In development economics, a "dual economy" typically refers to a mixture of which two broad sectors in a country like India?

Introduction / Context:
The concept of a dual economy is often used to describe developing countries where different parts of the economy are at very different levels of development. In such economies, a traditional, largely subsistence based sector coexists with a modern, capital intensive sector. India is frequently cited in economic literature as an example of a dual economy, especially during early stages of development. This question asks which sectors are being referred to in that description.

Given Data / Assumptions:

• The term in focus is "dual economy."
• The options present different combinations of sectors.
• We assume that the classical meaning of dual economy from development theory is intended.
• The task is to identify which two sectors form the main contrast in such models.

Concept / Approach:
Development economists such as W Arthur Lewis described dual economies as having a traditional, low productivity, subsistence agricultural sector alongside a modern, high productivity, industrial or urban sector. The agricultural sector is characterised by surplus labour, low wages, and outdated technology, while the modern industrial sector uses capital intensive methods and offers higher wages and productivity. This framework has been widely applied to countries like India during certain phases of development.

Step-by-Step Solution:
Step 1: Recall the definition of a dual economy from development economics, especially the Lewis two sector model.Step 2: Identify that the two sectors are the traditional agricultural sector and the modern industrial sector.Step 3: Examine the options and find the one that matches this pair.Step 4: Recognise that option a describes exactly this combination.Step 5: Select the traditional agricultural sector and modern industrial sector mixture as the correct answer.

Verification / Alternative check:
Standard textbooks on development economics describe dual economies in terms of a rural, subsistence agriculture sector with surplus labour and an urban, capitalist industrial sector. The models emphasise labour migration from the traditional sector to the modern sector as the mechanism of development. None of the alternative combinations mentioned in the other options correspond to this standard formulation.

Why Other Options Are Wrong:
The industrial sector and manufacturing sector in option b are closely related and do not form the contrasting pair that defines a dual economy. Option c, which mentions a state owned sector and imported goods trading sector, does not match the classical theoretical description. Option d focuses on the service and informal sectors, which are important but not the core of the original dual economy concept. Option e refers to public sector enterprises and private banks, which again do not capture the fundamental distinction between traditional and modern sectors in development models.

Common Pitfalls:
Candidates sometimes think that dual economy simply means public versus private sector or formal versus informal sector. While those are different dichotomies, the classical term "dual economy" in development theory specifically refers to the coexistence of a traditional agricultural sector and a modern industrial sector. Recognising this specific terminology helps answer similar questions correctly.

Final Answer:
Traditional agricultural sector and modern industrial sector together form the mixture commonly described as a dual economy in the context of countries like India.