CBSE Class 12 Indian Economic Development Notes

Economic Development is a wider concept than economic growth and deals with the programs, activities, and policies that aim at improving the economic well-being and quality of life of a country. GeeksforGeeks has designed Notes for Class 12 Indian Economic Development in a way that provides detailed knowledge about the subject and related topics. The notes of Indian Economic Development contain 8 chapters covering important topics, like World Trade Organisation, Economic Reforms, Agriculture, Industrial Sector, Sustainable Environment, GDP, Employment, Rural Development, Human Capital and Human Development, Unemployment, Liberalisation, Privatisation, Globalisation, and many more. 

Chapter 1: Indian Economy on the Eve of Independence

The first chapter of Class 12 Indian Economic Development ‘Indian Economy on the Eve of Independence’ explains in detail the situation of the Indian Economy after Independence. The notes of this chapter consist of important topics, like the agricultural sector, industrial sector, occupational structure, foreign trade, demographic conditions, infrastructure, and different policies of British rulers that led to the exploitation of the Indian Economy. 

• Indian Economy on the Eve of Independence
• Agriculture Sector on the Eve of Independence
• Industrial Sector on the Eve of Independence
• Foreign Trade and Demographic Condition on the Eve of Independence
• Occupational Structure and Infrastructure on the Eve of Independence
• Policies of British Rulers that led to Exploitation of Indian Economy
• Impact of Partition on the Indian Economy

Chapter 2: Indian Economy (1950-1990)

The second chapter of Class 12 Indian Economic Development ‘Indian Economy (1950-1990)’ explains in detail the situation of the Indian Economy from the years 1950 to 1990, its economic system, the Five Year Plan, and other related topics. The quick links given below for the notes of this chapter consists of important topics, like Economic Planning, Agriculture, Measures to solve agricultural problems, Green Revolution, Industrial Policy Revolution, Foreign Trade, and many more. 

• Indian Economy (1950-1990): Economic System adopted by Independent India
• Economic Planning during 1950-1990
• India’s Five Year Plan
• Evaluation (Achievements and Failures) of Economic Planning till 1991
• Agriculture during 1950-1990
• Policies or Measures to Solve Agricultural Problems during 1950-1990
• Green Revolution: Impacts, Achievements and Shortcomings
• Debate Over Subsidies to Agriculture
• Industries during 1950-1990
• Industrial Policy Revolution, 1956
• Foreign Trade during 1950-1990|Trade Policy: Import Substitution
• P.C. Mahalanobis and His Contribution

Chapter 3: Liberalisation, Privatisation, and Globalisation: An Appraisal

Liberalisation, Privatisation, and Globalisation are the three types of measures initiated by the Indian Government under the New Economic Policy. The third chapter of Class 12 Indian Economic Development, ‘Liberalisation, Privatisation and Globalisation’ consists of everything required to know about LPG under the New Economic Policy. The important topics covered in the notes of this chapter are Economic Reforms, New Economic Policy, Liberalisation, Privatisation, Globalisation, World Trade Organization, and the Impacts of LPG. 

• Economic Reforms: Need and Criticism of Economic Reforms
• New Economic Policy 1991: Objectives and Components
• Liberalisation: Meaning, Economic Reforms Adopted by Indian Government and Objectives
• Privatisation: Meaning, Disinvestment, Rationale and Obstacles to Privatisation in India
• What is Globalisation? Explain advantages, disadvantages and types of Globalisation.
• World Trade Organisation (WTO): Features, Functions and Objectives
• Impact of Liberalisation, Privatisation, and Globalisation
• Concept and Features of Demonetization
• Goods and Services Tax (GST)

Chapter 4: Human Capital Formation in India

Human Capital is the stock of knowledge and skills embodied in human beings, and human capital formation means increasing the level of productivity and efficiency of human beings by providing them education and health. The fifth chapter of Class 12 Indian Economic Development, ‘Human Capital Formation in India’ covers in detail about human capital, human development and education. 

• Human Capital Formation: Meaning, Sources, Role and Importance
• Difference between Physical Capital and Human Capital
• Sources of Human Capital Formation
• Problems of Human Capital Formation
• Role of Human Capital on Economic Growth
• Difference between Human Capital and Human Development
• Human Capital Formation in India: Growth of the Education Sector in India

Chapter 5: Rural Development

Rural Development means to improve and develop the rural areas of a country. The sixth chapter of Class 12 Indian Economic Development, ‘Rural Development’ explains in detail the rural sector and its development. The important topics covered in the notes of this chapter are agricultural rural credit, agricultural marketing, organic farming, and many more. 

• Rural Development: Meaning, Significance, Process and Evaluation
• Rural Credit: Meaning, Purpose, Need, Sources and Critical Appraisal
• Sources of Rural Credit
• Agricultural Marketing: Meaning, Measures, Defects and Alternate Marketing Channels
• Agricultural Diversification: Needs, Benefits and Types
• Organic Farming: Meaning, Benefits, Challenges and Future Prospects of Organic Farming

Chapter 6: Employment: Growth, Informalisation and Other Issues

Employment is an activity under which people perform productive activities for the sake of generating income. The seventh chapter of Class 12 Indian Economic Development, ‘Employment: Growth, Informalisation and Other Issues’ explains in detail the concept of employment and related topics. The notes provided for this chapter by the quick links mentioned below covers important topics like self-employed workers, hired workers, growth of employment, changing structure of employment and unemployment. 

• Employment: Meaning, Importance, Basic Terms of Employment and Participation of people in Employment
• Forms of Employment: Self and Wage Employment
• Distribution of Employment
• Growth and Changing Structure of Employment
• Informalisation of Indian Workforce
• Difference between Formal Sector and Informal Sector
• Unemployment: Meaning, Types, Causes, Effects and Remedial Measures
• Unemployment and its Types

Chapter 7: Environment and Sustainable Development

Environment and Sustainable Development is the ninth chapter of Class 12 Indian Economic Development that explains  the Environment, Sustainable Development, Degradation, Causes of Environmental Degradation and Impact of Environmental Degradation. 

• Environment: Meaning, Functions, and Reasons for Environmental Crisis
• Environmental Degradation in India
• Causes and Impact of Environmental Degradation
• What are the measures to control Environmental Degradation ?
• Sustainable Development: Meaning, Objectives and Strategies

Chapter 8: Comparative Development Experiences of India and its Neighbours

The last chapter of Class 12 Indian Economic Development, ‘Comparative Development Experiences of India and its Neighbours’ explains the demographic indicators, development strategies, developmental path of India, and many more. 

• Great Leap Forward (GLF) | Meaning, Components and Effects
• Comparative Study between India, China, and Pakistan
• Appraisal of Development Strategies of India, China, and Pakistan

Chapters not in Current CBSE Syllabus (2024-2025)

Chapter: Poverty

A situation in which a human being is not even able to fulfill his/her basic requirements, including food, clothing, education, health, and housing is known as poverty. The below links talks in detail about poverty and the situation of poverty in India. The important topics covered are poverty line, dimensions of poverty in India, impact of poverty, causes of poverty, and Anti-Poverty Programmes adopted by the Government of India and its shortfalls. 

• Poverty: Meaning, Characteristics, and Measures
• Difference between Relative Poverty and Absolute Poverty
• Poverty Line: Meaning, Determination, Types and Criticism
• Below Poverty Line | Full Form of BPL, History and Benefits
• Trends and Dimensions of Poverty in India
• Impact and Causes of Poverty
• What are the Government Approach to remove Poverty?
• Poverty Alleviation Programmes in India
• Measures to Remove Poverty
• Anti-Poverty Measures

Chapter: Infrastructure

Infrastructure is the type of structure which is built to provide services in the economy. The below links explains the concept of infrastructure and related concepts. The important topics covered include need for infrastructure, importance of infrastructure, types of infrastructure, and many more. 

• Infrastructure: Meaning, Characteristics, Importance and Types
• Energy Infrastructure 
• Difference between Commercial and Non-commercial Sources of Energy
• Conventional vs Non-Conventional Sources of Energy
• Health Infrastructure in India
• Power Infrastructure: Sources, Challenges and Measures to meet Power Crisis
• Difference between Economic Infrastructure and Social Infrastructure