China Plus One strategy involves businesses diversifying their production and supply chains into other countries. This approach is driven by various factors, including the rising cost of production due to high labor expenses in China, the need for risk diversification, regulatory hurdles caused by policies like Beijing’s strict zero COVID stance and stringent data privacy laws, and the attraction of a talent pool and innovation in developing markets with a demographic dividend.

For India, embracing this strategy carries several advantages. It enables the efficient utilization of India’s demographic dividend, taps into a large consumer market, enhances infrastructure, and upskills the workforce. Additionally, it promotes foreign direct investment (FDI) and domestic manufacturing, positioning India as a global superpower.

However, India faces numerous challenges in implementing this  strategy. These challenges include infrastructural deficiencies, bureaucratic red tape, skill mismatches, policy implementation issues, trade barriers, intellectual property concerns, cultural diversities, and competition from other emerging markets like Vietnam. Overcoming these hurdles will be crucial for India to fully leverage the China Plus One strategy’s potential benefits.