India Italy Trade
Italy is India's 3rd largest trading partner in export in EU, after Germany and Netherland and 4th largest trading partner in import after Germany, Belgium and France.
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 & and 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 is the 18th largest foreign investor in India with a cumulative FDI inflow of US$ 3.40 billion from April 2000-September 2023.
- 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.
- Italy is India's 4th largest trading partner in EU, after Germany, Belgium, and The Netherlands. The bilateral trade between India and Italy has been growing strongly in the last two years following the economic recovery post Covid-19 pandemic.
- 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.
- 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 4,828 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$ 5.28 billion during April-November 2023.
- 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 exported items from India to Italy include Engineering Goods (US$ 2.36 billion), Electronic Goods (US$ 522 million), Petroleum Products (US$ 396 million), Organic and Inorganic Chemicals (US$ 302 million) and Others (US$ 255 million) during April-November 2023.
Major imported items by India from Italy with amount & quantity
- India imported 4,925 commodities from Italy in FY23.
- Imports from Italy to India stood at US$ 5.56 billion in FY23.
- India’s import to Italy stood at US$ 4.05 billion during April-November 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.
- India’s imports from Nuclear Reactors (US$ 1.58 billion), Electrical Machinery and Equipment (US$ 287 million), Organic Chemicals (US$ 225 million), Plastic articles (US$ 144 million) and Iron and Steel (US$ 141 million) during April-November 2023-24.
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.
- Prime Minister Mr. Narendra Modi has made his first ever visit to Italy to attend the G20 Leaders’ Summit in October 2021.
- In March 2023, The Prime Minister of the Italian Republic, H.E. Ms. Giorgia Meloni has made her first ever visit to India. Following high level exchange of visits, the bilateral relationship of the two countries was elevated to the level of strategic partnership.
- In March 2023, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation Mr. Antonio Tajani and Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Mr. Piyush Goyal, co-chaired a Business Forum in New Delhi, which was attended by approx. 40 leading Italian and Indian Companies.
- Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Mr. Piyush Goyal visited Italy from April 12 - 14, 2023 accompanied by a high-level business delegation from CII. During the visit in addition to bilateral meetings, they also participated in a high-level CEO interaction, which was co-chaired by both Mr. Antonio Tajani and Mr. Piyush Goyal. Both countries have committed to strengthen their cooperation in sectors such as agriculture, renewable energy, automotive, space, defence, IT and ITeS etc.
Trade and Investment
India ranks 19th as the country of origin of Italian imports, accounting for 1.2% of Italian imports.
More than 600 Italian companies are already present in India on sectors such as fashion and garments, textile and textile machinery, automotive and automotive components, infrastructure, chemicals, energy, confectionery, insurance, etc. They 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.
Indian investment in Italy is estimated at around US$ 400 million. Indian companies in Italy are mainly in IT, pharma, electronics, manufacturing, and engineering sectors.
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); E-mail - amb.rome@mea.gov.in
Mr. Amararam Gurjar (Deputy Chief of Mission); E-mail - 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; E-mail - segramb.newdelhi@esteri.it
Secretary of the Deputy Head of Mission; E-mail - ambasciata.newdelhi@esteri.it
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