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Because its a black bear and he fat
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Bears aren't massive in the part of the world that movie takes place in. All tigers are large.
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Baloo is a sloth bear which are considerably smaller than even Black Bears are
Though there are many cases of Sloth Bears being so aggressive that they can critically injure and even kill some Tigers, but Shere Khan clearly isn't a normal Tiger and Baloo is pretty lazy and doesn't have as much broad fighting experience outside of ig some boxing skills
He's also fat as fuck and isn't as violent or bloodlusted as Shere Khan
Also he was only trying to save Mowgli, he didn't care about fighting or even hurting Shere Khan