The recent visit of Italian Prime Minister Giorgia Meloni to India marked a crucial moment in bilateral relations in the field of industrial partnership enabling marriage between manufacturing sectors, including defence industrial complex.

India is the world’s fifth-largest economy, with a GDP close to $3 trillion in 2022, and, according to some analysts, it will become the world’s third-largest economy by 2027. With a young and growing population of more than 1.4 billion, India becomes, in 2023, the most populated country in the world. Moreover, 107 Indian “unicorns” witness the vibrant side of the economic Indian system.

On the other hand, Italy is the second manufacturing power in Europe, showcasing the excellence of advanced manufacturing all over the world, especially in India. Italian companies have a unique innovative capacity, often appreciated by Indian partners.

Above all, our bilateral trade has dramatically grown over the last two years, reaching unprecedented levels and recording a more than encouraging milestone of 14.9 billion euros in 2022, with a 42% growth over 2021, which already recorded a record year (10.5 billion euros, well above pre-Covid levels). Italian imports, amounting to 6.7 billion euros, represent the main component of the bilateral trade flow, with a percentage change of +52.4% over the previous year. Exports to India have been also growing, with +24.2% over 2021. This makes our trade with India the second biggest one for Italy in the Indo-Pacific region.

In the framework of the reconfiguration process of global value chains, Italy is increasingly looking to India as an important partner in pursuing its strategy of supply chain consolidation and diversification.

The Joint Declaration signed by Prime Minister Meloni and Prime Minister Modi outlines the contours of the strategic partnership, by deepening bilateral collaboration in sectors such as energy transition, digital connectivity and advanced manufacturing and opening it up in others, such as defence. Italian and Indian companies can thus count on a wide-ranging and updated policy framework, in the wake of the one provided by the Action Plan 2020-2024.

In the defence sector, the expectation on both sides for an effective revival of cooperation is alive, both through joint training initiatives and from the industrial point of view, where Italy is ready to showcase its advanced technological solutions.Interest in India from our industry is more tangible than ever. This was confirmed by the wide and qualified participation of our companies in the business roundtable, chaired by deputy prime minister and foreign minister Antonio Tajani and Indian minister Goyal, during the visit. Moreover, it has been evidenced by the agreements signed by some of our important companies with Indian partners, in the context of the visit.

As of today, there are about 700 Italian companies in India, of which 300 have production plants employing about 50,000 people. Our goal will be to encourage an increase in the presence of Italian companies in India, as also emphasised by our minister Tajani and wished by minister Goyal, by promoting “friend-shoring” initiatives and new joint ventures as well.

Moreover, they can rely on a structured financial support mechanism, namely provided by SACE and SIMEST. With its Push Strategy, SACE has in India the largest exposure in Asia in terms of transactions.

SIMEST is the export and internationalisation hub of the CDP Group (the Italian Development Bank) which brings together all the instruments to support Italian companies wishing to compete and grow in India. It operates through loans aimed at internationalisation, export credit support and capital investments.

(The writer is Italy’s Ambassador to India)