OECD Says Chinese Firms Drew 3-8 Times More Aid Than Indian Peers in 2005-2024
Updated
Updated · Millennium Post · Jun 7
OECD Says Chinese Firms Drew 3-8 Times More Aid Than Indian Peers in 2005-2024
1 articles · Updated · Millennium Post · Jun 7
Summary
Indian firms received far less state support than Chinese counterparts from 2005 to 2024, with the OECD estimating Chinese companies got three to eight times more aid than firms in India and other non-OECD economies.
The finding comes from the OECD’s MAGIC database, which tracks actual support received by 525 large manufacturers in 15 sectors through grants, tax breaks and below-market loans rather than relying on government disclosures.
About 22% of global market-share gains by expanding firms between 2005 and 2023 can be explained by subsidies, the report said, rising to nearly 60% for Chinese firms.
The OECD said the gap helps explain China’s manufacturing competitiveness and warned subsidy transparency is worsening, with WTO members making no subsidy notifications rising to 117 in 2025 from 26 in 1995.