Being a regular visitor to India, I always compare China to India. You can also compare China to some of the other more populous Asian nations, such as Indonesia or Pakistan. None of these countries have witnessed the same level of economic growth as China. And regarding India, I would say that they wasted a perfect opportunity. If the corruption, bureaucracy and red tape was not there, then India would have emerged as the most preferred destination instead of China. They had the perfect conditions, such as large English speaking population, low wages, and moderate climate.
China attracted investment, because they could do away with the regulations and make it easier for the investors to set up factories. As you have mentioned, these investors brought new technology, and this enabled ordinary Chinese to setup worldclass technological startups.
I would say that India wouldn't have been the perfect place for manufacturing unless they would start doing inhumane conditions and basically work people to death.
China became like this because in the 90's the biggest hype was the fact that China made things for cents, when a thing was made for a dollar in USA, and yes India is not a rich nation neither I will accept that but you couldn't put people in factories and tell them to work for one food, yes that is what China did, many people worked all day for just ONE meal, because the nation was in so much horrible condition that even one meal was better than none and that is how this all started.
Of course, companies started to make a bit more money and eventually hired the better and more experienced workers for a bit more money, and then basically it became not so bad in china these days, still worse than west nations but not as bad as 90's. If India did that, then they would have been rich today as well, but they would be hated by everyone around the world too, now they are loved around the world.