INDIA-ITALY RELATIONS

India and Italy share a dynamic partnership that spans political, economic, defense, and strategic domains, with cooperation steadily strengthening in recent years. Both nations have elevated their relationship to a Strategic Partnership, marked by shared interests in multilateral engagement and regional stability.

Major Areas of Cooperation Between India and Italy

  1. Political Relations
    • Regular exchanges at political and official levels.
    • Indian PM visited Italy in October 2021 for the G20 Summit.
    • Italian PM made her first state visit to India in March 2023, as the guest of honour at the Raisina Dialogue.
  1. Economic Relations
    • Italy is India’s 4th largest trading partner in the EU.
    • Bilateral trade reached US$ 14.25 billion in 2022-23, with a trade surplus for India.
  1. Defence Relations
    • The India-Italy Military Cooperation Group (MCG) enhances defence collaboration.
    • In 2023, both nations signed a defence cooperation agreement covering security policy and industrial cooperation.
  1. Strategic Relations
    • The relationship was upgraded to a Strategic Partnership in March 2023.
    • Focus on the connection between the Indo-Pacific and Mediterranean, with Italy acting as a bridge between the regions.
    • Italy’s withdrawal from the Belt and Road Initiative aligns with India on global connectivity.
  1. Multilateral Engagement
    • Italy supported India’s entry into the Wassenaar Arrangement and Australia Group.
    • The Blue-Raman project will enhance digital connectivity between the Mediterranean and Indian Ocean.
    • Italy backs India’s initiatives like the International Solar Alliance (ISA), India-Middle East-Europe Economic Corridor (IMEC), and the Global Biofuels Alliance (GBA).

Challenges in India-Italy Relations

  • Low Trade: India and Italy, despite having historical trade ties dating back to the Roman era have relatively low current volume of trade and investment.
  • Trust deficit due to earlier issues:
  • Italian Mariners’ case: The case sparked a conflict over legal jurisdiction and functional immunity, which ended only in 2020 with the verdict of the Permanent Court of Arbitration.
  • Agusta Westland helicopter scandal: The defence firm owned by Italian company Leonardo was accused of bribery, resulting in India cancelling the procurement deal and banning Leonardo from the Indian defence market in 2015.
  • Unrealized Alliance: In 2021, the India-Italy-Japan trilateral partnership was launched yet it has not been operationalised.

Way Forward

  1. Economic Partnership
    • Strengthen trade ties, increase trade volume, explore new investment opportunities, and promote deeper economic cooperation.
  1. Strengthening EU-India Partnership
    • A potential India-EU trade pact could boost two-way trade between Italy and India, while enhancing the broader EU-India relationship.
  1. Shared Global Agenda
    • Collaborate on multilateral issues, working together to shape and endorse a new global agenda.
  1. Culinary Exchanges
    • Promote culinary heritage through food festivals and events, blending Italian and Indian cuisines, with pasta, pizza, and Indian spices bridging cultural flavors.

Despite challenges, India and Italy’s relationship is set for continued growth through expanded economic ties, collaboration in global forums, and even cultural exchanges. By embracing a shared vision for connectivity and cooperation, both countries can deepen their partnership on the global stage.

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