Q."Andhra Pradesh has a dual economy." Explain this statement with reference to the sectoral composition of its income.

Andhra Pradesh's State Gross Domestic Product has grown steadily over the years, and its structure has shifted away from agriculture toward industry and, above all, services. Agriculture's share in output has fallen while the services sector has become the largest contributor, even though agriculture still employs a large share of workers. This is an AP Intermediate 2nd-year Economics topic on the economy of Andhra Pradesh.

State Gross Domestic Product (SGDP), also called Gross State Domestic Product (GSDP), is the total money value of all final goods and services produced within the geographical boundaries of a state during a year. The trends in Andhra Pradesh's SGDP can be described as follows:

1. Steady growth in the size of the economy. The SGDP of Andhra Pradesh has risen year after year in both current and constant prices, and the state has generally recorded growth rates comparable to or higher than the national average, indicating an expanding economy.
2. Rising per-capita income. Along with SGDP, the per-capita income of the state has also increased over time, reflecting improvement in average living standards.
3. Structural change in composition. The relative contribution of the three sectors has changed:
   • the primary sector (agriculture and allied activities) has seen its share in SGDP decline, even though it still supports a large part of the workforce;
   • the secondary sector (industry, manufacturing and construction) has grown moderately;
   • the tertiary sector (services such as trade, transport, finance, information technology and public services) has grown the fastest and now contributes the largest share of the SGDP.
4. Service-led growth. Much of the recent increase in SGDP has come from the services sector, following the all-India pattern of service-led growth. …