India is not the only developing democracy. Think of all your Latin American brother except Cuba. Even most African nations. Will all of those be developed some day? Corruption is the problem that Chinese hate most, Still many young Chinese believe that democracy will cease corruption. While so many cases have proved it dont not.I have read the Legatum Prosperity Report but their ranking takes individual freedom and other things into consideration. I think its somewhat deceptive to imply that India is doing better than China based on this report.
To be frank, Foreign investors couldnt care less about how much freedom China gives its people, or how many poor protesting farmers get killed in riots, or how many Falun Gong practitioners or Uyghur Muslims China throws into prison every year.
The only thing that foreign investors want is a stable political environment and a good secure manufacturing "supply chain" that will keep their factories running at full speed and turning out fat profits for them. This is why China has received so much more FDI investment than India
I think most Indians will admit that China has moved far more people out of abject poverty in the last 40 years than India. But the reason they were able to do this is because they adopted a ruthless Communist model where the "end always justifies the means".
Indians would never have accepted such a system, no matter what the rewards were going to be. So India will be slower in reaching a developed nation status but that was the only course that India could take.