India's Rise: Shaping Global Supply Chains Amidst Unequal Support
India is gaining prominence in global manufacturing supply chains despite receiving less government support compared to China, says the OECD. The aerospace, industrial materials, and heavy machinery industries are witnessing rising Indian influence, highlighted by innovation and strategic shifts in supply chain dynamics.
The Organisation for Economic Co-operation and Development (OECD) has recognized India's ascent as a pivotal force in global manufacturing supply chains, despite Indian firms receiving far less governmental support than their Chinese counterparts.
Between 2005 and 2024, the report highlights that Chinese industrial companies received three to eight times more government support, significantly surpassing subsidies provided to firms in other economies, with India receiving notably lower assistance.
Nonetheless, India's expanding role is evident in sectors like aerospace and industrial materials, traditionally led by North American and European firms. The OECD attributes this shift to factors such as a construction boom, reduced production costs, and evolving business strategies in OECD countries.
Moreover, the report identifies India as a growing player in the heavy machinery and steel sectors. While China's dominance continues with substantial state support, India's strategic moves indicate a steady strengthening of its global manufacturing and supply chain presence across various industries.
(With inputs from agencies.)
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