Business Standard
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). "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 t
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