In light of the global shift towards the China-plus-one strategy, Arvind Virmani, a prominent economist and former member of the NITI Aayog, argues that India must implement significant reforms to attract foreign investments. He emphasizes the need for an overhaul of the tax system, streamlined single-window clearances, and the establishment of Free Trade Agreements (FTAs) with developed nations. Despite progress through initiatives like the Production-Linked Incentive (PLI) scheme, Virmani points out that high transition costs and bureaucratic inefficiencies remain major deterrents for companies looking to move operations from China to India.

Virmani stresses that India does not need to replicate China's massive manufacturing scale but can compete effectively by optimizing its operations with fewer resources. He also defends India's decision to withdraw from the Regional Comprehensive Economic Partnership (RCEP), asserting that it would have exposed local manufacturers to unnecessary competition without clear advantages. Instead, he advocates for FTAs with developed economies such as the US and EU, which would leverage India's demographic strengths and provide access to technology and capital. These reforms and agreements are crucial for integrating India into global supply chains and enhancing its manufacturing capabilities.