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Exercises · Q9

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

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A dual economy is one in which a modern, high-productivity sector coexists with a large traditional, lower-productivity sector. Andhra Pradesh fits this description clearly when we look at its sectoral composition of income (GSDP):

  1. The modern side. As per the 2024-25 Socio-Economic Survey, services (~41–42%) are the largest contributor to state income — the normal signature of a modernising economy — and the state also has a growing, port-led industrial sector (~23%), including steel, ports, pharmaceuticals and cement.
  2. The traditional side. At the same time, agriculture and allied activities still contribute about a third (~35%) of state income — a share that is much higher than in most fast-growing states or in the all-India figure. A very large part of the workforce, too, still depends on this sector. …

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