2.
Explanation
The dualistic nature of the Indian economy refers to the coexistence of two distinct economic sectors with significant differences in terms of development, productivity, and living standards. These two sectors are:
1. Modern/Urban Sector:
- This sector comprises urban areas and modern industries, such as technology, manufacturing, and services.
- It is characterized by higher productivity, higher wages, and better infrastructure.
- The workforce in this sector typically enjoys better working conditions and access to education and healthcare.
2. Traditional/Rural Sector:
- This sector includes rural areas and traditional agriculture, small-scale industries, and informal labor.
- It is characterized by lower productivity, lower wages, and limited access to infrastructure and public services.
- Workers in this sector often face seasonal employment, subsistence farming, and lower living standards.
The dualistic nature of the Indian economy has historical and structural roots. Many people in India are engaged in low-productivity agriculture, which often depends on rainfall and outdated techniques. This has led to income disparities between rural and urban areas. Urbanization and the growth of modern industries have further widened these gaps.
Efforts to bridge this divide have been a central focus of Indian economic policy. Initiatives like the Green Revolution, rural development programs, and urbanization projects aim to uplift the traditional sector and create more equitable opportunities. However, the dualistic nature of the economy remains a significant challenge for India, affecting issues such as income inequality, social disparities, and regional imbalances.