ISSUE 0 — SEPTEMBER 2026
The first structured analysis of the bilateral economic relationship between
Italy and India
Trade and investment data, business mapping, and sectoral analysis to distinguish established economic activity from emerging opportunities.
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ABSTRACT
The inaugural issue of the observatory
The inaugural issue of the Italy–India Economic Observatory establishes a structured foundation for understanding the economic relationship between Italy and India. Developed by IICCI, the Observatory integrates trade and investment data, business mapping, and sectoral analysis to distinguish established economic activity from emerging opportunities.
The relationship is underpinned by a strong manufacturing base, an expanding range of offerings for consumer markets, and growing cooperation in strategic technologies. However, its development is not uniform: trade, investment, and corporate presence need to be analysed separately before drawing conclusions about the overall trajectory.
An expanding yet rebalancing trade
€ 14.23
Billion
€ 5.50
Billion
€ 8.72
Billion
€ 3.2
Billion
Total Italy–India trade in the year 2025
Italian exports to India has increased (+7.4% vs. 2024)
Italian Imports from India (−4.1% vs. 2024)
Bilateral trade deficit is narrowing
Figure 1. Italy–India Trade in Goods, 2020–2025 (€ billion)
Source: Eurostat/ISTAT. Values in billions of euros.
Among the five selected European suppliers, Italy recorded the strongest export growth to India in 2025. Italy’s recent momentum coexists with a persistent participation and scale gap that warrants examination at the product and sector levels.
Investment and business presence
€ 6.42
Billion
€ 350 Million
1,057
102
Italian FDI in India
Indian FDI in Italy
Italian companies in India
Indian companies in Italy
The Observatory recommends developing these mappings into a dated bilateral business registry and consulting established investors on their expansion plans, supplier requirements, research interests, skills needs, and recurring operational challenges.
BILATERAL OPPORTUNITY
Three areas of bilateral opportunity
The report examines cooperation across three broad sectors.
Advanced Technologies
Space, Aerospace & Defence, Environmental Transition, and Energy Transition: the priority is to move from institutional cooperation to technically defined projects, with promising areas including satellite systems, aerospace, water reuse, renewable energy, energy storage, and industrial decarbonisation.
Manufacturing
The most established link between the two production systems. Italian exports of machinery to India exceeded €2.1 billion in 2025. Focus areas include machinery upgrades, supplier development, joint engineering, and investment..
Consumer Goods
Diversified opportunities across fashion, furniture and design, food, wine, cosmetics, and sports. Market development through defined buyer communities: retailers, architects, hospitality, professional beauty, and sports facilities.
Across all three areas, the report recommends moving beyond general promotional activities towards qualified projects, buyer requirements, industrial trials, and lasting business relationships.
NEXT PHASE
Five priorities for the next phase
1
Space, Aerospace and Defence
Follow up on established relationships by identifying key technical objectives and qualification pathways.
2
Manufacturing Partnerships
Develop partnerships around machinery, food technologies, automotive requirements, supplier development, and joint manufacturing.
3
Consumer Market
Build market presence through contract furniture and selected channels in professional beauty, hospitality, food, and wine.
4
Investor Expansion
Support the expansion of Italian investors in India and Indian investors in Italy.
5
Energy and Environmental Technologies
Develop partnerships around renewable energy integration, industrial water reuse, and waste recovery.
Progress should be measured through technical assessments, qualified projects, commercial trials, implementation, and lasting business relationships and not by the number of meetings.
MARKET ACCESS
Market Access and the EU–India Free Trade Agreement
The report examines tariffs, standards, certification, testing, registration, and labelling requirements affecting bilateral business. As of the editorial cut-off date of 11 September 2026, negotiations on the EU–India FTA had concluded, but the agreement had not yet entered into force.
Companies should prepare by verifying customs classifications, current tariffs, rules of origin, regulatory requirements, and market access pathways. The recommended approach is to build commercially viable operations under current conditions and model any future tariff benefits as a separate scenario.
MONITORING PLATFORM
A continuous monitoring platform
A dated bilateral business registry
Selective monitoring of sectors and projects
Periodic accredited sector updates
Controlled, versioned updates on trade and investment
Evidence on recurring market access barriers
Follow-up on which initiatives progress, stall, or are abandoned
The Observatory’s central proposition is that the bilateral relationship should be developed through evidence, selective engagement, and follow-through. Its objective is not merely to describe the economic potential, but to identify where companies, institutions, and specialised partners can convert that potential into actionable projects and lasting cooperation.
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