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Economics · 2026 · 6 marks
Liberalisation, Privatisation and Globalisation: An AppraisalGlobalisation6 marksUnderstandlong answer
CBSE 2026 · Region 1 · Set 1 · Q33
(A) (i) Mr. Ravi, an IT entrepreneur from Bengaluru, observed that several MNC’s prefer India as their outsourcing Hub for services like software…
(i)
Mr. Ravi, an IT entrepreneur from Bengaluru, observed that several MNC’s prefer India as their outsourcing Hub for services like software development, customer support, data management etc.
His friend Priya believes this is due to certain inherent advantages of the Indian economy.
In your opinion, state and explain any two factors that make India a preferred outsourcing destination.
(ii)
“In the post-independence era, India adopted a protective tariff policy.”
Do you agree with the given statement ? Justify your answer with any two valid arguments.
(i)
‘Strategic sale of a public sector undertaking and minority sale of their shares are methods of disinvestment.’ Defend or refute the given statement with valid argument.
(ii)
Discuss briefly, how bilateral trade agreements are different from multilateral trade agreements ?
Marking-scheme solution
(A) (i) India has emerged as a preferred outsourcing destination because of:
Expansion of Information Technology and Communication: Growth of fast modes of communication, particularly the growth of Information Technology (IT).
Availability of skilled manpower: Efficient and skilled manpower is available at a relatively affordable cost.
(A) (ii) Yes. In the post-independence era, India adopted a protective tariff policy to:promote domestic production by substituting imports with locally produced goods.
safeguard emerging industries from intense foreign competition, allowing them to grow and develop sustainably.
(B) (i) The given statement is defended. Both strategic and minority sale are the methods of disinvestment used by the government to reduce its ownership and encourage private participation. It leads to improved efficiency and better performance of public sector enterprises. Strategic sale involves transferring a significant share of government ownership along with management control to a private entity. Although minority sale refers to selling a limited portion of shares while the government retains control.(B) (ii) Bilateral Trade Agreement refers to the agreements relating to exchange of Goods and services between two countries.Whereas;Multilateral Trade Agreement refers to the trade agreements made by a country with more than two nations to exchange goods and services.All Liberalisation, Privatisation and Globalisation: An Appraisal questions2026 question paperPractice Liberalisation, Privatisation and Globalisation: An Appraisal →
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CBSE Class 12 Economics past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.