Indian traders doing this for a while since the introduction of 30% crypto tax but ever since FIU hammered international exchanges to shut down their operations until they comply all the regulations framed the traders can risk their trading capital to make small money or just choose the Indian exchanges with exorbitant tax rates.

Arbitrage requires huge capital and someone trusted from another country then as you said it's possible to make tons of money from buying on international exchange then move to Indian exchange, sell it for INR then wire INR to the trusted person to buy BTC and repeat the process infinitely.