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Refer to the given… (Class 12 Economics SQP 2026-27, Q16)

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EconomicsCBSE Class 12 · Sample paper, session 2026-27 · 6 marks · Case-based

CBSE Class 12 Economics sample paper 2026-27: question 16

From the official CBSE sample question paper for 2026-27, section A, question 16, for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q16 · 6 marks · Case-basedCompetency-basedNational Income Accounting

Refer to the given text carefully:
India’s economic ascent continues to capture global attention. Already the world’s fourth largest economy, the nation is charting a confident course toward becoming the third largest economy by 2030, with Gross Domestic Product (GDP) projected at USD 7.3 trillion. The current growth phase reflects the strength of decisive policymaking, structural reforms, and India’s deepening global integration. With growth accelerating, India has once again outpaced global peers, reinforcing its position as the fastest-growing major economy. This surge is supported by resilient domestic demand, moderating inflation and higher labour force participation. A revival in domestic investment and strong investor sentiment signals a stable and broad-based economy. As these reforms gather pace and consumption remains optimistic, India’s economic outlook continues to upbeat, signalling sustained momentum and growth across sectors.
Gross Domestic Product (GDP) is one of the primary indicators of overall economic performance which reflects the rate at which the country is expanding. As per the latest data, the GDP of India (adjusted for inflation) is estimated to grow by 8.2% in Q2 of FY 2025-26 against the growth rate of 5.6% during Q2 of FY 2024-25. Each sector of the economy is playing a pivotal role in the growth of the country.
Source: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2195990&reg=3&lang=1 (adapted and modified)
On the basis of the given text and common understanding, answer the following questions:

  1. (I)

    Define Gross Domestic Product.

    1 mark
  2. (II)

    “GDP of India, adjusted for inflation, is estimated to grow by 8.2% in Q2 of FY 2025.”
    Elucidate whether the given projection represents Nominal GDP or Real GDP. Also, explain any one benefit of using this particular measure.

    2 marks
  3. (III)

    Comment upon the strong global position of India’s economy stating the major reasons for its recent growth surge.

    3 marks

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

Open one hint at a time and try again before the next.

Hint 1

"Adjusted for inflation" means valued at which prices?

Hint 2

List the reasons given in the passage.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. (I) GDP is the market value of all final goods and services produced within the domestic territory of a country during a given period (usually a year).

    1 mark

  2. (II) GDP "adjusted for inflation" is real GDP: final output valued at constant (base-year) prices.

    1 mark

  3. (II) Benefit: real GDP changes only when physical output changes, because it removes the effect of price changes, so it is a better indicator of economic growth.

    1 mark

  4. (III) India is the world's fourth-largest economy and the fastest-growing major economy, heading to become the third-largest by 2030 (GDP projected at USD 7.3 trillion).

    1 mark

  5. (III) Reasons for the surge: decisive policymaking and structural reforms, resilient domestic demand and optimistic consumption, moderating inflation, higher labour force participation, revival of domestic investment and strong investor sentiment, and deeper global integration, giving broad-based growth (real GDP growth 8.2% in Q2 FY 2025-26 vs 5.6% a year earlier).

    2 marks

Answer: (I) Market value of final goods and services produced in the domestic territory in a year. (II) Real GDP; it reflects only changes in physical output. (III) India is fourth-largest and fastest-growing, driven by reforms, domestic demand, low inflation, investment and global integration.

Where the marks are

  • Definition of GDP (1)
  • Real GDP identified (1)
  • Benefit of real GDP (1)
  • India's position and reasons for growth (marked as a whole, 3)

Revise the chapter

Practise this chapterBoard-style questions from National Income Accounting, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2026-27: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.