Part 6/10:
Foreign direct investment (FDI) played a critical role in this economic journey. Deng Xiaoping pioneered the establishment of Special Economic Zones in the late 1970s, fostering an inviting environment for foreign firms with favorable regulations and infrastructure. This strategic move led to a dramatic increase in China's FDI inflows. In contrast, India's FDI surge would only unfold after its 1991 reforms, where it attempted to liberalize the economy but faced challenges due to bureaucratic hurdles and a slower political reform pace.