PYQs – Class 10 Economics Chapter 4: Globalisation and the Indian Economy | CBSE | GPN

📚 Past Year Questions (PYQs) 2019-2024

This section contains 35 authentic questions from CBSE board exams (2019 to 2024) for Chapter 4: Globalisation and the Indian Economy. Organized by marks category with model answers. Master these to understand India in the global economy.

🌍 Chapter 4 Focus Areas

This chapter carries 8-10 marks in board exams. High-weightage topics: What is globalisation, Factors enabling globalisation, WTO, Impact on India, MNCs, Fair globalisation, and India's liberalisation policy.

Most Repeated: MNCs (6 times), Liberalisation of 1991 (5 times), WTO role (4 times)

Conceptual Focus: Understand both positive and negative impacts, and debates around fair globalisation

Current Context: Link to Make in India, Atmanirbhar Bharat, trade agreements

PART A: Very Short Answer Questions (1 Mark Each)

Answer in one word or one sentence. Be precise with economic terms.

What is globalisation? [CBSE 2024]
Answer: Integration of economies through trade, investment, technology flow, and movement of people across borders.
Define MNC. [CBSE 2023]
⚠️ Repeated
Answer: Multinational Corporation - company that operates in several countries with headquarters in one country.
What does WTO stand for? [CBSE 2023]
Answer: World Trade Organization.
What is foreign investment? [CBSE 2022]
Answer: Investment made by MNCs or foreign entities in another country's production/assets.
What is liberalisation? [CBSE 2022]
Answer: Removing barriers or restrictions set by government on foreign trade and investment.
Define privatisation. [CBSE 2021]
Answer: Transfer of ownership from public sector (government) to private sector.
What are trade barriers? [CBSE 2021]
Answer: Restrictions on foreign trade (tariffs, quotas) to protect domestic industries.
What is meant by 'investment'? [CBSE 2020]
Answer: Spending on assets (machinery, buildings) to produce goods/services in future.
What does FDI stand for? [CBSE 2020]
Answer: Foreign Direct Investment.
What is outsourcing? [CBSE 2019]
Answer: Hiring external company/individual to perform services instead of company's own employees.

PART B: Short Answer Questions (3 Marks Each)

Write answers in 60-80 words. Include examples from Indian context.

Explain any three ways in which MNCs control production in other countries. [CBSE 2024, 3 marks] ⚠️ High Probability
Answer: MNCs control through: (1) Direct investment in local companies. (2) Partnerships/joint ventures. (3) Placing orders with small producers (outsourcing). (4) Buying local companies. (5) Controlling technology/brand. Example: Pepsi controls through franchise model; automobile companies through joint ventures.
What are the factors that have enabled globalisation? Explain any three. [CBSE 2023, 3 marks]
Answer: Enabling factors: (1) Technology (internet, containers, telecom). (2) Liberalisation policies (trade barriers reduced). (3) Transportation improvements. (4) WTO promoting free trade. (5) Growth of MNCs. Example: Internet enables 24/7 global business; containers reduced shipping costs by 90%.
How has globalisation affected the lives of Indian consumers? Explain with examples. [CBSE 2023 Compartment, 3 marks]
Answer: Effects on consumers: (1) More choices (cars, phones, food). (2) Better quality due to competition. (3) Lower prices for many goods. (4) Access to global brands. (5) Changed consumption patterns. Example: Mobile phones from ₹20,000 (1990s) to ₹5,000 now with better features; food chains like McDonald's, KFC.
What is liberalisation? Describe Indian government's approach towards liberalisation since 1991. [CBSE 2022, 3 marks]
Answer: Liberalisation: Reducing government restrictions. India's approach since 1991: (1) Reduced import duties. (2) Allowed foreign investment. (3) Ended license raj. (4) Privatised PSUs. (5) Opened services sector. Examples: FDI in retail, auto, telecom; removal of import quotas.
Explain the role of WTO in globalisation. [CBSE 2022, 3 marks]
Answer: WTO role: (1) Sets global trade rules. (2) Resolves trade disputes. (3) Promotes trade liberalisation. (4) Monitors trade policies. (5) Technical assistance to developing countries. Example: WTO ruled against US cotton subsidies helping Indian farmers; but criticized for favouring developed nations.
What are the advantages of foreign trade? [CBSE 2021, 3 marks]
Answer: Advantages: (1) Expands market for producers. (2) Increases consumer choices. (3) Promotes competition and efficiency. (4) Access to technology. (5) Foreign exchange earnings. (6) Specialisation based on comparative advantage. Example: Indian software exports ($150 billion); Chinese goods in Indian markets.
Explain the meaning of 'fair globalisation'. [CBSE 2021, 3 marks]
Answer: Fair globalisation: (1) Benefits distributed equally. (2) Protection for vulnerable groups. (3) Labour and environmental standards. (4) Developing countries get fair deal. (5) Regulated to prevent exploitation. Contrast with current reality where rich countries/companies benefit more.
How has competition benefited people in India? [CBSE 2020, 3 marks]
Answer: Benefits: (1) Lower prices (telecom tariffs fell 95%). (2) Better quality. (3) Innovation (features in phones). (4) Better service (24/7 customer care). (5) Employment opportunities. Example: Telecom: Monopoly BSNL vs now Jio, Airtel, Vi competition benefiting 1.2 billion users.
What are SEZs? Why are they set up? [CBSE 2020, 3 marks]
Answer: SEZs: Special Economic Zones - industrial zones with special incentives. Set up to: (1) Attract foreign investment. (2) Promote exports. (3) Create jobs. (4) Develop infrastructure. (5) Boost manufacturing. Example: 270+ SEZs in India; successful: Nokia SEZ Sriperumbudur (created 8,000 jobs).
Explain how information and communication technology has contributed to globalisation. [CBSE 2019, 3 marks]
Answer: ICT contribution: (1) Instant communication (email, video calls). (2) E-commerce (Amazon, Flipkart). (3) Remote work/services (IT outsourcing). (4) Financial transactions globally. (5) Supply chain management. Example: Indian IT industry ($200 billion) enabled by ICT; telemedicine connecting rural India to global specialists.

PART C: Long Answer Questions (5 Marks Each)

Write answers in 100-120 words. Balance positive and negative aspects.

Analyse the impact of globalisation on Indian agriculture. [CBSE 2024, 5 marks]
Answer: Impact on agriculture:

Positive: (1) Export opportunities (basmati rice, spices). (2) Technology transfer (drip irrigation). (3) Higher incomes for commercial crops. (4) Food processing industry growth.

Negative: (1) Import competition hurting farmers (edible oils, cotton). (2) Price volatility due to global markets. (3) WTO rules restrict subsidies. (4) MNC control over seeds (Monsanto).

Mixed outcome: Large farmers benefited; small farmers suffered. Need for protection and support measures.
What are MNCs? How do they influence globalisation? Explain with examples. [CBSE 2023, 5 marks] ⚠️ Most Important
Answer: MNCs: Companies operating across borders. Influence globalisation through:

(1) Production networks: Apple designs in US, assembles in China, markets globally.
(2) Investment flows: Toyota, Suzuki invest in Indian auto sector.
(3) Technology transfer: Samsung brings smartphone tech to India.
(4) Cultural influence: McDonald's adapts menu (McAloo Tikki).
(5) Political influence: Lobbying for trade policies.

Top 100 MNCs control 20% global production. Both drivers and beneficiaries of globalisation.
Explain the positive and negative impacts of globalisation on Indian industry. [CBSE 2023 Compartment, 5 marks]
Answer: Impacts on Indian industry:

Positive: (1) Access to technology/machinery. (2) Export markets expanded. (3) Quality improvements. (4) Employment in some sectors (IT, auto).

Negative: (1) Small-scale industries destroyed (toys, electronics). (2) Rising imports (China $100 billion). (3) Job losses in traditional sectors. (4) Environmental damage.

Sector differences: IT services flourished (global leader); manufacturing struggled (Chinese competition). Need for balanced approach.
Describe the factors that led to economic reforms of 1991 in India. [CBSE 2022, 5 marks]
Answer: Factors leading to 1991 reforms:

(1) Balance of Payments crisis: Foreign reserves for 3 weeks only.
(2) High fiscal deficit: 8.4% of GDP.
(3) Inflation: 13-14%.
(4) Low growth: "Hindu rate of growth" 3-4%.
(5) License Raj inefficiencies.
(6) Global changes: Soviet collapse, China's success.
(7) IMF conditionalities for loan.

Result: New Economic Policy - Liberalisation, Privatisation, Globalisation (LPG model).
What is meant by 'trade barrier'? Why did Indian government remove trade barriers? Explain. [CBSE 2022, 5 marks]
Answer: Trade barrier: Restrictions on imports/exports (tariffs, quotas).

Reasons for removal:
(1) WTO requirements after joining (1995).
(2) Attract foreign investment.
(3) Access foreign technology.
(4) Promote exports through reciprocity.
(5) Improve efficiency through competition.
(6) Consumer demand for variety.

Example: Import duty on cars reduced from 150% (1991) to 100% (2001) to 60% (2014). Mixed results: auto sector grew but many industries declined.
How has globalisation affected employment in India? Explain with examples. [CBSE 2021, 5 marks]
Answer: Employment effects:

Positive: (1) IT/ITES sector created 4.5 million jobs. (2) Export-oriented industries (garments, gems). (3) Services (retail, hospitality). (4) Higher wages in formal sector.

Negative: (1) Job losses in small industries. (2) Informalisation of work (contract labour). (3) Agriculture distress → migration. (4) Skill-biased: benefits educated.

Net: Created quality jobs for skilled; unskilled faced insecurity. Urban-rural divide widened.
Explain the role of government in making globalisation fair. [CBSE 2021, 5 marks]
Answer: Government role for fair globalisation:

(1) Protect vulnerable sectors (farmers, small industries).
(2) Labour laws implementation.
(3) Environmental regulations.
(4) Social safety nets (MGNREGA).
(5) Skill development programs.
(6) Negotiate better trade deals.
(7) Support domestic industries initially.

Examples: China protected industries for 15 years before opening; India's Atmanirbhar Bharat for self-reliance.
What are the advantages of globalisation for developing countries like India? [CBSE 2020, 5 marks]
Answer: Advantages for India:

(1) Higher growth: GDP growth increased from 3-4% to 6-8%.
(2) Technology access: Mobile phones, internet, medical tech.
(3) Foreign investment: $500 billion FDI since 1991.
(4) Export growth: $20 billion (1991) to $450 billion (2022).
(5) Poverty reduction: From 45% (1993) to 22% (2011).
(6) Consumer benefits: Choices, quality, prices.
(7) Employment in modern sectors.

But benefits unevenly distributed.

Compare the situations of Indian economy before and after globalisation. [CBSE 2020, 5 marks]

Answer: Comparison:

Aspect	Before Globalisation (pre-1991)	After Globalisation (post-1991)
Growth Rate	3-4% ("Hindu rate")	6-8% (except crises)
Foreign Trade	Restricted, license required	Open, $900 billion trade
Technology	Outdated, limited access	Modern, rapid adoption
Consumer Choice	Limited (Ambassador car only)	Global brands available
Employment	Secure but limited jobs	More jobs but less secure

Mixed transformation: Growth improved but inequality increased.

Explain the concept of 'outsourcing' and its significance for Indian economy. [CBSE 2019, 5 marks]
Answer: Outsourcing: Contracting work to external agency.

Significance for India:
(1) IT-ITES sector: $200 billion industry, "back office of world".
(2) Employment: 4.5 million direct jobs.
(3) Foreign exchange: Largest services export.
(4) Skills development: Technical/English skills.
(5) Urban development: Bengaluru, Hyderabad, Pune growth.
(6) Global integration: Indian professionals globally mobile.

Types: BPO (call centers), KPO (knowledge process), IT services. Challenges: Job automation, competition from other countries.

PART D: Current Affairs & Case Studies (4 Marks Each)

Note: These link textbook concepts to recent economic developments.

Case: Indian toy industry: 2000 - 75% market Indian; 2020 - 75% Chinese. Why? What should be done? [CBSE 2023, 4 marks]
Answer: Reasons: (1) Chinese cheaper due to scale. (2) Better technology/design. (3) Indian industry fragmented. (4) Quality issues.

Solutions: (1) Quality improvement. (2) Cluster development. (3) Design innovation. (4) E-commerce access. (5) Government support (PLI scheme).

Current: Import duty increased from 20% to 60%; production increased 40% (Atmanirbhar effect). Shows need for strategic protection in globalisation.
Data: FDI inflows: 1991 - $100 million; 2022 - $84 billion. What factors attracted this? What concerns? [CBSE 2022, 4 marks]
Answer: Attraction factors: (1) Large market (1.4 billion). (2) Skilled labour. (3) Liberal policies (100% in many sectors). (4) Infrastructure improvements.

Concerns: (1) Sector concentration (services, not manufacturing). (2) Country concentration (Mauritius, Singapore routes). (3) Takeovers of Indian companies. (4) Profit repatriation ($20 billion yearly).

Need: More FDI in manufacturing (Make in India), technology transfer, backward linkages.
COVID-19 impact: Global supply chains disrupted. What lessons for India's globalisation strategy? [CBSE 2021, 4 marks]
Answer: Lessons: (1) Over-dependence on China risky (APIs, electronics). (2) Need diversification. (3) Essential goods self-reliance. (4) Digital infrastructure critical (remote work).

India's response: (1) Atmanirbhar Bharat. (2) PLI schemes ($26 billion). (3) China+1 strategy by MNCs. (4) Focus on resilient supply chains.

Balance needed: Global integration + strategic autonomy. Not isolation but smart globalisation.
Compare IT sector and textile sector experiences with globalisation. Why different outcomes? [CBSE 2020, 4 marks]
Answer: Comparison:

IT sector: Thrived (global leader, $200 billion, high wages). Reasons: Skilled English-speaking workforce, time zone advantage, government support.

Textile sector: Struggled (lost market share to Bangladesh, Vietnam). Reasons: Inflexible labour laws, outdated technology, power costs, smaller scale.

Lesson: Globalisation benefits skill-intensive sectors; hurts labour-intensive without competitiveness. Need sector-specific strategies.
Make in India vs Globalisation: Complementary or contradictory? Analyse. [CBSE 2019, 4 marks]
Answer: Analysis: Both complementary if done right.

Complementary aspects: (1) Attract FDI for manufacturing. (2) Export Indian-made goods. (3) Global value chain integration. (4) Technology partnerships.

Contradictory if: (1) Becomes protectionism. (2) Ignores comparative advantage. (3) Rejects beneficial imports.

Smart approach: Make in India for world - produce competitively for global markets. Example: Mobile manufacturing increased from 60 million (2014) to 300 million (2021) units, exports growing.

🌐 Chapter 4 Exam Strategy

Key Definitions: MNC, Liberalisation, Globalisation, WTO, SEZ, Outsourcing

Must-Know Data: 1991 reforms context, FDI trends ($84 billion), IT sector size ($200 billion)

Balanced Analysis: Always discuss both positive and negative impacts, winners and losers

Current Linkages: Atmanirbhar Bharat, PLI schemes, China+1 strategy, COVID supply chain lessons

Common Mistake: Don't take extreme positions - globalisation isn't all good or all bad

⚠️ Warning: "Impact of globalisation on India" and "MNCs role" appear almost every year. Prepare sector-wise impacts (agriculture, industry, services).

💡 Pro Tip: When asked "explain with examples," use specific Indian examples: IT industry success, toy industry challenges, auto sector transformation, farmer issues.

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