Dyarchy was a dual form of government intended as a step toward responsible rule. Under this system, critical departments like police and finance were “Reserved” for British officials, while subjects like education and health were “Transferred” to elected Indian ministers. This arrangement was criticized by the Congress as being flawed and restrictive, as ministers had no control over the budget. However, the reforms under Chelmsford marked the first official recognition of the need for an Indian voice in governance, eventually leading to more significant constitutional changes in the 1930s.