Economics (Social Science 087) · Class X · Chapter-wise Board Questions

(D) Construction of a canal

(B) Weight in kilogram ÷ Square of the Height in meters

(B) Uneven development

(A) Proportion of literate population in 7 and above age group.

(B) Per Capita income, Education status and Health status

(C) 82

(D) United Nations Development Program

(A) 7 years

(C) Odisha, Bihar, Haryana, Kerala

(B) High Per Capita Income

(C) S

If the examinee marks any option: A,B,C and D, mark to be awarded.

(A) Higher support price for crops.

(A) 8200

(A) Human Development Report

(B) Percentage

(A) 12

(D) Ground water

(A) One

(B) India

(D) Pakistan

(B) 80 percent

(C) United Nations Development Programme

(a) A

(a) Per Capita Income

(c) Only (i), (ii) and (iv) are correct.

(D) Only I, II and IV are correct.

(C) India

(D) World Bank

(C) Only I, II and IV are correct.

(C) Both economic development and environmental sustainability are essential.

(A) 22%

(c) 32,500/-

(d) Per capita Income

(c) II and III are correct.

(B)7

(A)Rs.4,000

(C) Assessment of Body Composition

C - Gross Domestic Product

B – The proportion of literate population in the seven years and above

A – Country ‘A’

(B) Education, Health and Per Capita Income

(D) Kerala

(B) Bangladesh

(A) Rs. 25, 000

(B) Income

(D) Sri Lanka

(C) India

(A) I & II

(A) 39

(A) Better wages

(D) 10060

(D) I and II

(A) World Bank

(A) Rs 5000

(d)-The total income divided by the number of individuals in a population

(b) To get much freedom as her brother gets

C - It gives a basic idea of economic well-being but hides the income inequality, cost of living, or access to essential services.

A. People living in different conditions may prioritise different needs and goals

• Different people have different needs and aspirations.
• The developmental goal of an industrialist would be to get cheap and continuous energy supply and thus would support the building of large dams. But for the people living in the command area would not support that idea because it would disrupt their live and submerge their land.
• Any other relevant point.

Any two points to be explained.

• Resources are limited and must be preserved for future generation.
• Sustainable development is necessary for maintaining eco-system.
• To prevent environmental degradation, sustainable development is necessary.
• Any other relevant point

Any two points to be explained.

• Public facilities are provided by the government.
• Increased investment by the government in health will improve the wellbeing of the citizens.
• Providing quality education, (particularly elementary education) will help to develop human resources.
• Providing safe drinking water will provide good health.
• Housing facilities for the poor will improve basic living conditions.
• Providing safe and good transport facilities will contribute to improved economic activities.
• Any other relevant point.

Any two points to be explained.

• Improvement in Life Expectancy due to improved health facilities.
• Enhanced education facilities have led to improved literacy rate.
• Public Distribution System has ensured food availability for poor people.
• Reduced infant mortality rate due to improved education and medical facilities.
• Any other relevant point

(Any two points to be explained)

• Sustainable development is environment friendly economic development which advocates for conserving resources for future generations.
• Development can be sustained in any economy by using renewable resources such as hydel energy, wind energy and solar energy.
• Non-renewable resources are those which get exhausted after years of use. We have a fixed stock of these on earth which cannot be replenished. So their use should be reduced.
• Renewable resources are replenished by nature. However, even these resources may be overused. For example, in case of groundwater, if we use more than what is being replenished by rain then we would be overusing these resources. So they also should be used wisely.
• Use of public transport, conservation of resources, reducing, recycling and reusing of resources.
• Any other relevant point.

Any two arguments to be explained.

• The World Bank uses GDP and per capita income to measure development.
• The United Nations Development Programme (UNDP) uses the criterion of Human Development Index (HDI) to measure the development of countries based on the educational levels of the people, their health status and per capital income.
• Any other relevant points.

Any two points to be explained.

It is true that different persons have different developmental goal.

• Each person seeks different things that are important for him/her.
• The economic, social, and cultural needs of every person are different and so the goals are different.
• Sense of freedom and security are important for few and for others income is the most important aspect.
• Sometimes two persons or group of persons may seek thing which are conflicting.
• Any other examples can also be considered.

To be assessed as a whole.

• Sustainable development is environment friendly economic development.
• It is essential to conserve resources for future generation.
• Resources are to be utilized in consonance with their availability.
• Present requirements are to be managed in sustainable and judicious manner.
• Scientists, economists, philosophers and other social scientists are working together for sustainable development.
• Groundwater is an example of renewable resources. These resources are replenished by nature as in the case of crops and plants.
• Our future is linked with essential resources are getting depleted at a fast rate.
• Any other relevant point.

Any three points to be explained.

Body Mass Index (1 mark)

Body Mass Index is the scale used by nutrition scientists to find out if we are properly nourished or not.

Method of calculation (2 marks)

• It is calculated through the formula: Weight (in kgs) ÷ Square of height (in metres).
• If the height of the person is in centimetres, convert it into metres and divide the weight (in kgs) with the square of height(m²).
• Any other relevant point

• Present model of development has damaged ecosystem and has polluted natural resources like air, water, land, soil etc.
• Depletion of natural resources can threaten the availability for future generations.
• Even renewable resources need to be used judiciously.
• Rapid industrialisation and greenhouse gas emission has caused global warming.
• Deforestation is causing extinction of many species of plants and animals.
• Any other relevant point.

(Any three points to be analysed.)

• Aspirations and aims are different for all as development or progress means different to different persons.
• For example- A landless rural labourer aspires to have more days of work and better wages; local school for quality education for their children; no social discrimination and opportunity to become leaders in the village.
• Prosperous farmers from Punjab aspire for a high family income through higher support prices for their crops and through hardworking and cheap labourers so that they are able to able to settle their children abroad.
• A girl from a rich urban family gets as much freedom as her brother and is able to decide what she wants to do in life. She is able to pursue her studies abroad.
• Two persons or groups of persons may seek things which are conflicting. A girl expects as much freedom and opportunity as her brother, and that he also shares in the household work. Her brother may not like this.
• Similarly, to get more electricity, industrialists may want more dams. But this may submerge the land and disrupt the lives of people who are displaced – such as tribals. They might resent this and may prefer small check dams or tanks to irrigate their land.
• Sometimes, what maybe development for one may not be development for the other. It may even be destructive for the other.
• Any other relevant point.

Any three points to be explained.

• Sustainability is important for development because it results in protecting the people against pollution ensuring their quality of life and health.
• Conserving the environment which is necessary for development.
• Development can be sustained in any economy by using renewable resources such as groundwater, wind energy and solar energy.
• Groundwater is an example of renewable resource. These resources are replenished by nature as in the case of crops and plants. However, even these resources may be overused. For example, in the case of groundwater, if we use more than what is being replenished by rain then we would be overusing this resource.
• Non-renewable resources are those which will get exhausted after a few years of use. We have a fixed stock on earth which cannot be replenished. Over usage of resources need to be checked
• Conservation of resources for the future generations.
• We do discover new resources that we did not know earlier. New sources in this way add to the stock. However, over time, even this will get depleted/used.
• Any other relevant point.

Any three points to be explained.

• Different people may have different perspectives of development which might be in contrast to each other.
• Each one seeks different things. They seek things that are most important for them.
• To get more electricity industrialists may want more dams.
• This may submerge the land and disrupt the lives of people who are displaced, such as tribes.
• They might reason this and may prefer small check dams or tanks to irrigate their land.
• Any other relevant point.

(Any three examples to be explained.)

• We would like the level of development to go up further.
• Sustainability is environment friendly economic development- this is obviously desirable.
• Non- renewable sources will get exhausted after a few years.
• We need to look for alternative sustainable sources like non-conventional sources like solar, wind and tidal energy
• Reduce, Reuse, and Recycle resources.
• Use resources judiciously.
• Any other relevant point.

Any three examples to be explained.

• Social and cultural needs of every person are different and so are goals.
• A girl expects as much freedom and opportunity as her brother and that he also shares in the household work but her brother may not like this.
• Industrialists may want more dams to get more electricity.
• The people around those water bodies -like tribals, may prefer small check dams or tanks to irrigate their lands.
• Any other relevant point.

(Any three points to be explained.)

• Conservation of environment is necessary for development.
• Development can be sustained in any economy by using renewable resources such as groundwater, wind energy and solar energy.
• We have a fixed stock of resources on earth which cannot be replenished so need to conserve it for sustainable development.
• Conservation of resources is not nation specific issue
• Our future sustenance is linked with the conservation of resources.
• Any other relevant point.

Any three points to be explained.

• Sustainability is important for development because it results in protecting the people against pollution ensuring their quality of life and health.
• Conserving the environment which is necessary for development.
• Development can be sustained in any economy by using renewable resources such as groundwater, wind energy and solar energy.
• Groundwater is an example of renewable resources. These resources are replenished by nature as in the case of crops and plants. However, even these resources may be overused. For example, in the case of groundwater, if we use more than what is being replenished by rain then we would be overusing this resource.
• Non-renewable resources are those which will get exhausted after years of use. We have a fixed stock on earth which cannot be replenished. Over usage of resources need to be checked.
• We do discover new resources that we did not know of earlier. New sources in this way add to the stock. However, over time, even this will get depleted/used.
• Any other relevant point.

(Any three points to be explained)

• Healthcare and Public Health: Accessible and quality public healthcare, is fundamental for maintaining, a productive and healthy population. It reduces mortality rates, ensures the well-being of the workforce, and allows individuals to contribute meaningfully to the economy. Inadequate healthcare can result in a higher burden of disease, lower life expectancy, and economic inefficiencies.
• Education and Skill Development: Public education systems are essential for providing equal learning opportunities to all citizens, regardless of socioeconomic status. A well-educated population leads to increased literacy rates, skill development, and innovation, all of which are crucial for economic growth, reducing inequality, and fostering social cohesion.
• Sanitation and Clean Water: Proper sanitation and access to clean water are vital for maintaining public health and preventing diseases such as cholera and dysentery. These services significantly improve life expectancy, reduce healthcare costs, and increase productivity, especially in rural or underserved areas.
• Infrastructure Development: Public infrastructure, including roads, transportation, and energy, supports the functioning of markets, businesses, and industries. It enhances connectivity, stimulates economic activities, and improves the quality of life for individuals by providing easy access to essential goods and services.

Or any other relevant point(s) - Any two

36.1

• Sustainable development means ‘development should take place without damaging the environment and development in the present should not compromise with the needs of the future generations.
• Any other relevant point

(Any one point to be explained.)

36.2

• Recent evidence suggests that the groundwater is under serious threat of overuse in many parts of the country.
• About 300 districts have reported a water level decline of over 4 meters during the past 20 years.
• Any other relevant point.

(Any one point to be described.)

36.3

• Change in crop pattern.
• Use of newer techniques of irrigation like sprinkler, drip irrigation etc.
• Any other relevant point.

(Any two point to be mentioned.)

(a)

• Sustainability refers to that kind of economic development that should take place without damaging the environment and development in the present should not compromise with the need of the future generations.
• Ground water is an example of renewable resources. These resources are replenished by nature.
• The over use ground water is becoming a serious threat in many parts of the country due to population growth and agricultural practices.
• Excessive use of ground water for irrigation can deplete ground water level.
• A lack of effective policies and regulation can lead to unsustainable ground water use.
• About 300 districts have reported a water level decline of over 4 meters during the past 20 years.
• Nearly one third of the country is over using their ground water reserves.
• In another 25 years, 60 percent of the country would be doing the same if the present way of using this resource continues.
• Ground water overuse is particularly found in the agriculturally prosperous regions of Punjab and Western Uttar Pradesh etc.
• Judicious use of water resources.
• Control over dumping of excessive and toxic waste on land to prevent pollution of ground water.
• Any other relevant point.

Any five points to be evaluated.

OR

(b)

• Each one of us seeks different things in our life.
• People seek things that are most important for them, which can fulfill their aspirations or desires.
• At times, two persons or group of persons may seek things which are conflicting.
• For example, a girl expects as much freedom and opportunities as her brother and that he also shares in the household work.
• What may be the development for one may not be the development of others.
• For example, an industrialist may want more dams for electricity but for the people who are displaced might resent this.
• Any other relevant point.

Any five points to be evaluated.

(a)

• For comparing countries, their income is considered to be one of the most important attributes.
• Countries with higher income are more developed than others with less income.
• This is based on the understanding that more income means more of all things that human beings need.
• Whatever people like, and should have, they will be able to get with greater income. So, greater income itself is considered to be one important goal.
• Any other relevant point.

(Any two points to be explained.)

Classification done by the World Bank-

According to the World Development Reports, brought out by the World Bank (in 2019),

• Countries with per capita income of US$ 49,300 per annum and above, are called high income or rich countries.
• Countries with per capita income between US$ 2500 and US$ 49,300 are called middle-income countries.
• Countries with per capita income of US$ 2500 or less are called low-income countries.
• India comes in the category of middle-income countries because its per capita income in 2019 was just US$ 6700 per annum.
• Any other relevant point.

(Any three points to be mentioned.)

OR

(b)

• Groundwater is an example of renewable resource. This resource is replenished by nature.
• Even this resource may be overused by excessive irrigation, industries etc.
• In the case of groundwater, if we use more than what is being replenished by rain then we would be overusing this resource.
• Any other relevant point

(Any two points to be explained.)

Examples in the context of sustainability:

• Recent evidence suggests that the groundwater is under serious threat of overuse in many parts of the country.
• Many districts have reported steep decline in water level.
• Nearly one-third of the country is overusing their groundwater reserves.
• In the coming years, if the present way of using this resource continues, most parts of the country will face a serious water crisis.
• Groundwater overuse is particularly found in the agriculturally prosperous regions of Punjab and Western U.P., hard rock plateau areas of central and south India, some coastal areas and the rapidly growing urban settlements.
• Any other relevant point.

(Any three points to be explained.)

(a) Social Goals

• Quality education and skill development for all.
• Accessible and affordable healthcare for everyone.
• Women empowerment through equal opportunities and leadership roles.
• Ensuring dignity, equity, and social justice for all individuals.
• Promoting social harmony in a diverse society.
• Strengthening coordination and cooperation between majority and minority communities.
• Any other relevant point

Any two points to be analyzed.

Economic Goals

• Increasing per capita income to improve the standard of living.
• Enhancing sectoral development for balanced economic growth.
• Driving industrial growth to boost employment and innovation.
• Strengthening infrastructure to support economic expansion.
• Modernizing agriculture for higher productivity and sustainability.
• Promoting renewable energy.
• Encouraging self-reliance through local manufacturing.
• Ensuring sustainable economic growth with environmental responsibility.
• Expanding global trade.
• Any other relevant point.

Any three points to be analyzed.

OR

(b)

• Sustainable development refers to meeting the needs of the present without compromising the needs of the future generations.
• With growing population and growing demands for resources sustainability is becoming challenging in the present time.
• Consequences of environmental degradation do not respect national or state boundaries. Sustainability is a global issue and requires global co-operation.
• Promoting sustainable industrialization can ensure resource efficiency and long-term economic growth.
• Eco-friendly technologies drive economic growth while protecting the environment. More government policy support can help ensure sustainability.
• Lifestyle changes are leading to overconsumption. Public awareness and responsible consumption can contribute to long-term sustainability.
• Advancing alternative energy like solar and wind power reduces dependence on fossil fuels.
• Strengthening environmental policies and regulations helps control pollution and preserve ecosystems.
• Encouraging afforestation and biodiversity conservation supports ecological balance.
• Investing in sustainable agriculture ensures food security while conserving natural resources.
• Water conservation initiatives and efficient irrigation techniques enhance water security.
• Any other relevant point

Any five points to be analyzed.

(a)

• Since the second half of twentieth century several scientists have been warning us about present type usage of resources indiscriminately, and levels of development are not sustainable.
• Sustainable development refers to economic development without any damage to the environment.
• Underground water is an example of a renewable resource which is overused.
• It should be used judiciously to maintain the water levels.
• Urbanization and industrialization have depleted water reserves in a major way.
• We need to sustain development for future generations as our future is linked together.
• Non-renewable resources like coal, petroleum should be used in a judicious manner so as to decrease environmental degradation.
• For example, the poor air quality in one town or country will adversely affect the quality of air in the neighbouring city or country.
• Global warming and climate change are a consequence of not maintaining our resources judiciously and is experienced by people across national and state boundaries.
• Any other relevant point.

Any Five points to be Examined.

OR

(b)

• With passing days, we need to focus more on the issue of sustainability on a serious note as our valuable resources are depleting day by day at a faster pace.
• Sustainable development refers to economic development without any damage to the environment.
• For example, Groundwater is an example of renewable resource which is overused in India.
• Recent evidences suggests that the groundwater in under serious threat of overuse in many parts of the country.
• In recent years many districts have reported a decline in water level.
• Currently, about one-third of the country is over-extracting from underground water reserves.
• If the present way of using this resource continues it will be overused by many parts of the country.
• Non-renewable resources are also overused and some of them are about to get exhausted.
• Resources should be made available in decent quantity for the upcoming generations.
• The question of development or progress is perennial.
• Any other relevant point.

Any Five points to be Examined.

38A.

• Kerala clearly performs the best on both indicators (highest literacy and lowest infant mortality), whereas Bihar performs the weakest, and Haryana lies in between with moderate literacy but a high infant mortality rate.

Inferences that may be drawn:

• Higher literacy seems linked with better health outcomes, since Kerala’s high literacy (94%) coincides with a very low infant mortality rate (6). States with lower literacy levels tend to face weaker health results, shown by Bihar’s low literacy (62%) and high infant mortality rate (27), indicating limited access to quality education and healthcare.
• Kerala’s performance suggests long-term social investment pays off, as consistent focus on education and public health has resulted in both high literacy and very low infant mortality.
• The wide gaps among the three states show that development in India is uneven, meaning different states progress at different speeds depending on their policies, governance quality, and resource allocation.

(or any other relevant point) (any 2)

Suggestions:

• Haryana should improve maternal and child healthcare services to reduce its high infant mortality rate while continuing to strengthen education quality.
• Bihar needs to prioritise both expanding literacy and improving basic health facilities, whereas Kerala should aim to maintain and further strengthen its existing education and healthcare systems.

(Or any other relevant point) – (any 2)

OR

38B. Kerala is likely to have a better human development standard than Haryana and Bihar.

Justification – Two Reasons:

• Low Infant Mortality Rate (IMR 6): Kerala has the lowest number of children dying before age one, showing strong healthcare and better life expectancy.
• High Literacy Rate (94%) and Net Attendance Ratio (94%): A high percentage of people can read and write, and most children attend secondary school, reflecting good education and social development.

(Or any other relevant point) – (any 2)

Importance of Paying Attention to These Indicators:

• IMR: Reducing infant deaths ensures healthier children and contributes to a stronger, more productive population.
• Literacy Rate & Net Attendance Ratio: Education empowers people, improves awareness of health, employment, and civic responsibilities, leading to overall development of the state.

(Or any other relevant point) – (any 2)

Note: One mark must be awarded to students who have attempted the question.

(A) Both (A) and (R) are true and (R) is the correct explanation of (A)

(D) 2,34,000 crores

(C) a-(iii), b-(iv), c-(ii), d-(i)

(D) Assertion (A) is false, but Reason (R) is true.

(D) Indian Railways

(B) Individually controlled.

(B) Public Sector

(A) Private sector

(A) Primary

(D) Tertiary

(D) Gross Domestic Production

(D) Secondary

(D) 210

(D) Private Sector

(D) Bharat Heavy Electricals Limited

(d) Doctor, Teacher, Lawyer

(c) Nature of production activities

(C) 320

(C) Tertiary

(D) Government provides unemployment allowance to the beneficiaries in case of failure to provide employment.

(D) Indian Postal Service

(B) Forestry, Trading, Dairy

(A) Nature of employment activities

(d) A teacher taking classes in a government school.

(C)Tertiary Sector-Astronaut

(C)Unorganized Sector

B – Nature of activities

(C) Tertiary

(C) Tertiary

(A) Primary

(A) Primary

(A) Primary- Mining

(A) National Statistical Office (NSO)

(A) Primary sector – Fishermen

(A) Organized Sector

(B) Secondary Product

(D) There are rules and regulations but not followed.

(C) Tertiary

(A) Primary Sector – Flower Cultivator

(D) Primary sector specially unorganized

(C) Organized sector

(A) Planning Commission

(C) Tertiary sector – Bank

(D) A daily wage labourer working under a contractor

(b)-National Rural Employment Guarantee Act

(b)- Workers are engaged in the unorganized sector

A - More workers are employed than actually required

B - A factory makes shoes and uses raw materials like leather to create the product, relying on transport and retail stores to distribute the shoes.

C. 1: Farming/mining, 2: Relies on raw materials from primary sector

A. ₹200 crore, tertiary sector

• Disguised unemployment means that there are more people on the job than is necessary.
• Even if you move a few people out, production will not be affected.
• This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed.
• The people are apparently working but all of them are made to work less than their potential.
• Each one is doing some work, but no one is fully employed.
• The labour effort gets divided.
• It is mostly found in agricultural sector.
• This type of unemployment can also be found in secondary and tertiary sectors of the economy.
• Any other relevant point.

Any one point to be explained with example.

• The value of final goods already includes the value of all the intermediate goods.
• To avoid double counting.
• It reflects the real growth of Gross Domestic Product (GDP).
• Any other relevant point.

Any two points to be explained.

Any other relevant point.

Any two points of differences to be explained.

• To develop water harvesting
• Development of irrigation facilities
• Development of Self-Help Group
• Development of animal husbandry
• Development of infrastructural facilities.
• Development of cottage industries
• Any other relevant point

Any two points to be explained.

• Improved irrigation facilities so that farmers harvest two or three crops in one year,thus more people can be employed.
• Provide better roads and improve transportation and storage, which will benefit farmers so that people will be employed in these sectors.
• Honey collection centers or vegetable and fruit processing units should be set up.
• More cottage industries and services should be promoted in rural areas with soft loans and marketing support.
• More infrastructural and manufacturing facilities
• Any other relevant point .

(Any two points to be explained ) 5X3=15

• By introducing mega projects  new dams are constructed and canals are dug to irrigate many farms.
• By introducing tertiary facilities in an area.
• By identifying and promoting local industries and services.
• In villages near forest areas, we can start honey collection centres where farmers can come and sell wild honey.
• By setting up industries that process vegetables and agricultural produce like potato, sweet potato, rice, wheat, tomato, fruits, which can be sold in outside markets.
• By promoting tourism, or regional craft industry, or new services like IT.
• Any other relevant point.

(Any two points to be explained)

• Tertiary sector is a service sector which provides services like banking, communication, transportation, personal services such as washerman etc.
• The activities of tertiary sector help in the development of the primary and the secondary sectors.
• These activities provide aid or a support for the production process.
• This sector develops with the income levels
• New services in this sector such as IT related have gained importance with the development.
• Any other relevant point.

Any two points to be analyzed.

• There should be implementation of fair and minimum wages law for their work done.
• There should be provision of health insurance, pension and maternity benefits.
• Employers should provide safe working conditions with proper equipment.
• There should be regular inspections to ensure that labour laws are followed.
• Workers should have access to affordable medical treatment and emergency aid.
• Workers should be educated and made aware about the labour rights/ laws.
• Workers should be provided with skill development and training programmes.
• Legal action should be taken against employers in case of exploitation of workers.
• Any other relevant point.

Any three points to be suggested.

• Identification and promotion of local industries.
• Setting up Grameen Banks and Cooperatives.
• Supporting Self Help Groups (SHGs).
• More schemes like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA/VB-G Ram G) should be introduced.
• Development of infrastructure like schools, hospitals etc.
• Promotion of local tourism.
• Any other relevant point.

Any three points to be explained.

• In the public sector the government owns most of the assets and provides all the services while in the private sector the ownership of assets and delivery of services is in the hands of private individuals and companies.
• Railways, Post office are examples of public sector whereas companies like Tata Iron and Steel Company Limited (TISCO) or Reliance Industries Limited are examples of private sector.
• The motive of the public sector is not just to earn profits whereas activities in the private sector are guided by the motive to earn profit.
• Government raises money through taxes to meet expenses whereas private sector organizes its own funds.
• Public sector charges less for their services whereas private sector charges much more.
• Any other relevant point.

Any three points to be explained.

• In agriculture more than required people are employed. This means even if a few people are moved out, production will not be affected. In other words, workers in the agricultural sector are underemployed.
• All the members of a family work in the plot throughout the year. They have nowhere else to go for work. So, everyone is working, none remains idle, but in actual fact, their labour effort gets divided.
• Each one is doing some work but no one is fully employed. This is the situation of underemployment, where people are apparently working but all of them are made to work less than their potential.
• This kind of underemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed. Hence it is also called disguised unemployment.
• By providing additional opportunities like opening cold storage, honey collection centers, vegetable processing industries etc. extra workers can be gainfully employed.
• Any other relevant point.

(Any three points to be analysed.)

• Provides raw materials to the secondary sector.
• Provides employment.
• Provides food security.
• Promotes trade.(national and international)
• Brings foreign exchange.
• Any other relevant point.

Any three points to be analysed.

• There should be improvement in education sector.
• There should be improvement in healthcare sector.
• Regional craft industry should be promoted.
• More focus should be given on sectors like IT.
• Improvement and promotion of tourism sector.
• Development of infrastructure like roads, highways, buildings, schools, etc.
• Few sectors require proper planning and support from the government.
• Any other relevant point.

Any three points to be suggested.

A.

• The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year and the sum of production in the three sectors gives what is called the Gross Domestic Product of a country.

B.

• It is an indicator of a country’s standard of living.
• It shows how healthy the economy of a particular country is .
• Any other relevant point.

To be assessed as a whole.

• Greater the development of the primary and secondary sectors, more would be the demand for such services.
• Development of agriculture and industry leads to the development of services such as transport, trade, storage etc.
• As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc.
• In any country several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc. are required. Large number of people can be employed in this sector.
• Many new services based on information and communication technology have become important and have increased the scope of employment in this sector.
• Any other relevant point.

(Any three points to be explained)

• Tertiary sector is the third category of activities after primary and secondary sectors.
• The activities of tertiary sector help in the development of the primary and tertiary sector.
• These activities by themselves do not produce a good but they are an aid or a support for the production process.
• Tertiary sector provides services like transport, banking, communication, storage, trade etc.
• Since these activities generate services rather than goods, the tertiary sector is also called service sector. It includes some essential services that may not directly help in production of goods. For traders and doctors etc.
• Tertiary sector provides employment to a large number of people.
• The share of tertiary sector in GDP is the highest in our country.
• Tertiary sector also helps in bringing the much-required foreign reserves.
• Any other relevant point.

Any three examples to be explained.

• In the public sector govt. owns most of the assets and provides all the services.
• It promotes rapid economic development through infrastructure creation.
• It constructs roads, bridges, railway, harbors, generates electricity etc.
• Providing irrigation through dams etc.
• Fair Price Ration shop.
• It creates employment opportunities.
• Attention to aspect of human development such as availability of safe drinking water.
• Housing facilities for the poor.
• The Public sector plays a vital role in contributing to the Human Development Index via its functioning in health and education services.
• Any other relevant point.

Any three examples to be examined.

• In primary sector, there are many activities that are undertaken directly using natural resources. While secondary sector covers activities in which natural products are changed into other forms.
• Primary sector depends mainly but not entirely on natural factors like rainfall , sunshine and climate while secondary sector is based on industrial activity.
• Cotton farming is primary activity while cotton textile is secondary activity .
• Primary sector contributes to the first process of production while secondary sector adds value to the primary sector product.
• Any other relevant point.

Any three points to be explained.

• The tertiary sector provides basic services like public transportation, medical care, electricity, banking, post office, etc
• This sector creates employment even for uneducated and unskilled workers.
• The development of agriculture and industry leads to the development of services such as transport trade etc.
• As income levels rise the demand of tertiary sector also get enhanced.
• Over the past decade or so certain new services such as those based on information technology have become important and essential.
• Any other relevant point.

Any three points to be explained.

• Tertiary Sector is a service sector which includes Transport Storage, Communication, Banking, Trade etc.
• Tertiary sector helps in the development of other two sectors.
• With the development of primary and secondary sectors the demand for service will increase day by day.
• The demands for tourism, shopping, private schools, private hospitals, etc. are increasing which are visible in big cities.
• Rapid growth of service sector also benefitted from external demand such as software industry, call centre services etc.
• Liberalisation and globalisation have provided an environment for faster growth of tertiary services.
• Any other relevant point.

Any three points to be explained.

OR

• Large number of workers in the unorganized sectors are paid very low salary and often get exploited.
• Jobs in these sectors are not secure.
• Benefits to workers( Such as Medical leave, gratuity etc.) are not given regularly in the unorganized sector.
• There is need to save them from social discrimination.
• The casual workers in both rural and urban areas need to be protected.
• Protection and support to the unorganised sector workers is thus necessary for both economic and social development.
• Most of the enterprises in unorganized sector adopt strategies to evade taxes and refuse to follow laws.
• Any other relevant point

Any three points to be explained.

• . Public Sector and Private Sector.
• Public Sector: The government owns most of the assets and provides all the services. Ex : -Railway or Post office are examples of Public Sector.
• Private Sector- Ownership of assets and delivery of services is in the hands of private individuals or companies. Ex : Companies like Tata Iron and Steel Company Limited (TISCO), Reliance Industries Limited (RIL) are privately owned companies.

(Any other example could be considered)

A. Gross Domestic Product (GDP) –

• The value of final goods and services produced in each sector during a particular year provides the total production of the sector for that year. / The sum of production in the three sectors gives what is called the Gross Domestic Product (GDP) of a country. (1)

B. Final goods and services included in the calculation of the GDP

• Only final goods and services are counted to avoid multiple counting.
• Since their prices cover the cost of all the intermediate products and services that were used to produce the final output.
• Another way to calculate GDP is to measure the value added to each product or service at every stage of its production.
• Any other relevant point.

Any two points to be explained. (2x1=2)

This is called disguised unemployment.

Causes of Disguised Unemployment in India

• Excess labour in agriculture
• Lack of alternative employment opportunities
• Poverty and population pressure
• Lack of skills and training required for other kinds of work

Or any other relevant point (any 1)

Solutions -

• Diversification of activities: Introduce other rural jobs like small-scale industries, dairy, and poultry farming.
• Land reforms and consolidation: Combine small plots to make farming more efficient, so fewer workers are underemployed.
• Skill development and education: Train people for non-agricultural jobs in towns or industries to reduce surplus labour in farms.
• Or any other relevant point (any 2)

36.1

• Regular term of employment.
• Fixed working hours.
• People have assured work.
• Any other relevant point.

36.2

• In the organised sector, employees get paid leaves.
• In this sector, employees get minimum wages.
• Any other relevant point.

36.3

• For people who are engaged in self-employment to comply with the rules and regulations set by the government.
• It helped the government to create a data base.
• Any other relevant points.

(a)

• Over the forty years, while production in all three sectors has increased it has increased most in tertiary sector.
• The contribution of tertiary sector as per Gross Value Added (GVA) has increased manifold.
• Services like educational institution, hospital, post offices etc has been set up which contributes to the national economy.
• Expansion of roadways, railways, setting up of cold storages, banking facilities has also contributed to the expansion of Primary and Secondary sector activities.
• It also provides employment to large workforce.
• Information and Communication technology has expanded the scope of employment and production.
• Any other relevant point.

Any five points to be explained.

OR

(b)

• Low wages
• Irregular income.
• Lack of job security.
• Poor working conditions.
• Absence of social security.
• Exploitation of employees.
• Any other relevant point.

Any five points to be explained.

(a)

• In public sector most of the assets are government owned while in private sector they are owned by the Individual or enterprises.
• Activities in the private sector are guided by the motive to earn profits while the public sector focuses on welfare of people.
• The activities which require higher spending may not be undertaken by the private sector but by the public sector.
• Development of infrastructure is managed by the public sector as they have access to huge funds which the private sector lacks.
• The Private sector will not provide several things needed by the society as a whole at a reasonable cost while public sector will provide
• There are a large number of activities which are the primary responsibility of the government so public sector has to undertake them whereas private sector is not bound.
• Reliance and Tata Iron and Steel are some examples of Private sector industries while BHEL, Bharat Electronics are some of the Public Sector industries.
• Any other relevant point

Any five points to be explained

OR

(b)

• Organised sector covers those enterprises or places of work where the terms of employment are regular whereas in unorganised sector terms of employment are not regular.
• Organised Sectors are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc while unorganised sectors do not follow the rules strictly.
• Organised sector follows formal processes and procedures while unorganised sector does not.
• Workers in the organised sector enjoy security of employment while there is no such security in unorganised sector
• There are fixed working hours in organised sector and if employees work extra hours they are paid for it. Whereas there are no fixed working hours in unorganised sector.
• Workers get medical benefits in organised sector while such facility may not be available in unorganised sector.
• Any other relevant point

Any five points to be explained.

• The central government in India made a law implementing the Right to Work.
• It is called Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA 2005). Now it is known as Guarantee for Rozgar and Ajeevika to Mission (Gramin) or VB-GRAM G ACT,2025.
• Under MGNREGA 2005, all those who are able to, and are in need of, work in rural areas are guaranteed 100 days of employment in a year by the government.
• It is the duty of the government to provide employment, otherwise it will give unemployment allowances to the people.
• The types of work that would in future help to increase the production from land will be given preference under the Act.
• Under the Viksit Bharat Guarantee for Rural Employment and Livelihood Mission Act, 2025 (VB G RAM G Act, 2025), a guarantee of 125 days of employment is provided.
• Agricultural development has been done to generate employment.
• Any other relevant point.

Any five points to be described.

OR

• Over the forty-years of period, production grew in all three sectors, but the tertiary sector experienced the highest growth.
• The tertiary sector has emerged as the largest sector in India replacing the primary sector.
• In any country several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defence, transport, banks, insurance companies, etc. are required. These can be considered as basic services.
• In a developing country the government has to take responsibility for the provision of these services.
• As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc.
• Certain new services such as those based on information and communication technology have become important and essential. The production of these services has been rising rapidly.
• Any other relevant point.

Any five points to be described.

(Any five points of difference to be explained.)

OR

(Any five points to be explained with example.)

• The activities of tertiary sector help in the development of the primary and secondary sectors.
• Tertiary activities do not produce goods but they are a support for the production process.
• The tertiary sector is also called the service sector.
• For example, goods that are produced in the primary or secondary sector would need to be transported by trucks or trains to be sold in wholesale and retail shops or to be stored in godowns.
• Communication with others over telephone or sending letters or borrowing money from banks (banking) to help production and trade.
• Transport, storage, communication, banking, trade are some examples of tertiary activities and generate services rather than goods.
• Service sector also includes some essential services- for example, teachers, doctors, and personal services such as washer men, barbers, cobblers, lawyers, and people who provide administrative and accounting works.
• In recent times, certain new services based on information technology such as internet cafe, ATM booths, call centres, software companies etc have become important.
• This way, this sector generates employment opportunities.
• It contributes to the GDP of the nation and generates revenue. In fact, service sector has emerged as the largest contributor to the Indian GDP for many years.
• This sector improves the quality of life.
• Any other relevant point.

Any five points to be described.

OR

• Organised sector covers enterprises or places of work where the terms of employment are regular and therefore, people have assured work.
• They are registered by the government and have to follow its rules and regulations which are given in various laws such as the Factories Act, Minimum Wages Act, Payment of Gratuity Act, Shops and Establishments Act etc.
• It is called organised because it has some formal processes and procedures.
• Some of these people may not be employed by anyone but may work on their own but they too have to register themselves with the government and follow the rules and regulations.
• Workers in the organised sector enjoy security of employment. They are expected to work only a fixed number of hours.
• If they work more, they have to be paid overtime by the employer.
• They also get several other benefits from the employers- for example, paid leave, payment during holidays, provident fund, gratuity etc.
• They are supposed to get medical benefits and, under the laws, the factory manager has to ensure facilities like drinking water and a safe working environment.
• Provision of pension at the time of retirement for the workers.
• Any other relevant point.

Any five points to be described.

(a)

Any other relevant point.

(Any five points to be explained.)

OR

(b)

• Increase the working days of MGNREGA-2005.
• Make the arrangements for irrigation.
• The villagers will be encouraged to borrow loans from the formal sources.
• Promote local industries.
• Setting up small scale cottage industries.
• Spreading awareness about self-employment opportunities.
• Promoting Self-Help Groups.
• Organising local markets and fairs.
• Any other relevant point.

(Any five points to be explained.)

(a)

• There are rules and regulations but unorganized sectors hardly follows these.
• Jobs are low paid.
• Jobs are not regular.
• There is no provision for overtime.
• There is no provision for paid leaves and leave due to sickness.
• Employment is not secure.
• Ensuring the protection of workers in this sector is a matter of economic and social justification and for inclusive development.
• Any other relevant point.

(Any five points to be examined.)

OR

(b)

• Ownership of assets and delivery of services are in the hands of private individuals.
• They charge money for the services.
• The facilities are based on earning and for profit making.
• Activities are based on market approach and analysis.
• Even for primary facilities like health, education etc they charge heavy amount.
• They seek competitive advantage.
• There are several things needed by the society as whole, which the private sector will not provide at a reasonable cost.
• Any other relevant point.

(Any five points to be examined.)

(a)

Any other relevant point

Any five points to be explained.

OR

(b)

Any five points to be explained.

(a)

• In any country several services such as hospitals, educational institutions, post and telegraph services, police stations, courts, village administrative offices, municipal corporations, defense, transport, banks, insurance companies, etc. are required. These can be considered as basic services.
• In a developing country the government has to take responsibility for the provision of these services.
• The development of agriculture and industry leads to the development of services such as transport, trade, storage and the like.
• Greater the development of the primary and secondary sectors, more would be the demand for such services.
• As income levels rise, certain sections of people start demanding many more services like eating out, tourism, shopping, private hospitals, private schools, professional training etc.
• Over the past decade or so, certain new services such as those based on information and communication technology have become important and essential. The production of these services has been rising rapidly.
• Any other relevant point.

(Any five points to be explained)

OR

(b)

(Any five points of difference to be explained)

38A. Working conditions of person M would have the following features:

• Regular Employment: Workers have assured, regular work with fixed terms of employment.
• Government Regulation: Enterprises are registered with the government and follow legal rules and regulations (e.g., Factories Act, Minimum Wages Act).
• Security of Employment: Workers enjoy job security with clear working hours and benefits.
• Overtime Compensation: If workers work beyond regular hours, they are paid overtime.
• Employee Benefits: Workers receive benefits like paid leave, holidays, provident fund, gratuity, and medical benefits.
• Safe Working Conditions: Employers are required to provide safe working environments (e.g., clean drinking water).
• Retirement Benefits: Workers are entitled to pensions after retirement.
• Formal Processes: The sector follows formal processes and procedures for employment.

Working conditions of person N would have the following features:

• Irregular Employment: Jobs are low-paid and often irregular, with no guarantee of continuous work.
• Lack of Government Regulation: The sector operates largely outside government control, with few or no legal protections.
• No Employee Benefits: Workers do not receive benefits like paid leave, overtime pay, or medical benefits.
• Job Insecurity: Employment is not secure; workers can be dismissed without notice or reason.
• Seasonal Work: Employment is often dependent on seasons, and workers may be laid off during off-peak periods.
• Informal Jobs: Many workers are self-employed, doing small jobs like street vending or repair work.
• Dependence on Employer: Employment conditions are influenced by the employer's whims and needs.
• No Legal Protections: There is little enforcement of rules or regulations related to working conditions or benefits.

OR

38B. Privatization: Positive Effects-

• Increased Efficiency and Productivity
• Improved Quality of Services
• Reduced Government Burden
• Any other relevant point(s)

Privatization: Negative Effects-

• Exclusion of Public Welfare - Profit being the only motive
• Loss of Employment Security
• Wide gap between rich and poor - due to inaccessibility of basic facilities
• Lower government accountability
• Any other relevant point(s)

(ANY 5 points to be accepted. However, at least 2 positive and 2 negative effects must be included in the response)

(D) It is authorised by the Government of India

(C) Landlord

(B) Nearest nationalised bank

(B) Because it is issued by the Reserve Bank of India on behalf of the Central Government.

(B) To secure the loan for the lender

(C) Both statement I and statement II are correct.

(D) Banks

(B) Cost of credit

(C) Only I, II and IV are correct

(C) Both poor households and households with few assets

(B) III, II, IV, I

(B) Only II, III and IV are correct.

(a) (i) and (iii) are correct.

(A) Cooperative Bank

(A) By increasing the circulation of currency

(A) Only (i), (iii) and (iv)

(C) A is true R is false

(A) Commercial bank

(d) To mitigate the risk of loan default.

(b) The difference of amount of interest between what is charged from borrowers and what is paid to depositors.

(D)To support economic growth

A - 362255

C – Reserve Bank of India

(B) Salim’s income will increase

(C) (A) is true but (R) is false

(A) Both (A) and (R) are true and (R) is the correct explanation of (A)

(D) The bank saves the farmer from debt trap

(A) Both (A) and (R) are true and (R) is the correct explanation of (A)

(C) Only I and III

(C) Money obtained as interest on loan from the borrower.

(C) Moneylender

(D) Cooperative Society

(A) Paper notes

(D) Rich household

(D) The Reserve Bank of India

(D) Members of Self-Helf Group (SHG)

(a)- Due to the absence of collateral security/(c) – Due to inaccessibility of rural people to banks /(d)- Due to banks being at far – off places

Note: One mark to be allotted in all the a/c/d options

B – Reserve Bank of India

A - It makes trade more complicated, as each person must have what the other person wants, limiting the pool of potential trade partners.

B. People accept it in return for goods and services, making trade easier.

D. Inflation rate

• Repayment of the loan is crucially dependent on the income from farming
• The failure of the crop made loan repayment impossible.
• Sometimes the borrower is not able to repay the loan.
• Many a times borrower is caught into the situation of debt-trap.
• To repay her loan person has to sell a portion of her/his land.
• The situation of the person gets much worse off than before.
• Any other relevant point

Any two points to be explained.

• The deposits in the bank accounts can be withdrawn on demand.
• Demand deposits make it possible to directly settle payments without the use of cash.
• They constitute money in the modern economy.
• Any other relevant point

Any two points to be explained

5.1 Formal Sector/ Bank

5.2

• Documents showing her employment records and salary
• Collateral - the papers of the new house

• Sometimes due to crop failure loan repayment is difficult.
• One has to sell part of the land to repay the loan.
• Credit, instead of helping leads to worsening the condition of the borrower.
• Push the borrower in debt-trap.
• Any other relevant point.

Note: Examples from any other field may also be considered.

(Any two points to be analysed.)

• When two parties have to agree to sell and buy each other's commodities, double coincidence of wants arise.
• In a Barter System where goods are directly exchanged without the use of money, there double coincidence of wants is an essential feature.
• Any other relevant point

Any two points to be mentioned

• Money is accepted as a medium of exchange
• The currency is authorized by the government of the country.
• Double coincidence of want
• No individual in India can legally refuse a payment made in rupees.
• Any other relevant point

Any two points to be explained.

Any three points of difference to be explained.

• In India, the Reserve Bank of India issues currency notes on behalf of the central government.
• As per Indian law, no other individual or organisation is allowed to issue currency.
• No individual in India can legally refuse a payment made in rupees.
• The Reserve Bank of India supervises the functioning of formal sources of loans.
• The RBI monitors that banks maintain a minimum cash balance out of the deposits they receive.
• The RBI sees that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, to small borrowers etc.
• Periodically, banks have to submit information to the RBI on how much they are lending, to whom, at what interest rate.
• Any other relevant point.

(Any three points to be explained.)

• The Reserve Bank of India mints currency on behalf of the Government of India.
• The Reserve Bank of India supervises the functioning of formal sources of loans.
• The RBI monitors the banks in maintaining cash balance. The banks have to maintain a minimum cash balance out of the deposits they receive.
• The RBI also sees that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, to small borrowers etc.
• The RBI ensures that cheap and affordable credit is available to everyone. Cheap and affordable credit is crucial for the country's development.
• Periodically, banks have to submit information to the RBI on how much they are lending, to whom, at what interest rate, etc.
• Any other relevant point.

Any three points to be explained.

• RBI issues the currency on behalf of the Central Government.
• It supervises the functioning of formal sources of loans.
• It monitors the banks for cash balancing.
• It sees that the banks give loans not just for profit making businesses and traders but also to small cultivators, small industries and small borrowers etc.
• Any other relevant point.

(Any three points to be explained.)

Any three points to be described.

• Credit helps to set up Industries.
• Credit helps to start businesses.
• It helps to improve the standard of living of the people.
• In rural areas credit helps in the development of agriculture by providing funds to farmers to buy seeds, fertilizers, expensive pesticides etc.
• It helps to generate employment.
• Examples may be taken from the story of Salim or Students may provide examples from their day to day life.
• Any other relevant point.

Any three points to be considered.

Credit

• A large number of transactions in our day–to-day activities involve credit in some form or the other.
• Credit refers to an agreement in which the lender supplies the borrower with money, goods or services in return for the promise of future payment.
• The credit helps people to meet the ongoing expenses of production, complete production on time and thereby increase his earnings.
• Credit plays a vital and positive role in case people need working capital for production. Like crop production involves considerable costs on seeds, fertilizers, pesticides, water, electricity, repair of equipment etc.
• Farmers usually take crop loans at the beginning of the season and repay the loans after harvest. Repayment of the loan is crucially dependent on the income from farming.
• Any other relevant point.

Any three points to be examined.

• To save poor farmers and workers from the exploitation.
• Formal sector charge a low interest rate on loans.
• To save from debt trap.
• It provides cheap and affordable credit.
• RBI supervises the formal sector credit through various rules and regulations which ensures that banks give loans to small cultivators, small borrowers etc. and not just to profit – making business and traders.
• Any other relevant point.

Any three points to be explained.

• The RBI issues currency notes on behalf of the central govt.
• It supervises the functioning of formal sources of loans.
• The RBI monitors the banks to maintain the cash balance.
• The RBI sees that the banks give not just to profit-making businesses and traders but also to small cultivators, small scale industries, to small borrowers etc.
• Periodically, banks have to submit information to the RBI on how much they are lending, to whom, at what interest rate, etc.
• Any other relevant point

Any three points to be explained.

OR

• Banks accept the deposits and pay an amount as interest on the deposits.
• Banks keep only a small proportion of their deposits as cash with themselves — 15 per cent
• This is kept as provision to pay the depositors who might come to withdraw money from the bank on any given day.
• Banks use the major portion of the deposits to extend loans.
• Banks make use of the deposits to meet the loan requirements of the people.
• In this way, banks mediate between those who have surplus funds (the depositors) and those who need these funds (the borrowers).
• Banks charge a higher interest rate on loans than what they offer on deposits.
• The difference between what is charged from borrowers and what is paid to depositors is their main source of income.
• Any other relevant point

Any three points to be explained.

Any other relevant point

(Any three points)

• Banks and cooperatives are formal sources of credit while the informal include moneylenders, traders, employers, relatives, friends etc.
• The Reserve Bank of India supervises the functioning of formal sources of loan whereas no organisation supervises informal sector.
• Formal sources charge nominal rate of interest while Informal lenders charge a much higher interest on loans.
• Mostly urban households are availing credit from formal lenders whereas the rural households avail credit from informal lenders.
• Collateral is an essential condition to get loans in the formal sector while it is not essential in the informal sector.
• Any other relevant point

Explain any three points of differentiation.

OR

• People hold money as deposits with banks which pay an interest rate on them.
• The major portions of the deposits in banks are used to extend loans.
• Banks mediate between those who have surplus funds called depositors and those who are in need of these funds called borrowers.
• Banks charge interest rate on loans than what they offer on deposits.
• Banks facilitate different sectors of economy.
• Any other relevant point

Any three points to be explained.

• Lack of set of documents to get a loan
• People who have not repaid previous loans
• Issue of high risks
• Irregular incomes
• Less chances of repayment of the loan
• Any other relevant point

Any three points to be explained

OR

• SHGs typically have 15–20 members, usually from the same neighbourhood, who meet and save regularly.
• Savings per member varies depending upon the ability of the people to save.
• Members take small loans from the group itself to meet their needs.
• The group charges interest on these loans at lesser rate of interest.
• After a year or so, if the group is regular in savings, it becomes eligible for availing loan from the bank.
• Loan is sanctioned in the name of the group to create self-employment opportunities for the members.
• Small loans are provided to the members for releasing mortgaged land, for meeting working capital needs, etc.
• People get timely loans for a variety of purposes and at a reasonable interest rate.
• Most of the important decisions regarding the savings and loan activities are taken by the group members.
• The group decides as regards the loans to be granted- the purpose, amount, interest to be charged, etc.
• Group is responsible for the repayment of loan
• In case of non-payment of loan by anyone is followed by other members
• SHGs are the building blocks of organization of the rural poor.
• Any other relevant point

Any three points to be explained

• Interest rate
• Collateral
• Documentation requirement
• The mode of repayment
• Any other relevant point

(Any three points to be explained)

• Informal sources of credit such as moneylenders know the borrowers personally and are often willing to give a loan without a collateral
• Bank loans require proper documentation and collateral which is rarely available with poor households.
• The method of borrowing loan from the formal source is very complex.
• Any other relevant point

Any three points to be explained

• Higher cost of borrowing from informal sources means a larger part of the earnings of the borrowers is used to repay the loan. Hence, borrowers have less income left for themselves (as we saw for Shyamal in Sonpur).
• In certain cases, the high interest rate for borrowing can mean that the amount to be repaid is greater than the income of the borrower. This could lead to increasing debt (as we saw for Rama in Sonpur) and debt trap.
• Also, people who might wish to start an enterprise by borrowing may not do so because of the high cost of borrowing.
• For these reasons, banks and cooperative societies need to lend more. This would lead to higher incomes and many people could then borrow cheaply for a variety of needs.
• They could grow crops, do business, set up small-scale industries etc. They could set up new industries or trade in goods. Cheap and affordable credit is crucial for the country’s development

Or any other relevant point(s) - Any 3

• SHG members are responsible collectively for repayment, so banks have assurance of repayment.
• The group monitors individual members and follows up on non-repayment cases.
• Regular savings and organized meetings show discipline and reliability, making banks confident to lend.

(Or any other relevant point) – (any 3)

38.1 Money deposited in banks and disbursed on demand is called demand deposit.

38.2 Demand deposit is the main source of income for the banks. Bank provide loans and charge interest. / Any other relevant point. Any one point to be explained.

38.3

• Less risk
• Easy to pay
• Less risk of fraud
• Less risk of robbery
• Any other relevant point

Any two points to explain.

38.1 Formal source of credit.

38.2 Bank.

38.3

• They enable rural people to avail loan without collateral.
• They also provide loans for the purchase of agricultural implements, for cultivation, agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses
• Any other relevant point

Any two points to be explained

36.1 Formal sources of credit

36.2

• Deposits from the members of the cooperative
• With the deposit as collateral the co-opearatives obtain large loans from banks.
• Interest earned on loans given by Cooperatives.
• Any other relevant point.

Any two points to be mentioned.

36.3

• Co-operative societies provide loans on low interest rates which can be further used for increasing crop production.
• They also give interest on deposits. This promotes small saving habits for the farmers.
• Co-operatives provide loans for variety of expenses such as the purchase of agricultural implements fisheries loans etc. which further leads to increase the income of farmers.
• Any other relevant point.

Any two points to be explained.

36.1 Bank/ Formal source

36.2

• Collateral
• Interest rate
• Documentation
• Mode of payment
• Any other relevant point

(Any one point to be mentioned.)

36.3

• Rate of interest is low.
• Loan can be repaid easily anytime in the next three years.
• With the low interest he can save the capital and invest in other ventures or can use next year for buying inputs.
• Any other relevant point

(Any two points to be explained.)

34.1 Formal Source of Credit

34.2 Banks/ Cooperatives/ Government

34.3

• Members of a cooperative pool their resources for cooperation in certain areas.
• There are several types of cooperatives possible such as farmers cooperatives, weavers cooperatives, industrial workers cooperatives, etc.
• For example Krishak Cooperative functions in a village not very far away from Sonpur.
• The Cooperative obtains a large loan from the bank.
• These funds are used to provide loans to members.
• Once these loans are repaid, another round of lending can take place.
• Krishak Cooperative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses.
• Any other relevant point

Any two points to be explained.

36.1 Formal source of credit.

36.2 Meets the requirements of rural people like purchase of agriculture implements, loans for cultivation and agricultural trade, etc.

36.3

• Contribution of members
• Loans from banks,
• Interest on loans given by Self Help Groups
• Any other relevant point.

(Any two points to be mentioned.)

36.1

• It has 2300 farmers as members. It accepts deposits from its members.
• They use it as collateral and obtain large loans from the bank.

36.2 Krishak Cooperative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses

36.3

• They offer cheap credit in rural areas.
• Once these loans are repaid, another round of loan is offered.
• Dependence on informal sources of credit reduces.
• They obtain loans from the bank without much documentation.
• Any two points to be mentioned.

Any five points of difference to be explained.

OR

• The idea behind self-help group is to organise rural poor, especially women.
• A typical Self-help group has 15-20 members, usually belonging to one neighbourhood.
• These members meet and save regularly.
• They collect a pool of Rs.25 to Rs.100 or more depending on their ability to save.
• Most of the important decisions regarding the savings and loan activities are taken by the group members.
• The members decide on - the purpose, amount, interest to be charged, repayment schedule etc.
• Members can take small loans from the group itself to meet their needs – releasing mortgaged land, meeting working capital needs, arranging for housing materials, acquiring assets.
• The group charges interest on loans which is less than that charged by money lenders.
• After a year or two, if the group is regular in savings, it becomes eligible for availing loan from the bank.
• Banks are willing to lend to the SHGs, even though they have no collateral as such.
• The group meets regularly to discuss and act on a variety of social issues.
• Any other relevant point.

Any five points to be explained.

• Credit plays a vital and positive role in economic development.
• Credit helps people to start new businesses and small-scale industries.
• People can invest in agriculture, industries, education and infrastructure with the help of easy access to credit which boosts economic growth.
• Farmers can take credit to buy seeds, fertilizers, machinery which increase agricultural productivity.
• When businesses expand with the help of credit, they create more job opportunities for people.
• People can use credit to buy houses, vehicles etc to improve their quality of life.
• Industries need large funds for buying machinery, technology and raw material which can be arranged through credit.
• Any other relevant point.

Any five points to be analysed.

OR

• The SHGs help borrowers overcome the problem of lack of collateral.
• They can get timely loans for a variety of purposes.
• Easy accessibility to loan.
• Interest on loan is very low.
• SHGs are the building blocks of organisation of the rural poor.
• SHGs help women to become financially self-reliant.
• SHGs provide a platform to discuss and act on a variety of social issues such as health, nutrition etc.
• Any other point

Any five points to be analysed.

(A)

• SHG is an organization which works with the rural poor especially women.
• It usually consists of 15-20 members belonging to one neighbourhood.
• They meet and save regularly.
• Saving per member varies from Rupees 25 to 100 or more depending on the ability of the people to save.
• Members can take small loans from the group to meet their needs at a very low rate of interest.
• If the group is regular in savings, it becomes eligible for availing loans from the bank.
• Loan is sanctioned in the name of the group to create self-employment opportunities for the members.
• The decisions regarding savings and loan activities are taken by the group members.
• The group is responsible for the repayment of the loan.
• Any case of non-repayment of loan by anyone-member, other members follow it up seriously.
• They get loans even without collateral from the banks.
• SHG is also a platform to discuss and act on various social issues such as health, nutrition, domestic violence etc.
• Any other relevant point

Any five points to be explained.

OR

(B)

• Formal source of credit includes banks and cooperatives.
• Loans given to small cultivators.
• Reasonable rates of interest charged.
• The cost to the borrower is much lower.
• Borrowers have more income left for themselves.
• Supervised by RBI.
• Encourages people who wish to start an enterprise by borrowing.
• Cheap and affordable credit is crucial for the country’s development.
• Less chances of rural indebtedness.
• Any other relevant point.

Any five points to be explained.

(a)

• People deposit their surplus money with the banks by opening a bank account in their name.
• Banks accept the deposits and pay an amount as interest on the deposits. In this way people’s money is safe with the banks and it earns an amount as interest.
• People can withdraw money as and when they require.
• Banks provide loans for various economic activities.
• Banks mediate between those who have surplus funds (the depositors) and those who are in need of these funds (the borrowers).
• Banks provide loans to small cultivators, small scale industries
• This leads to higher incomes.
• Any other relevant point.

(Any five points to be explained)

OR

(b)

• The idea behind Self Help Groups is to organise rural poor, in particular women, into small groups and pool (collect) their savings.
• A SHG has 15-20 members, usually belonging to one neighbourhood who meet and save regularly.
• Savings per member varies from Rs 25 to Rs 100 or more, depending on the ability of the people to save.
• Members can take small loans from the group itself to meet their needs.
• The group charges interest on these loans but this is still less than what the moneylender charges.
• After a year or two, if the group is regular in savings, it becomes eligible for availing loan from the bank.
• Loan is sanctioned in the name of the group and is meant to create self-employment opportunities for the members.
• Small loans are provided to the members for releasing mortgaged land, for meeting working capital needs (e.g. buying seeds, fertilisers, raw materials like bamboo and cloth), for housing materials, for acquiring assets like sewing machines, handlooms, cattle etc.
• Most of the important decisions regarding the savings and loan activities are taken by the group members.
• The group decides as regards the loans to be granted — the purpose, amount, interest to be charged, repayment schedule etc.
• It is the group which is responsible for the repayment of the loan.
• Any other relevant point.

(Any five points to be explained)

• SHGs help the rural poor, in particular women.
• A typical SHG has 15-20 members, usually belonging to one neighbourhood, who meet and save regularly. Saving per member varies from Rs 25 to Rs 100 or more, depending on the ability of the people to save. Members can take small loans from the group itself to meet their needs.
• The group charges interest on these loans but this is still less than what the moneylender charges. After a year or two, if the group is regular in savings, it becomes eligible for availing loan from the bank.
• Loan is sanctioned in the name of the group and is meant to create self- employment opportunities for the members.
• For instance, small loans are provided to the members for releasing mortgaged land, for meeting working capital needs (e.g. buying seeds, fertilizers, raw materials like bamboo and cloth), for housing materials, for acquiring assets like sewing machine, handlooms, cattle, etc.
• Most of the important decisions regarding the savings and loan activities are taken by the group members. The group decides as regards the loans to be granted – the purpose, amount, interest to be charged, repayment schedule, etc.
• Rural household face a problem of getting loan from the formal sector due to the lack of collateral.
• Self Help Group helps the poor household in getting loans easily and prevents them from falling under the clutches of moneylenders.
• Any other relevant points.

Any five points to be explained

OR

• Cheap and affordable credit would lead to higher income.
• If the credit is affordable then many people could borrow variety of needs.
• People could grow crops, do business, set up small scale industries, etc.
• People could set up new industries or trade in goods.
• Banks and Cooperatives should increase their lending particularly in the rural areas, so that the dependence on informal sources of credit reduces.
• It is also necessary that everyone receives these loans.
• It is important that the formal credit is distributed more equally so that the poor can benefit from the cheaper loans.
• Any other relevant point

Any five points to be explained.

Credit plays two roles-positive and negative

A. Positive role of credit:

• A large number of transactions in day to day activities involve credit.
• The credit helps to meet the ongoing expenses of production
• Credit plays a positive role when the borrower is able to return the loan amount on time and also makes some profit with the use of that money.
• It makes a person better off than before
• Any other relevant point

Any one point (1)

• Any example could be given explaining the positive role of credit (1 ½ ) (Example of book: Salim, a shoe manufacturer took a loan from different sources to complete the order of 3000 pair of shoes, in the end he delivered the order, made profit and repaid the loan.(1+1 ½ =2 ½ )

B- Negative role of credit:

• Sometimes failure of the crop makes loan repayment impossible.
• Sometimes credit is very painful as it pushes the borrower into such a situation from which recovery is very difficult.
• In this situation the borrower is not able to repay the loan
• Many times caught into the situation of debt-trap.
• To repay loan one has to sell portion of one's land
• Any example could be given explaining the negative role of credit
• Any other relevant point

Any point to be explained 1

• Any example could be given explaining the positive role of credit. (1 ½ ) (Example of book-A small farmer Swapna took loan for crop cultivation but due to some reason she faced the situation of crop failure. So she took another loan for spraying pesticides but the production was not enough to repay the loan. So she was caught in debt-trap.(1+1 ½ =2 ½ )

OR

A- Collateral

• Collateral is an asset that the borrower owns and uses this as a guarantee to lenders until the loans are repaid. Property such as land, deposits with banks, livestock are some examples of collateral used for borrowing.

B- Why is collateral a main reason to prevent the poor getting a loan from banks (4)

• Absence of collateral with the poor.
• Absence of documents with them.
• Absence of formal sources of credit in rural area .
• Lack of education and awareness among them.
• Any other relevant point

(Any Four points to be explained )

(a)

• Self–Help Groups in rural society is a way of providing loans to the poor.
• The idea is to organize rural poor, in particular women, into small Self-Help Groups (SHGs) and pool (collect) their savings.
• Saving per member varies from Rs 25 to Rs 100 or more, depending on the ability of the people to save.
• Members can take small loans from the group itself to meet their needs.
• Loan is sanctioned by the bank in the name of the group and is meant to create self-employment opportunities for the members.
• Most of the important decisions regarding the savings and loan activities are taken by the group members.
• The group decides the loans to be granted — the purpose, amount, interest to be charged, repayment schedule etc.
• Any case of nonrepayment of loan by any one member is followed up seriously by other members in the group.
• Because of this feature, banks are willing to lend to the poor women when organized in SHGs, even though they have no collateral as such.
• Any other relevant point.

Any five points to be explained

OR

(b)

• This would lead to higher incomes and many people could then borrow cheaply for a variety of needs, without getting into the debt trap.
• They could grow crops, do business, set up small-scale industries etc.
• Cheap and affordable credit is crucial for the country’s development.
• Most loans from informal lenders carry a very high interest rate and do little to increase the income of the borrower.
• Thus, it is necessary that banks and cooperatives increase their lending particularly in the rural areas, so that the dependence on informal sources of credit reduces.
• At present, it is the richer households who receive formal credit whereas the poor have to depend on the informal sources.
• It is important that the formal credit is distributed more equally so that the poor can benefit from the cheaper loans.
• Any other relevant point.

Any five points to be explained

• Rural people create Self-Help Groups (SHGs).
• SHGs are small groups of poor people which promote small savings among their members.
• A typical SHG has about 15–20 members.
• It helps borrowers to overcome the problem of lack of collateral.
• People can get timely loans for a variety of purposes and at a reasonable interest rate.
• It helps mainly women to become financially self-reliant.
• The regular meetings of the group provide a platform to discuss and act on a variety of social issues such as health, nutrition, domestic violence, etc.
• Any other relevant point.

(Any five points to be explained)

OR

Formal lenders :

• Sources of formal lending are loans from banks and cooperatives.
• The Reserve Bank of India supervises the functioning of formal sources of loans.
• Charge low interest.
• Collateral is must.
• Mainly taken by urban people.
• Any other relevant point.

Informal lenders :

• Sources of informal loans are moneylenders, traders, employers, relatives, friends, etc.
• There is no organisation which supervises the credit activities in the informal sector.
• High rate of interest.
• Sometimes collateral is asked.
• Mainly taken by the rural people.
• Any other relevant point.

(Any five points of differences to be examined.)

(C) Removing trade barriers and restrictions.

(B) To protect domestic producers from foreign competition.

(C) Removal of restriction on trade

(B) To protect local industries

(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

(B) Only I and III are correct.

(D) Liberalisation

(C) To regulate foreign trade into the country

(A) Both statements I and II are correct and statement II is the correct explanation of statement I

(A) Both statements I and II are correct and statement II is correct explanation of statement I.

(C) Liberalisation

(c) Enhanced Connectivity

(D) Both I and II are true and II is the correct explanation of I.

(C) Only I, III and IV are correct

(D) Facilitates faster movement of goods

(c) Liberalization

(B)I-c, II-d, III-a, IV-b

D – Access to New markets

(C) Process of rapid integration between countries

(B) Removing trade barriers

(A) Developed

(B) MNC can decide all parameters and prices of the product

(D) Disproportionate Growth

(C) Govt. wanted Indian producers to compete in the world Market.

(D) United States of America

(D) Access information instantly across countries

(A) MNCs can provide money and technology to local company

(d)- It employs labour only from its own country

(a)- Removing barriers on trade.

D - 1-i, 2-iii, 3-ii, 4-iv

A. Both A and R are true, and R is the correct explanation of A

• The process of Liberalization i.e. removing barriers or restrictions set by the government was started in the 1990s.
• The government decided that the time had come for Indian producers to compete with producers around the globe.
• It has facilitated the MNCs to set up their factories in India. Thus, Indian economy was integrated to the world economy and process of globalization started in India.
• Several steps were taken to attract foreign investment. Many SEZs were established in the country.
• Several steps were taken so that goods could be imported and exported easily and also foreign companies could set up factories and offices here. It has increased India’s foreign trade.
• Any other relevant point.

Any two points to be explained.

• Foreign trade between countries has been rising rapidly.
• Activities of most MNCs involve substantial trade in goods and also services.
• Greater foreign investment results in the greater integration of production.
• Greater foreign trade led to greater integration of markets across countries.
• More and more goods and services, investments and technology are moving between countries.
• Most regions of the world are in closer contact with each other than a few decades back.
• Any other relevant point.

(Any two points to be explained.)

• To protect the producers from foreign competition.
• To protect indigenous industries.
• To promote Indian economy.
• Encourage growth and development of Indian industries.
• Any other relevant point.

(Any two points to be explained.)

• Barriers on foreign trade and foreign investment were removed to a large extent.
• The goods could now be imported and exported easily.
• Foreign companies could now setup factories and offices in India.
• With liberalization of trade, businesses are allowed to make decisions freely about what they wish to import or export.
• Government has created Special Economic Zones (SEZs) to promote and attract foreign investment.
• MNCs have increased their investments in India.
• Globalisation has enabled some large Indian companies to emerge as multinationals.
• Any other relevant point.

Any two points to be explained.

• Globalization is this process of rapid integration or interconnection between countries.
• Rapid improvement in technology has been one major factor that has stimulated the globalization process.
• For instance, the past fifty years have seen several improvements in transportation technology which has prompted faster delivery of goods across long distances, possible at lower costs.
• Even more remarkable was the development of information and communication technology.
• For example satellite communication devices, mobile phones, fax etc.
• Any other relevant point.

Any two points to be explained.

• Telecommunication facilities
• Transport system
• Information technology
• Examples: Computers, Telephone, Internet, voicemail, email etc.
• Any other relevant points.

(Any two points to be explained.)

• Telecommunication facilities (telephone, mobile, fax) are used to contact one another around the world to access information instantly and to communicate from remote areas.
• Through the internet one can share information
• Internet also allows us to send instant email and voice mail across the world at negligible cost.
• It has played a major role in spreading out production of services across countries.
• Any other relevant points.

Any two points to be explained.

• In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly.
• Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas.
• This has been facilitated by satellite communication devices.
• Computers have now entered almost every field of activity.
• With the help of Internet, information can be obtained and shared
• Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.
• Any other relevant point.

(Any two points to be analysed.)

• Removal of trade barriers.
• Lowering of import duty.
• Tax incentive for foreign investors.
• Incentives for foreign investors like setting up of Special Economic Zones.
• Any other relevant point.

Any three points to be justified.

• Information technology has improved the areas of telecommunications, computers and Internet.
• Various facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world.
• Information Technology helps to access information instantly.
• It helps to communicate from remote areas.
• Any other relevant point.

Any three points to be explained

• Rapid improvement in technology has stimulated the globalisation process.
• Improvements in transportation technology made much faster delivery of goods across long distances possible at lower costs.
• Developments in information and communication technology especially in telecommunications, computers, and the Internet help to access information instantly.
• It is used to contact one another around the world, to access information and to communicate from remote areas.
• Satellite communication devices have facilitated global communication and information sharing.
• Computers have now entered almost every field of activity, making information management and communication easier.
• The Internet allows us to obtain and share information on almost anything, send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.
• Any other relevant point.

Any three points to be justified.

• Globalisation is the process of rapid integration or interconnection between countries.
• MNC's have been looking for locations around the world which would be cheap for their production. Foreign investment by MNC's in these countries has been rising
• MNC's setup production jointly with some of the local companies.
• They sell their products across the globe.
• A large part of the foreign trade is also controlled by the MNCs.
• Any other relevant point.

Any three points to be explained.

• Several improvements in transportation technology has made much faster delivery of goods across long distances possible at lower costs.
• Containers have led to huge reduction in port handling costs and increased the speed with which exports can reach markets.
• The cost of air transport has fallen which enabled much greater volumes of goods being transported by airlines.
• Rapid changes in telecommunications, computers and internet has resulted in greater interaction of the countries.
• Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas.
• Satellite communication devices have made communication much faster.
• Internet allows us to send instant electronic mail (e-mail) and talk (voice -mail) across the world at negligible cost.
• Information and communication technology have played a major role in spreading out production of services across countries.
• Any other relevant point.

(Any three points to be justified.)

• Rapid improvement in technology has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
• Telecommunication facilities (tele graph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas.
• Support by satellite communication devices has further facilitated information and communication technology.
• The internet has transformed the way we obtain and share information. The Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.
• Any other relevant point.

Any three points to be explained.

• Removal of barriers on foreign trade giving businesses opportunities to import and export.
• Encouraging investments by MNCs.Example, cell phones, automobiles, soft drinks, fast food etc.
• Encouraging Indian companies to compete with producers around the globe.
• Encouraging Indian companies to collaborate with foreign companies which has enabled some large Indian companies to become multi nationals themselves. Examples. Tata Motors and Infosys
• Improving infra structure and developing policies to attract foreign investment. Example, Special Economic Zones.
• It has created new opportunities for companies providing services. Example, IT.
• Any other relevant point.

Any three points to be explained.

• Barriers on foreign trade and foreign investment have been removed to a large extent.
• Goods can be imported and exported easily.
• Foreign companies can set up factories and offices here.
• Multinational companies can invest capital easily.
• With increased foreign trade more choices are available for consumers.
• Producers in two countries now closely compete against each other.
• MNCs produce goods and services globally.
• Increased foreign trade and investment lead to integration or interconnection between countries.
• Any other relevant point.

(Any three points to be explained.)

• Technology in the areas of telecommunications, computers, Internet has been changing rapidly.
• Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world.
• This has been facilitated by satellite communication devices.
• Provision of internet facility where one can obtain and share information.
• IT has played a major role in spreading out production of services across countries.
• Designing, printing e – banking facilities are also in this domain.
• Instant electronic mail (e-mail) and talk (voice mail) are available across the world at negligible costs.
• Any other relevant point

Any three points to be explained.

• Flexibility in labour laws has badly affected workers.
• MNCs employ them on a temporary basis to cut costs.
• They are not paid throughout the year.
• During peak seasons, workers are made to work for long hours and night shifts.
• Any other relevant point .

(Any three points to be described )

• More choice for the consumers.
• Consumers can compare quality, price, suitability, safety of products. So, consumers are benefited.
• People can enjoy much higher standard of living then was possible earlier.
• Creation of new jobs specially in IT Sector
• Better job opportunities for skilled persons.
• Better salaries and facilities for specialised skills at home
• Companies are investing in newer technology and production methods raising their production standards.
• Any other relevant point.

Any three points to be explained.

• Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers.
• WTO rules have forced the developing countries to remove trade barriers.
• An example of this is the current debate on trade in agricultural products.
• Any other relevant point.

(Any three point to be examined)

OR

• Special Economic Zones (SEZs) are being set up.
• SEZ are to have world class facilities- electricity/water/roads/transports/ Storage/recreational/educational facilities.
• Companies who set up production units in the SEZs do not have to pay taxes for an initial period.
• Government has also allowed flexibility in the labour laws to attract foreign investment.
• Companies are allowed 'flexibly' to hire workers for short period.
• Any other relevant point

(Any three points to be examined)

• the movements of goods and services,
• information and communication technology
• Transportation technology
• movement of people between countries
• Liberalisation of foreign trade and foreign investment policy

Any other relevant point (any 3 well explained)

• Technology (transport, telecom, Internet) allows fast movement of goods, services, and information across countries.
• Liberalisation reduces trade barriers and allows foreign investments, making it easier for businesses to operate globally.
• Together, they increase interconnection between countries, integrate markets, and expand opportunities for trade and investment.

(Or any other relevant point) – (any 3)

(A)

• Globalisation has encouraged foreign investments.
• MNCs set up production close to the markets and availability of skilled and unskilled labour at low costs.
• MNCs will choose countries which have policies which enable easy operations.
• MNCs set up production jointly with local companies.
• There is better exchange of technologies.
• Globalisation has increased the interdependence between countries.
• Consumers have more access to global products.
• Globalisation helps the integration of markets of the countries.
• It makes countries culturally rich.
• Sharing technology between countries benefitted human being.
• Kargil foods, Reliance Industries and other MNCs are the prime examples of industries which are help to integrate the countries.
• Any other relevant point.

Any five points to be explained

OR

(B)

• Rapid improvement in technology has been one major factor that has stimulated the globalisation process.
• For instance, the past fifty years have seen several improvements in transportation technology.
• This has made much faster delivery of goods across long distances possible at lower costs.
• Even more remarkable have been the developments in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly.
• Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world.
• Any other relevant point.

Any five points to be explained

(a)

• Rapid improvement in technology has been one major factor that has stimulated the globalisation process.
• For instance, the past fifty years have seen several improvements in transportation technology.
• This has made much faster delivery of goods across long distances possible at lower costs.
• Even more remarkable have been the developments in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly.
• Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world.
• Any other relevant point.

Any five points to be explained.

OR

(b)

Foreign Trade and Foreign investment are main channels of connecting countries.

• Foreign Trade creates opportunities for producers to reach beyond domestic markets and invest outside for better returns.
• Gives consumers more choices at less cost across the countries.
• Liberal policies of government i.e. removing barriers on imports and exports facilitate foreign trade and foreign investment.
• Liberalisation leads to expansion of foreign trade resulting in connecting of markets of various countries.
• Multinational Corporations expand their production and invest capital in various countries and produce the goods globally.
• For operating smoothly they need favourable government policies(libaralisation).
• Any other relevant point.

Any five points to be explained

(a)

• Removing barriers or restrictions set by government is known as liberalization.
• Liberalization of trade, business are allowed to make decisions freely.
• It has promoted free import.
• It has promoted free export
• Starting around 1991, Indian government made some far – reaching changes in policy.
• Foreign companies could set up factories.
• Foreign investment are encouraged.
• Enable the use of latest Technology
• Local companies can works as a MNC’s.
• Production of services can be spread easily.
• Foreign trade can be integrated.
• It strength the production and market
• Any other relevant point.

Any five points to be analyzed.

OR

(b)

• Technology has stimulated the process.
• Telecommunication facilities (Telephone, fax, emails, satellites technology)
• Transportation facilities
• Liberalization of foreign trade.
• Foreign investment Policy.
• Flexibility in labor law.
• Setting up Industrial Zone (SEZs).
• New opportunities have been created for companies.
• Any other relevant point.

Any five points to be examined.

• MNCs have increased their investments in India such as cell phones, automobiles, electronics, soft drinks, etc.
• New jobs have been created.
• Local companies supplying raw materials, etc. to these industries have prospered.
• Several of the top Indian companies have been able to benefit from the increased competition.
• They have invested in newer technology and production methods and raised their production standards. Some have gained from successful collaborations with foreign companies.
• Globalization has enabled some large Indian companies to emerge as multinationals themselves, Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners etc.
• Globalization has created new opportunities for companies providing services, particularly those involving IT.
• Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition.
• Several of the units have shut down rendering many workers jobless.
• Uncertain Employment; ‘workers’ jobs are no longer secure.
• Pressure of competition has substantially changed the lives of workers.
• Any other relevant point

Any five points to be explained.

OR

• Fair globalisation would create opportunities for all, and ensure that the benefits of globalisation are shared better.
• The government’s policies must protect the interests, not only of the rich and the powerful, but all the people in the country
• Labour laws must be properly implemented and the workers must get their rights.
• The government can support small producers to improve their performance till the time they become strong enough to compete.
• If necessary, the government can use trade and investment barriers.
• It can negotiate at the WTO for ‘fairer rules’.
• It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
• In the past few years, massive campaigns and representation by people’s organisation have influenced important decisions relating to trade and investments at the WTO.
• Any other relevant point

Any five points to be explained.

• MNCs set up production where it is close to the markets; where there is skilled and unskilled labour available at low costs.
• Availability of other factors of production is assured.
• The goods and services are produced globally as a result production is organized in increasingly complex ways.
• MNCs set up factories and offices for production where facilities are available.
• MNCs set up production jointly with some of the local companies.
• Sometimes MNC place orders for production with small producers
• MNCs set partnership with local companies.
• MNCs exert strong influence on production at distant locations.
• Any other relevant points.

Any five points to be explained

OR

• Govt has removed barriers on foreign trade and foreign investment.
• Liberalised policies have been introduced for globalization.
• Industrial zones called special Economic Zones (SEZs) are being set up.
• World class facilities like electricity, water, recreational, transport, storage facilities have been provided to foreign companies.
• Production unit in the SEZs do not have to pay taxes for first five years.
• Government has also allowed flexibility to the labour laws to attract foreign investment.
• Foreign Direct Investments and deregulation policies.
• Any other relevant point

Any five points to be explained.

• Liberalisation of the economy meant the steady removal of the rules that regulated trade and finance regulations, Liberty being given to foreign companies for trade and investment like FDI, Disinvestment, etc.
• Many Indian companies have become MNC and trading in other countries
• Many companies have invested in newer technology and production methods have raised their production standards
• Collaboration have been made with foreign companies.
• Side by side government put tax on imports as trade barrier.
• The government could also place a limit on the number of goods that can be imported. This is known as quotas. Example – trade barrier on Chinese toys.
• In this system of production and communication, rules regarding international trade are made, and see that these rules are obeyed.
• Foreign trade and investment in India were supported by some very powerful international organisations.
• SEZs special economic zones have been initiated to attract foreign companies with world class facilities.
• Govt. has allowed flexibility in the labour laws to attract foreign investment.
• Any other relevant point

(Any five points to be explained)

OR

• Among producers and workers, the impact of globalisation has not been uniform.
• Firstly MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them.
• MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
• In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
• Several of the top Indian companies have been able to benefit from the increased competition.
• They have invested in newer technology and production methods and raised their production standards. Some have gained from successful collaborations with foreign companies.
• Moreover, globlisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles)
• Globalisation has also created new opportunities for companies providing services, particularly those involving IT.
• NEGATIVE – Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.
• Competition and Uncertain Employment : Globalisation and the pressure of competition have substantially changed the lives of workers.
• Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers’ jobs are no longer secure.
• Any other relevant point.

(Any five points to be explained)

• Rapid improvement in technology.
• Improvement in Transport.
• Development of Information and Communication.
• Movement of goods and services between countries.
• Foreign investment.
• Working with WTO
• Liberalized policies of the government.
• Any other relevant point.

Any five points to be examined.

OR

• Local and foreign producers have been of advantage to consumers.
• Globalization resulted in greater competition among producers.
• There is a greater choice before the consumers.
• Larger sections of people enjoy improved quality of life.
• Due to globalisation people get lower prices for several products.
• New technology oriented products like cellphone, automobiles, electronics, softdrinks etc are in the market.
• New job opportunities are there for people.
• Any other relevant point.

Any five points to be assessed.

• Technology has been changing rapidly.
• Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact and access information.
• Helps to communicate from remote areas.
• Development of satellite communication devices.
• Computers have now entered almost every field of activity.
• One can obtain and share information through Internet.
• Electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.
• Has played a major role in spreading out production of services across countries.
• Any other relevant point