With pending issues on marines and defence ban resolved, India and Italy relaunch ties

Contact Counsellor

Last Updated08/11/2021

The government has decided to lift its ban on the Italian defence company involved in the AgustaWestland VVIP helicopter deal just days after Prime Minister Narendra Modi’s meeting with his Italian counterpart Mario Draghi.
The ban had impacted the Navy in particular, as it is in need of an alternative supplier for “heavyweight torpedoes"".
Over the past few years, bilateral relations have been held up over the helicopter case as well as the case of the Italian marines accused of killing Kerala fishermen.

India and Italy are ancient civilizations but young states (Italy having been reunified only in 1861).
The classical languages, Sanskrit and Latin both belong to the Indo-European language family.
Peoples of these two ancient civilizations have known, interacted and traded with each other for over 2000 years. Italian port cities were important trading posts on the spice route.
The Venetian merchant Marco Polo, during his travels to the east, also travelled to India in the 13th century and wrote about his experiences.
Indian troops, serving with the British Indian Army, were active in Italy during the World War II. These included the Rajputana Rifles and Gurkha Rifles.
The 10th Indian Division took part in the East African Allied campaign against the Italians in Somaliland and Abyssinia.

Political relations between India and Italy were established in 1947. The two countries enjoy cordial relationship.
There has been a regular exchange of visits at political and official levels between both countries.

Amongst EU members-states, Italy is India’s 5th largest trading partner (following Germany, Belgium, UK and France).
Indian exports to Italy are driven by petrochemical, plastic, textile and steel. Italian exports towards India amount to 1% of Indian total import.
Italy is the 27th global supplier to India, while is the 10th market of destination of Indian exports.
Italy’s presence in India accounts for slightly less than $3 billion investment cumulatively between April 2000 and June 2018. Those investments are mostly in the automotive industry, trading, services, industrial machinery and food processing.
Main items of Indian exports to Italy are ready-made garments, leather, iron ore, motor vehicles, textiles, chemicals, gems & jewellery. Main items of import from Italy are general and special purpose machinery, machine tools, metallurgical products, and engineering items. Around 140 large Italian companies are active in India.

The Indian-EU free trade agreement has seen bumpy rides.
There have been many rounds of negotiations but nothing significant has come out. With Italian support now, this FTA is expected to be little easier to have breakthrough as it is good to have support from one of the major EU countries.
The trade between India and Italy is not quite encouraging. The annual turnover is about 8 billion US dollars in favour of India of about 1 billion US dollars. Though it is in India’s favour but there is a great potential for increasing the trade between India and Italy.

An Agreement on S&T Co-operation exists since 1978.
The Agreement envisages three yearly action plans under which a maximum of thirty joint research projects can be undertaken.
Some of the prime areas of joint research are Electronics, Biotechnology, Design Engineering Automotive Technologies, Energy, etc.

Joint Defence Committee was established in 2018 to enhance and encourage a “structured dialogue” between Indian and Italian defence firms.
Italy supported India’s “intensified engagement” with nuclear, missile and dual-use technology and substances-export control regimes like the Wassenaar Arrangement, the Australia Group, and the Nuclear Suppliers’ Group (NSG) which strengthen global non-proliferation efforts.

Italy has supported India in the anti-terrorism front. India has for a very long time globally asked the world to be more proactive and be strict against terrorist organisations especially organisation like the JeM which are based in Pakistan and are responsible for cross terrorism.
Support by Italy in this matter strengthens India’s hands in its global fight against terrorism especially when it comes to Pakistan. Today, terrorism has become a global issue and is not restricted to India only. Acknowledgment of terrorist organisation such as Al Qaida and ISIS calls upon countries to not give safe haven to the terrorist entities.
India is facing terrorist attacks whereas Italy faces influx of refugees from Syria, Yemen, Libya along with other countries in Europe. Thus, there is a rising security concern for Italy also and it is significant when such area is openly discussed.
Italy feels that this concern of cross border terrorism was raised by India for a long time and now it is being realised as a reality.
Horrific terrorist incidences happening in Europe makes one feel that may be Europe is now a little more sensitive to a country like India in matters of anti-terrorism."