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Answer the following. (Class 12 Economics 2026, Q33A)

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EconomicsCBSE Class 12 · Board exam 2026, set 58/1/1 · 6 marks · Long answer

CBSE Class 12 Economics 2026: question 33(A)

Set in the CBSE Class 12 board exam of 2026, paper 58/1/1, section B, question 33(A), for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q33(A) · 6 marks · Long answerCompetency-basedLiberalisation, Privatisation and Globalisation: An Appraisal

Answer the following.

  1. (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.

    3 marks
  2. (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.

    3 marks

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 58/1/1.

Hints

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

Hint 1

Why can a US firm get its customer support done in India?

Hint 2

What is an "infant industry"?

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) Growth of IT and communication: fast, cheap telecommunications and the internet let services such as software, call centres and data processing be delivered from India to clients anywhere.

    1½ marks

  2. (i) Skilled, low-cost manpower: India has a large pool of educated, English-speaking, technically skilled workers available at relatively low wages, which cuts costs for MNCs.

    1½ marks

  3. (ii) Yes, I agree. After independence India followed import substitution and protected its industries with high tariffs and quotas. One aim was to promote domestic production by replacing imports with goods made at home.

    1½ marks

  4. (ii) The second aim was to shield infant domestic industries from more efficient foreign competition, giving them time to grow and become competitive.

    1½ marks

Answer: (i) Advanced IT/communication and cheap skilled labour make India an outsourcing hub. (ii) Agree: tariffs protected infant industries and promoted import substitution.

Where the marks are

  • Two factors for outsourcing, each stated and explained (½ + 1 each)
  • Agreement with two arguments for protective tariffs (1½ each)

Revise the chapter

Practise this chapterBoard-style questions from Liberalisation, Privatisation and Globalisation: An Appraisal, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 58/1/1: 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.