Hi this would solve your problem
Index.html
<html lang="en" ng-app='myApp'>
<head>
<title>My AngularJS App</title>
<script type="text/javascript" src="https://cdnjs.cloudflare.com/ajax/libs/angular.js/1.3.15/angular.min.js"></script>
<!-- Modules -->
<script src="app.js"></script>
</head>
<body ng-controller ='MainController'>
<div>
<select class="form-control" >
<!-- <option ng-value= "{{item}}" >{{item}}</option> -->
<option ng-repeat="option in type" value="{{option.value}}" ng-selected="type.value == option.value">{{option.value}}
</option>
</select>
</div>
</body>
And your JS should be like this.
var myApp = angular.module('myApp', []);
myApp.controller('MainController', ['$scope',
function($scope) {
$scope.type = [{
"id" : 1,
"value" : "Inside"
},{
"id" : 2,
"value" : "Outside"
}];
}
])