Chinese firms got 3–8x more government support than Indian peers: OECD

New Delhi: Indian firms received significantly lower government support than their Chinese counterparts during 2005-2024, according to an OECD (Organisation for Economic Co-operation and Development) report.

OECD MAGIC Database of Industrial Subsidies measures what firms actually receive (not what governments disclose), covering 525 of the world's largest manufacturers across 15 key sectors over 2005-24, through three instruments: grants, income-tax concessions, and below-market borrowings (cheap state-bank loans).

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"Between 2005 and 2024, Chinese firms received on average three to eight times more government support than firms based in the OECD, a conservative estimate. These subsidies were also considerably higher than the support received by firms based in non-OECD economies such as Brazil, India, and Indonesia," the report said.

This reflects one of the key factors behind China's manufacturing competitiveness.

The OECD is an inter-governmental body comprising 38 mostly advanced economies that works to promote economic growth, trade, investment, and policy coordination among member countries. It members include the US, the UK, Canada, Germany, France, Italy, Japan, South Korea, and Australia.

The report also said around 22 percent of the global market share gains of firms that grew between 2005 and 2023 can be explained by the subsidies they received.

For Chinese firms, almost 60 percent of their global market share gains can be explained by the subsidies received, it added.

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Further, World Trade Organization members making no subsidy notification rose from 26 (1995) to 117 (2025) from 23 percent to 70 percent eroding trust in global markets, it said.

India is also a major clean player in several covered sectors such steel, cement, fertilisers, heavy machinery, and glass/ceramics.

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