An Organisation for Economic Co-operation and Development (OECD) report revealed that the Indian firms got substantially less government support compared to their Chinese counterparts during 2005-2024.
The OECD MAGIC Database of Industrial Subsidies calculates what firms actually receive and not what governments disclose.
It covers 525 of the world's largest manufacturers indulged in 15 key sectors between 2005-2024, through three parameters: grants, income-tax concessions, and below-market borrowings (cheap state-bank loans).
"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 intergovernmental body comprising 38 mostly advanced economies that works to promote economic growth, trade, investment, and policy coordination among member countries.
Its members include the US, the UK, Canada, Germany, France, Italy, Japan, South Korea, and Australia.
The report also said that around 22 per cent 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 per cent of their global market share gains can be explained by the subsidies received, it added.
Further, World Trade Organisation members making no subsidy notification rose from 26 (1995) to 117 (2025) -- from 23 per cent to 70 per cent -- eroding trust in global markets, it said.
India is also a major clean player in several covered sectors such as steel, cement, fertilisers, heavy machinery, and glass/ceramics.
With inputs from PTI
