CT-1 XII ECONOMICS (030) MARKING SCHEME (2022-23)

1. 1881, 1850, less than 2%, about 7% (0.5 marks for each)
2. It refers to contribution made by agricultural, industrial and service sector in the GDP of the
country.
Statement 2 is true and statement 1 is false. (1 mark for each)
3. Import substitution helped in protecting domestic industries in two ways:
Tariffs and quotas (with explanation) (1 mark for each)
OR
Industries were classified into 3 categories.
Schedule A, B and C with explanation (marked as a whole)
4. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A). (1 mark for each)
5. Functions:
To enlarge production and trade of services
To facilitate international trade
To establish a rule-based regime
To protect the environment (or any other point) (0.5 marks for each)
6. Privatisation means transfer of ownership, management and control of public sector enterprises to
the entrepreneurs in the private sector.
Privatization can be done in two ways:
i) Transfer of ownership and management of public sector companies from the
government to the private sector
ii) Privatization of public sector undertakings by selling off part of the equity of
public sector undertakings to the public, this process is known as
disinvestment
(1 mark for each)
7. Economic reforms have not been able to benefit the agricultural sector because
i. Public investment in agriculture sector especially in infrastructure which
includes irrigation, power, roads, market linkages and research and extension
has been reduced in the reform period.
ii. The removal of fertiliser subsidy has led to increase in the cost of
production which has severely affected the small and marginal formers.
iii. Various policy changes like reduction in import duties on agricultural
products, removal of minimum support price and lifting of quantitative
restrictions have increased the threat of* international competition to
the Indian formers.
iv. Export-oriented policy strategies in agriculture has been a shift from
production for the domestic market towards production for the export
market focusing on cash crops in lieu of production of food grains.
(any 3 points) (1 mark for each)
8. SELF-RELIANCE
Aims to make the economy self-reliant in the production of goods (with explanation)
(marked as a whole)
9. LAND REFORMS: Land reforms refers to the change in the ownership of Landholdings
ABOILITION OF INTERMEDIARIES: During British rule Land Settlement system prevailed
in India which resulted in low productivity.
With the ownership rights granted to tenants under this scheme, an incentive was provided to
tenants to increase the investment and agricultural output.
 LAND CEILING: Land ceiling refers to fixing the specified limit of land, which could be owned
by an individual. The purpose was to promote equity in the agricultural sector. There were many
loopholes in its implementation which made this policy unsuccessful. (1.5 marks for each)
OR
Public sector played leading role during initial period:
• Shortage of capital with the Private sector (with explanation)
• Lack of incentive for Private sector to invest as returns were limited due to limited demand.
10. To promote equity and social welfare, Government direct participation was required in the
process of industrialization. (1 mark for each)
11. Industrial sector: (Any 3 points with expalantion) (1 mark for each)
- De-industrialisation
- Lack of capital goods industry
- Adverse effects of decline of handicrafts industry
- Low contribution to GDP
- Limited role of public sector
12. Meaning- Green Revolution refers to the large increase in production of food grains due to use
of high yielding variety(HYV) seeds. (1 mark)
Need: large share of workforce in agriculture, low productivity, Dependency of India on USA for
import of food. (1 mark)
13. Benefits: (with explanation) (1 mark for each)
- Attaining marketable surplus
- Buffer stock of food grains
- Benefit to low income groups
14. Agricultural sector (5 points with explanation) (1 mark for each)
- Land settlement system
- Adverse effects of partition
- Commercialisation of agriculture
- Low level of productivity
- Scarcity of investment.
15. Industrial sector reforms (any 3 points with explanation) (1 mark for each)
- Reduction in industrial licensing
- Decrease in role of public sector
- De-reservation under small-scale industries
Foreign sector reforms (any 2 points with explanation)
- Devaluation of rupee
- Market determination of exchange rate
OR
Any 5 points of criticism