- India's pursuit of capturing the 'China+1' global manufacturing shift requires looking inward at state-level structural and regulatory reforms rather than solely relying on national-level trade protectionism or macro policies. - Disparities among Indian States are massive; while a few states perform well, many lag in infrastructure, logistics, power costs, and ease of doing business, hindering pan-India manufacturing competitiveness. - Sub-national competitiveness, cooperative and competitive federalism, labor reforms, land acquisition transparency, and regulatory ease at the state and local levels are vital to scale up manufacturing. - To compete with nations like Vietnam and Bangladesh, Indian states need to build robust plug-and-play industrial ecosystems and lower compliance burdens. **Introduction** The article discusses how India can leverage the 'China+1' global supply chain diversification strategy by focusing on internal structural reforms at the state level. It argues that national policies alone are insufficient; states must improve infrastructure, reduce logistics and power costs, ease regulatory burdens, and foster competitive federalism to attract global manufacturing investments. **Core Issue and Detailed Points** - India's pursuit of capturing the 'China+1' global manufacturing shift requires looking inward at state-level structural and regulatory reforms rather than solely relying on national-level trade protectionism or macro policies. - Disparities among Indian States are massive; while a few states perform well, many lag in infrastructure, logistics, power costs, and ease of doing business, hindering pan-India manufacturing competitiveness. - Sub-national competitiveness, cooperative and competitive federalism, labor reforms, land acquisition transparency, and regulatory ease at the state and local levels are vital to scale up manufacturing. - To compete with nations like Vietnam and Bangladesh, Indian states need to build robust plug-and-play industrial ecosystems and lower compliance burdens.