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Why is India poor? What can be done to change this?

I am looking to go beyond the obvious reason which is quality of institutions (including corruption) and infrastructure. For a nation of 1.2 billion, even if the institutions aren't that good, it should be possible to fix things, right?

I think we can learn a lot from history and evolution of distribution of wealth in the world. Look at this chart: http://2.bp.blogspot.com/-V_zsRrVZd4w/T_B-rIF6v7I/AAAAAAAAGhE/JdlSo4iwtGU/s1600/Economic+history+of+world.png

This shows a shocking shift of wealth off India in only as much as past 300 years. Caste system and all have been here since ever, so there has to be a deeper reason. Also, as much as I agree with Technology being the reason, I don't really see it as the reason, unless we want to be developed EXACTLY in the way as the west is - there CAN be multiple other ways of being wealthy - and the tech way of using minimal human capital and mechanization while may be the best for the west where humans resources are scarce, it may not be the best way for our human-capital rich society - wonder how much we can do with sooo many hands! And still, we are just struggling to feed those mouths :(

So I guess the question is calling for a critical analysis of what has brought about the condition shown in this graph, where India houses the max poor in one country: http://3.bp.blogspot.com/-cXku0S7O-N0/UA1lK_DhtbI/AAAAAAAAAgE/0FduwIJQhZ4/s1600/regional-ineq.JPG

By the way, a disclaimer here is a must on my background so that you do not think this is coming from a very narrow mind - I am not casteist, am highly educated, and am IIT B.Tech. grad - so a big promoter of tech (tech I think is awesome for me and the likes who like it, but still don't see mechanization as the solution to human state).

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  • Apr 7 2013: India's economic development is one of the fastest in the world right now. But its too late. The population is 1.2 billion which is still growing. So the 4th reason is illiteracy. Adolescents should be educated about unprotected sex.

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