Q.What is meant by a 'dualistic economy'? Explain briefly with reference to India.

A dualistic economy is one where a modern, advanced sector exists alongside a traditional, less-developed sector, with limited connection between the two. …

A dualistic economy is one in which two very different economic structures exist side by side within the same country, with only limited interaction or technology transfer between them.

In India, this dualism is clearly visible: on one side is a relatively modern sector — large corporate industry, organised banking and finance, IT and software services, and modern large-scale manufacturing — that uses advanced technology, operates at scale, and is often globally competitive. On the other side is a traditional sector — small and marginal farms using largely manual methods, household and small-scale industry, and a very large informal (unorganised) trade and service sector — that uses simpler technology, is generally less productive per worker, and is much less connected to global markets. …

Confusing "dualistic economy" with simply "rural vs urban" — the real distinction is about technology, productivity and organisation (modern/advanced vs traditional/less- …