India Italy Trade
India Italy Trade Agreement
Introduction
The foundation of Italy and India’s relations stand firm based on the shared principles, and values of democracy, freedom, human rights, and upholding the rule of the law. In addition, the two countries work closely to increase research & development in the field of science and technology. The main items of Indian exports to Italy are ready-made garments, leather, iron ore, motor vehicles, textiles, chemicals, and gems & jewellery.
India-Italy Trade
- The bilateral trade between the two countries was valued at US$ 14.25 billion in 2022-23.
- Italy ranks 17th in FDI inflows in India from April 2000-September 2022 with an FDI inflow of US$ 3.18 billion during this period.
- Italy is among India's top 5 trading partners in the European Union with the balance of trade in India’s favour since the early eighties.
- The Indian community in Italy (estimated at 2.5 lakh including PIOs) is the third largest community of Indians in Europe after the UK and the Netherlands.
- With a bilateral trade of US$ 16 billion in 2022, During April-January 2022-23, India's exports to Italy stood at US$ 7.15 billion, while imports aggregated at US$ 4.6 billion. Italy is India's 4th largest trading partner in the EU, after Germany, Belgium, and the Netherlands. India ranks 15th as the country of origin of Italian imports, accounting for 1.5% of Italian imports.
- Main items of Indian exports to Italy are ready-made garments, leather, iron ore, motor vehicles, textiles, chemicals, gems & jewellery. The main items of import from Italy are general and special purpose machinery, machine tools, metallurgical products, and engineering items.
Major exported items from India to Italy with amount & quantity
- India exported 161 principal commodities to Italy during FY23.
- India’s exports to Italy stood at US$ 8.69 billion in FY23.
- India’s export to Italy stood at US$ 1.72 million during April-May 2023-24.
- Major exported items from India to Italy include iron and steel (US$ 444 million), petroleum products (US$ 166 million), telecom instruments (US$ 138 million), aluminium products (US$ 87 million), products or iron (US$ 56 million), auto components (US$ 45 million), electric machinery (US$ 33 million), RMG Cotton (US$ 31 million), Coffee (US$ 30 million), and INDL Machinery (US$ 28 million).
Major imported items by India from Italy with amount & quantity
- India imported 5,290 commodities from Italy in FY21.
- Imports from Italy to India stood at US$ 5.56 billion in FY23.
- India’s export to Italy stood at US$ 1.08 million during April-May 2023-24.
- India's imports from Italy include INDL Machinery for dairy (US$ 191 million), electric machinery (US$ 68 million), residual chemical (US$ 51 million), other miscellaneous engineering items (US$ 42 million), paper & paper board (US$ 42 million), machine tools (US$ 37 million), products of iron and steel (US$ 37 million), other construction machinery (US$ 30 million), iron and steel (US$ 28 million), etc.
Recent Trends & developments
- The 8th session of the India-Italy Foreign Office Consultations was held in February 2022 in Rome where the two sides reviewed the entire gamut of bilateral relations.
- India and Italy agreed to explore the development of green hydrogen, setting up renewable energy corridors, and joint projects in the natural gas sector as the two nations sought to strengthen partnerships in the energy transition.
Trade and Investment
India ranks 19th as the country of origin of Italian imports, accounting for 1.2% of Italian imports. Around 140 large Italian companies are active in India. Some of the major Italian companies that have invested in India are FIAT Auto, Heinz Italia, FIOlA, Italcementi, Necchi Compressori, Perfetti, Lavazza, Fata Hunter Engineering, etc. The prominent Indian companies operating in Italy include Tata, TCS, Wipro, Engineers India Limited, L&T, Mahindra & Mahindra, Ranbaxy, Raymonds, etc.
Apart from this, six Italian banks have representation in India. Moreover, India's top sectors attracting FDI inflows are the automobile Industry/transportation, food processing, metallurgical industry, textiles, electrical equipment, and others.
Conclusion
The two countries enjoy a cordial relationship. There has been a regular exchange of visits at political and official levels between both countries. Apart from this, both countries enjoy a vibrant diaspora on both sides. If the India and EU sign a trade pact in the coming time, Italy and India can enjoy major two-way trade benefits.
Contacts
- Embassy of India in Italy
Address: Via XX Settembre, 5, Rome, Italy;
Telephone: 0039 064884642-3-4-5
Dr. Neena Malhotra (Ambassador) - amb.rome@mea.gov.in
Smt. Neeharika Singh (Deputy Chief of Mission) - dcm.rome@mea.gov.in - Embassy of Italy in India
Address: 50 E Chandragupta Marg, Chanakyapuri, New Delhi – 110 021;
Mobile: +91 – 11 – 26114355;
Email: ambasciata.newdelhi@esteri.it
Mr. Vincenzo de Luca (Ambassador)
Secretary of the Head of Mission - segramb.newdelhi@esteri.it
Secretary of the Deputy Head of Mission - ambasciata.newdelhi@esteri.it
Partners
