Background <p>Transgender individuals in India continue to face systemic socio-economic exclusion despite recent notable legal recognition and policy advancements. This study introduces the concept of economic duality—the concurrent participation of transgender individuals in both mainstream employment and survival economies, such as sex work and begging. The phenomenon reflects the limitations of current inclusion frameworks which emphasize access but often overlook structural inequities, wage disparities, and social stigma.</p> Methodology <p>Using primary survey data from 335 transgender individuals in Delhi-NCR, this study employs descriptive statistics and a binary probit regression to analyse the determinants of participation in mainstream and survival economies. The model considers key demographic variables such as gender identity, age, education level, and income quintile, with marginal effects estimated and plotted for interpretation.</p> Results <p>Higher education and income levels significantly increase the probability of engagement in mainstream economies, while transgender identity is independently associated with reduced access. Conversely, low income and limited education correlated strongly with reliance on survival economies. Notably, even those in formal employment often supplement their income through informal work, reinforcing the reality of economic duality.</p> Conclusion <p>The findings, interpreted through <i>Amartya Sen’s Capability Approach</i> and <i>Queer Political Economy</i>, reveal that formal economic inclusion does not guarantee dignity, stability, or empowerment. The study advocates for structural interventions—such as affirmative hiring, wage equity, and targeted financial services—to dismantle economic duality and promote sustainable economic inclusion for transgender individuals in India.</p>