1.6    Developmental Path based · Part 2

destroyed its resource base completely. - - . . AM - - . . AM Gross Domestic Product and its Growth: an Introduction The public sector was given significant importance, Private companies and industries were subject to strict regulations and standards. It was believed that the government was the sole protector of the people and would work towards social welfare. India has sustained rapid growth of GDP for most of the last two decades leading to rising per capita incomes and a reduction in absolute poverty. Per capita incomes have doubled in years. In Per capita income, placing India comes just inside the Middle Income Country category. Life expectancy at birth is years and % of children under are malnourished. The literacy rate for the population aged years and above is only % compared to a % figure for lower middle income countries. India has followed a different path of development from many other countries. Factors supporting development of India A fast-growing population of working age is an important factor. There are million Indians under the age of and the demographics look good for India's growth in the next twenty years at least. India is experiencing demographic transition that has increased the share of the working-age population from percent to percent over the last two decades. India has a strong legal system and many English-language speakers. This has been a key to attract inward investment from companies such as those specialising in Information Technology. For example witness the rapid emergence of Bangalore as a hub for global software businesses. External economies of scale have deepened their competitive advantages in many related industries.