Alan Greenspan: What is fascinating is that it is not democracy per se that is important but democracy with the protection of property rights. The irony is that China, a communist state, is doing this. There is no democracy in China whereas there is in India but India remains enamoured with Fabian socialism. There is an anticapitalist culture in government that makes it difficult to do business deals in a number of areas.

The Fabian tradition is being unwound but it is deeply ingrained. However it must be unwound if India is to exploit its advantages (for example its demographics are far more advantageous than those of ageing China).

For capitalism property rights are the end of the road. And most investors thank that capitalism is safer in China than India. It sounds ridiculous given their political heritages but it is true. However it cannot continue indefinitely. India's bureaucracy has to dismantle itself and China has to become more liberal.