Dual economy
Also called: Economic dualism · Topic: Sectors of the Indian Economy · NCERT: Beyond NCERT
Meaning
A dual economy has two very different sectors side by side. One is a modern sector: capital-intensive (using a lot of machines and money), with high productivity (output per worker). The other is a traditional sector: farm or informal, with low productivity. W. Arthur Lewis (1954) described how surplus farm labour can move to the modern sector as a country develops. The idea explains why an economy can have high growth in some parts while most people remain poor.
Example
In India, a modern car factory or software firm stands next to a huge farm sector. Agriculture held about 46% of workers in 2023-24 but produced only about 16-18% of GVA. That contrast is dualism in action.
Don't confuse with
- Organised vs unorganised sector: this split is based on employment conditions such as registration, job security and benefits. Dualism is about productivity and technology. The two often overlap, but they are different lenses.