher requirement because rural work involves more physical labour. Common MCQ trap — do not swap the two figures.
HCR = (Number of Poor ÷ Total Population) × 100
Percentage of population below the poverty line. India's HCR fell from ~55% (1973-74) to ~22% (2011-12). Limitation: treats all poor as equally poor.
I = (z − μ_p) ÷ z
z = poverty line; μ_p = mean income of the poor. Measures how far below the line the average poor person is, as a fraction of the poverty line. Used as an input to Sen's Index.
PGI = HCR × I = average shortfall of poor's income from poverty line,
expressed as a fraction of the poverty line
Captures the depth of poverty — how far below the line the poor fall on average. A larger PGI means deeper poverty even if HCR is unchanged.
Sen's Index = HCR × [I + (1 − I) × G]
HCR = Head Count Ratio (as a fraction); I = income gap ratio; G = Gini coefficient among the poor. Combines incidence (HCR), depth (I), and inequality (G) of poverty into a single index.
2004-05: Rural ₹447, Urban ₹579 per person per month
2011-12: Rural ₹816, Urban ₹1,000 per person per month
Tendulkar Committee thresholds, derived from Monthly Per Capita Consumption Expenditure (MPCE). CBSE primarily uses the 2011-12 figures.
Rural: ₹972 per person per month
Urban: ₹1,407 per person per month
Newer methodology than Tendulkar; uses normative consumption baskets including food + non-food essentials. Mentioned in NCERT 2025-26 syllabus extensions.
Chronic poor — always poor (long-term destitute)
Churning poor — move in and out of poverty (e.g. casual labourers)
Occasionally poor — usually non-poor; poor occasionally
Non-poor — never poor
NCERT-explicit classification. Useful for targeting anti-poverty programmes — chronic poor need direct welfare; churning poor need stable employment.
1993-94: 45.3%
2004-05: 37.2%
2011-12: 21.9%
Poverty ratio nearly halved between 1993 and 2012 per Tendulkar methodology. CBSE asks the trend.
Literacy Rate = (Number of Literates aged 7+ ÷ Population aged 7+) × 100
India's literacy as per Census 2011: 74% overall, 82.1% male, 65.5% female. Kerala highest (~94%); Bihar lowest (~63%). Youth literacy ≈ 86%.
GER = (Total Enrolment in a Level of Education ÷
Population in the Official Age Group for that Level) × 100
Measures access to education at each level (primary, secondary, higher). GER > 100% possible if older/younger students enrol. GER < 100% means under-enrolment.
Per Capita Education Expenditure = Total Govt Expenditure on Education ÷ Population
One indicator of investment in human capital.
Target (Kothari Commission, 1964-66) — 6% of GDP
Actual (current) — ≈ 4% of GDP
India consistently underspends on education relative to the Kothari target. Education expenditure as % of total government expenditure is currently around 10-15%.
1. Expenditure on education
2. Expenditure on health
3. On-the-job training
4. Migration (in search of better opportunities)
5. Expenditure on information / acquiring information
NCERT-explicit sources. Each builds skills, knowledge, or health that boost productive capacity.
RTE Act, 2009 — Free and compulsory education for children aged 6-14
— 25% reservation in private schools for EWS
Operationalised under Article 21A. Sets minimum infrastructure norms for schools.
Non-Institutional — Moneylenders, Traders, Landlords, Relatives
Institutional — Cooperatives, Commercial Banks, Regional Rural Banks (RRBs),
NABARD, SHG-Bank Linkage, Microfinance, Kisan Credit Card (KCC)
CBSE 6-mark workhorse. Moneylenders historically dominated; institutional credit has grown but moneylender dependence persists in remote areas.
NABARD — National Bank for Agriculture and Rural Development (est. 12 July 1982)
KCC — Kisan Credit Card scheme (launched 1998)
NABARD is the apex institution for agricultural and rural credit. KCC provides timely short-term credit to farmers at concessional rates.
MSP — Minimum Support Price, announced by govt before sowing
recommended by CACP (Commission for Agricultural Costs & Prices)
Buffer Stock — government-procured grain held for food security
Issue Price — subsidised price at which PDS sells grain to consumers
PDS — Public Distribution System (network of Fair Price Shops)
The chain: MSP procures from farmers → Buffer Stock holds it → PDS distributes via Fair Price Shops at Issue Price. AAY targets the poorest of poor (35 kg/family/month at heavily subsidised rates).
Diversification of Crops — shift from food grains to fruits, vegetables, flowers
Diversification of Activities — shift labour from agriculture to allied sectors
(dairy, poultry, fisheries) and non-farm employment
Reduces risk and raises rural incomes. Allied sectors are growing faster than crop agriculture in recent decades.
Green Revolution — food grains (Swaminathan)
White Revolution — milk & dairy (Kurien, Operation Flood, 1970)
Yellow Revolution — oilseeds
Blue Revolution — fish & aquaculture
Golden Revolution — horticulture (fruits, vegetables, honey)
Pink Revolution — meat & poultry processing
CBSE 1-mark MCQ workhorse — match each colour to its sector.
SHG — small group of 15-20 rural members who pool savings, lend internally
Linked to commercial banks (SHG-Bank Linkage Programme via NABARD, 1992)
A major channel of micro-credit and women's empowerment in rural India. NABARD's SHG-Bank Linkage is one of the world's largest microfinance programmes.
Labour Force = Persons employed (Workforce) + Unemployed actively seeking work
Workforce = Persons actually employed
A common CBSE trap. Workforce is a subset of Labour Force. The difference equals the number of unemployed who are actively seeking work.
LFPR = (Labour Force ÷ Total Population) × 100
Share of population that is in the labour market — either employed or actively seeking work.
WPR = (Workforce ÷ Total Population) × 100
Share of population that is actually employed. Difference between LFPR and WPR reflects unemployment.
Unemployment Rate = (Number Unemployed ÷ Labour Force) × 100
= ((Labour Force − Workforce) ÷ Labour Force) × 100
Share of the labour force that is unemployed. Note: denominator is Labour Force, not total population.
UPS (Usual Principal Status) — major time spent during last 365 days
UPSS (Usual Principal & Subsidiary) — UPS + minor activity in last 365 days
CWS (Current Weekly Status) — at least 1 hour worked during last 7 days
CDS (Current Daily Status) — half a day's work for each day of last 7 days
Different reference periods capture different forms of employment. CDS is the most comprehensive (catches casual / intermittent work); UPS is the narrowest.
1. Self-employed — own-account workers, employers, unpaid family workers (~52%)
2. Regular salaried — fixed wages or salary on regular basis (~18%)
3. Casual wage — irregular employment, paid by day or task (~30%)
Self-employment dominates Indian labour. Regular salaried is the smallest group. Percentages from PLFS — vary slightly year to year.
Disguised / Hidden — too many workers in one activity (marginal product = 0)
Seasonal — unemployment in off-season (agriculture)
Open — visibly without work, actively seeking
Structural — mismatch between worker skills and available jobs
Cyclical — unemployment during economic downturns
Frictional — temporary, between jobs
CBSE focuses heavily on disguised (rural agriculture) and seasonal (rural) unemployment as defining features of the Indian labour market.
Formal sector — enterprises with 10+ workers; formal contracts; social security
Informal sector — small unincorporated enterprises; no contracts; no social security
~ 90% of Indian workforce is in the informal sector
Informalisation of the workforce = rising share of informal workers; even formal enterprises increasingly hire contract/temporary workers without benefits.
Jobless Growth — economy grows (GDP rises) without proportional rise in employment
India experienced jobless growth in periods after 1991. Causes: capital-intensive growth, automation, shift from labour-intensive manufacturing to services.
MGNREGA — 100 days of guaranteed unskilled wage employment
per rural household per financial year
Mahatma Gandhi National Rural Employment Guarantee Act, 2005. Legal right; if work not provided within 15 days, unemployment allowance must be paid. Per household, not per individual.
Economic Infrastructure — Transport, Communication, Energy, Banking, Irrigation
Social Infrastructure — Education, Health, Housing, Sanitation
Both are essential for sustainable economic development. Economic infrastructure directly supports production; social infrastructure supports human capital.
IMR = (Infant deaths in a year ÷ Live births in same year) × 1,000
Infants dying before age 1, per 1,000 live births. Key health-infrastructure indicator. India's IMR has fallen from >100 (1990s) to ~26-28 (recent).
MMR = (Maternal deaths in a year ÷ Live births in same year) × 100,000
Women dying from pregnancy/childbirth complications per 100,000 live births. Trap: denominator base is 100,000 for MMR vs 1,000 for IMR. India's MMR ≈ 97 (latest).
CBR = (Live births in a year ÷ Mid-year Population) × 1,000
Live births per 1,000 population. Falls with development.
CDR = (Deaths in a year ÷ Mid-year Population) × 1,000
Deaths per 1,000 population. Falls with improvements in healthcare and nutrition.
TFR = average number of children a woman bears
during her reproductive years (15-49)
Replacement level fertility ≈ 2.1. India's TFR has fallen below replacement (~2.0) in recent NFHS data.
Sex Ratio = (Number of Females ÷ Number of Males) × 1,000
(per 1,000 males in NCERT convention)
India's sex ratio (Census 2011) ≈ 943 females per 1,000 males. Child Sex Ratio (0-6 years) ≈ 919 — has worsened over decades, reflecting prenatal sex selection.
Conventional — Coal, Petroleum, Natural Gas, Hydropower, Nuclear
Non-Conventional — Solar, Wind, Biogas, Tidal, Geothermal
Coal is India's largest commercial energy source (~55%). Petroleum ~30% (mostly imported — energy security concern). Renewables share rising.
Allopathy — modern Western medicine
AYUSH — Ayurveda, Yoga, Unani, Siddha, Homoeopathy
(Indian systems of medicine, separate ministry since 2014)
CBSE 1-mark MCQ. AYUSH systems are integral to Indian health infrastructure.
Launched 2005. Three-tier rural healthcare:
Sub-Centre — 1 ANM/MPW for ~5,000 population (3,000 in hilly/tribal)
Primary Health Centre — Medical Officer + ~30,000 population
Community Health Centre — Specialists + ~120,000 population
Includes Janani Suraksha Yojana (maternal health) and ASHA workers (community health activists). Aims to deliver accessible rural healthcare.
Tele-density = (Number of telephone connections ÷ Population) × 100
Indicator of communication infrastructure. India's tele-density rose dramatically post-2000 with mobile expansion.
1. Supplies resources (renewable + non-renewable)
2. Assimilates waste
3. Sustains life (biosphere services)
4. Provides aesthetic services
CBSE 4-mark workhorse. Environmental degradation occurs when waste exceeds assimilative capacity OR resource extraction exceeds regeneration.
Renewable — replenish naturally (solar, wind, water, forests)
Non-Renewable — finite stock; cannot replenish in human timescale
(coal, oil, natural gas, minerals)
Sustainable development requires shifting from non-renewable to renewable resources.
Green GDP = GDP − Depreciation of Natural Capital − Cost of Pollution
Adjusts conventional GDP for environmental damage AND resource depletion. Provides a truer picture of sustainable economic progress than raw GDP.
"Development that meets the needs of the present without compromising
the ability of future generations to meet their own needs."
Brundtland Commission (formal name: World Commission on Environment and Development). The most-cited definition in CBSE board questions.
1. Use of non-conventional energy sources (solar, wind, mini-hydel)
2. LPG / gobar gas in rural areas
3. CNG in urban areas
4. Wind power
5. Solar power via photovoltaic cells
6. Mini-hydel plants
7. Traditional knowledge & practices
8. Bio-composting / bio-pesticides / bio-pest control
CBSE 6-mark workhorse — every year. Memorise the list.
Montreal Protocol (1987) — Ozone layer protection (CFC phase-out)
Kyoto Protocol (1997) — GHG emission reduction (in force 2005)
Paris Agreement (2015) — limit warming to 1.5-2°C
Chipko Movement (1973) — India: forest conservation (Sundarlal Bahuguna)
India is a signatory to all major treaties; as a developing country, was historically not bound by mandatory emission cuts (principle of "common but differentiated responsibilities").
HDI = (Life Expectancy Index × Education Index × Income Index)^(1/3)
Geometric mean of three sub-indices (post-2010 UNDP methodology). Range: 0 to 1; higher is better. HDI was created by Mahbub-ul-Haq (Pakistan) and Amartya Sen (India) in 1990.
HDI = (LE Index + Education Index + Income Index) ÷ 3
Arithmetic mean form. Some older NCERT editions and CBSE answer keys still accept this version. Post-2010 UNDP switched to geometric mean to penalise imbalance across dimensions.
Sub-Index = (Actual Value − Minimum Value) ÷ (Maximum Value − Minimum Value)
Min-max normalisation against fixed UNDP reference values. Produces a value between 0 and 1 for each dimension.
LE Index = (LE − 20) ÷ (85 − 20)
LE = Life Expectancy at Birth in years. UNDP min = 20 years; max = 85 years.
Education Index = (MYS Index + EYS Index) ÷ 2
MYS Index = Mean Years of Schooling ÷ 15
EYS Index = Expected Years of Schooling ÷ 18
MYS = average years of schooling for adults aged 25+; EYS = years of schooling a child entering school can expect to receive.
Income Index = (ln(GNI per capita) − ln(100)) ÷ (ln(75,000) − ln(100))
Log scale reflects diminishing returns to income at high levels. UNDP min = $100, max = $75,000 (PPP, 2011 prices). CBSE 2021 specifically asked that Income Index uses logarithm — students who used raw GNI lost marks.
India Pakistan China
HDI rank/value (recent) ≈ 0.633 ≈ 0.557 ≈ 0.761
Life Expectancy ≈ 70 yrs ≈ 67 yrs ≈ 76 yrs
IMR (per 1,000) ≈ 28 ≈ 57 ≈ 7
Total Fertility Rate ≈ 2.0 ≈ 3.5 ≈ 1.7
Urbanisation ≈ 35% ≈ 37% ≈ 64%
UNDP Human Development Report values (vary by edition). China leads on most indicators, India is middle, Pakistan trails. Numbers move slightly each year — use these as approximate reference.
China: 1978 — Deng Xiaoping's Four Modernisations
Pakistan: 1988 — World Bank/IMF-driven reforms
India: 1991 — LPG reforms
China's 13-year head start over India is a key reason for its faster development. Pakistan's reforms were less comprehensive than India's.
1958 — Great Leap Forward (Mao)
1966 — Cultural Revolution (Mao)
1979 — One-Child Policy introduced
2016 — One-Child Policy relaxed to two-child
2021 — Three-child policy permitted
Standard CBSE 1-mark MCQ workhorse dates.