An OECD report highlights India's emergence as a key player in global manufacturing supply chains. This growth comes despite Indian firms receiving less government support and subsidies compared to their highly-supported Chinese counterparts.
China's Substantial Government Support
Chinese companies continue to receive substantially higher levels of government support than firms in many other economies, including those in India, an OECD report said."Industrial firms based in China receive more subsidies than their competitors based everywhere else. Between 2005 and 2024, Chinese firms received on average three to eight times more government support than firms based in the OECD," the report said. It added that "these subsidies were also considerably higher than the support received by firms based in non-OECD economies such as Brazil, India, and Indonesia."India's Growing Role in Global Manufacturing
Despite the difference in subsidy support, the OECD noted that India is playing a growing role in global manufacturing and industrial supply chains.Aerospace and Defence
According to the report, the aerospace and defence industry, which has traditionally been dominated by companies from North America and Western Europe, is becoming more diversified as demand rises across the Asia-Pacific region and Gulf countries."China, India, Japan, and Korea have also taken on a more important role in the aerospace global supply chain, first as innovation-driven component suppliers but also increasingly as OEMs themselves," the report stated.Industrial Materials Manufacturing
The OECD also highlighted India's growing presence in industrial materials manufacturing. It noted that while companies based in Europe, Japan and the United States historically dominated industries such as glassmaking, advanced ceramics and high-performance refractories, the balance has shifted in recent decades."Since the 2000s, Asia, and more specifically China and India, have taken the lead as both global producers and consumers across many of the subsegments," the report said.The report attributed this shift to factors including a construction boom, lower production costs and changes in business strategies by companies in OECD economies.Heavy Machinery and Steel
India was also identified as a significant producer in the heavy machinery sector. The OECD noted that while major heavy machinery manufacturers have traditionally been based in OECD countries, several Chinese firms have gained sizeable market share over recent decades. At the same time, the report said there are "significant producers based in other emerging and developing economies such as India."In the steel sector, the report said the largest players are based in China, India and OECD countries. However, China remains the dominant force globally. According to the OECD, Chinese firms accounted for 47 per cent of global steelmaking capacity and 49 per cent of total steel revenue covered in the OECD MAGIC database in 2024.The report suggests that while China continues to benefit from substantially higher state support and larger market share in several industries, India is steadily strengthening its position in global manufacturing and industrial supply chains across multiple sectors. (ANI)(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)Add Asianet Newsable as a Preferred Source
