will now have to wait for a few years. table 2 : sources of growth : india, china and east asia 1978 - 2004 growth ( per cent per annum ) period country / region china india output 1978 - 1993 contribution to growth ( percentage points ) physical educafactor capital tion productivity 3. 2 0. 2 3. 8 1. 3 0. 4 1. 6 9. 3 5. 4 employment 2. 0 2. 0 output / worker 7. 3 3. 3 china india 8. 9 4. 5 2. 5 2. 1 6. 4 2. 4 2. 5 1. 0 0. 2 0. 3 3. 6 1. 1 1993 - 2004 china india 9. 7 6. 5 1. 2 1. 9 8. 5 4. 6 4. 2 1. 8 0. 2 0. 4 4. 0 2. 3 1960 - 1980 1980 - 2003 1980 - 1993 1993 - 2003 east asia ( excl. china ) 7. 0 6. 1 7. 3 4. 5 3. 0 2. 4 2. 7 2. 0 4. 0 3. 7 4. 6 2. 5 2. 2 2. 2 2. 6 1. 8 0. 5 0. 5 0. 6 0. 5 1. 2 0. 9 1. 4 0. 3 1978 - 2004 source : bosworth and collins ( 2007 ). there has been a good deal of academic discussion on the nature of growth in east and south east asia, particularly in the aftermath of the financial crisis of 1997. one view to emerge was that the high growth experienced by this region in the 1970s and 1980s was based on extensive capital investment, and that there was little innovation and productivity growth in these countries during that period. this is somewhat different from the more recent growth experiences of china and india. growth in both china and india has been accompanied by significant productivity growth ( table 2 ). what is notable is that the growth in capital investment has been very high in china, in contrast to that in india, while employment growth has been comparable. we can also observe that the pace of productivity growth picked up significantly in india in the 1990s, after the advent of economic reforms. india has indeed been very economical in use of capital and therefore the growth in productivity has been relatively high in india since the mid - 1990s. the record of the rest of asia has not been as good with regard to productivity growth. it is important to speculate on the

awareness of basic financial products. some of the steps that have been taken by the reserve bank and other stakeholders to promote financial literacy in india are as under : • outreach visits by top executives of reserve bank of india to remote villages : the objective of these visits is to understand the ground level position, spread awareness about benefits of being connected to the formal financial system and disseminate information about the functioning of rbi. • rbi website – a link on financial education in the rbi website, containing material in english, hindi and 11 vernacular languages, which includes comic books on money and banking for children, films, messages on financial planning, games on financial education and link for accessing the banking ombudsman scheme. • awareness – distributing pamphlets, comic books, enacting plays and skits, arranging stalls in local fairs, exhibitions, participation in information / literacy programmes organized by press. books on financial planning for students and new professionals have also been released. • financial literacy centres ( flcs ) have been opened by various banks with focus on the spread of financial literacy, to create awareness about financial products and provision of counseling facilities for customers of banks. there were 575 flcs in the country as on september 30, 2012. bis central bankers ’ speeches • conducting town hall events across the country, including in tier ii and smaller cities, bringing together commercial banks and other stakeholders. • newsibition on mint road milestones has become the focal point for financial literacy activities with all activities relating to financial literacy coalescing at a common forum at each centre • setting up of a monetary museum by rbi to create awareness about money and banking among general public and spread knowledge about the history of money. • use of mobile financial literacy vans by banks in the north eastern states • awareness programmes on various government sponsored self employment schemes involving bank loans and subsidy by government agencies like kvic, dics and sc / st corporations. • mass media campaign tie ups with educational institutes, financial awareness workshops / help lines, books, pamphlets and publications on financial literacy by ngos, financial market players, etc. • national and state level rural livelihood missions have large number of field functionaries for proper handholding support to large number of self help groups. • large number of websites / portals of banks / state level bankers committees disseminating information on banking services • conduct of financial literacy programmes by rural self employment training institutes in line with the “ catch them young ” strategy for our financial education initiatives, the reserve bank launched the rbi