Font size:
Print
India-Italy Relations
Context:
In this age of polycrisis, Italy and India share not only common interests but also face joint challenges in the Indo-Mediterranean region. Looking at the vitality of the region India- Italy must collaborate closely, ensuring that the Indo-Mediterranean region remains free, open, and prosperous for global trade, digital connectivity, and regional security.
Importance of Indo- Mediterranean Region:
- Importance of the Indo-Mediterranean for Global Trade:The Indo-Mediterranean region is vital for global commerce, particularly for Italy, the world’s sixth-largest exporter. Stability in the area is crucial for maintaining the flow of goods and services.
- Digital Connectivity: Blue-Raman Cables:The upcoming Blue-Raman submarine cables will link Genoa and Mumbai, enhancing digital connectivity between Europe and Asia.
Issues Facing the Region:
- Security Challenges:Piracy in the Red Sea and conflicts in Gaza and Lebanon pose threats to regional stability, disrupting both maritime trade and security.
- Impact of Russia’s War in Ukraine:Russia’s war in Ukraine has affected global agricultural and oil trade, crucial for the energy and food security of both Italy and India.
India- Italy Relations:
Geopolitical Relations:
- Multilateral Cooperation: Italy supports India’s bid for a permanent seat at the UN Security Council and reforms in global governance.
- Both nations collaborate in the G20, UN, and WTO, promoting a multipolar world order.
- Italy also backs the India-Middle East-Europe Economic Corridor (IMEC), enhancing trade and connectivity between these regions.
- Italy is the first non-tropical country to join ISA, CDRI, India-Middle East-Europe Economic Corridor (IMEC), Global Biofuels Alliance (GBA) and IPOI(Indo- Pacific Ocean Initiative).
- Regional Engagement: In West Asia and Africa, both countries support development and stability through Italy’s Mattei Plan and India’s outreach, focusing on infrastructure and economic development in East Africa.
The Mattei Plan: Italy’s Engagement in Africa
Launched during the Italy-Africa Summit in January, the Mattei Plan mobilises €5.5 billion in public investments and aims to implement development projects in Egypt, Ethiopia, Kenya, and Mozambique—all adjacent to the Indo-Mediterranean area.
Geoeconomic Relations:
- Bilateral Trade and Investment: Trade between India and Italy exceeds $10 billion annually, covering sectors like machinery, textiles, and chemicals.
- Italian investments in India’s renewable energy and manufacturing sectors, especially through the “Make in India” initiative, are significant.
- Strategic Connectivity: The Blue-Raman submarine cable will enhance digital links between Genoa and Mumbai, boosting tech and economic ties.
- Defense Industry Cooperation: Italian firms like Fincantieri and Elettronica are partnering with Indian companies to co-develop defence systems, contributing to India’s defence manufacturing and self-reliance goals.
Geostrategic Relations:
- Maritime Security: Italy’s involvement in EU-led naval operations, such as EUNAVFOR ASPIDES, complements India’s maritime security efforts in the Indian Ocean. Joint naval exercises like PASSEX bolster interoperability.
- Defence Cooperation: The 2023 Defense Cooperation Agreement covers intelligence sharing, joint defence production, and maritime domain awareness, strengthening defence ties.
- Engagement in Africa and West Asia: Italy’s growing naval presence aligns with India’s interests in the Indian Ocean and Africa, focusing on securing trade routes and regional stability.
Challenges in India- Italy Relations:
- Historical Diplomatic Strains: The 2012 Enrica Lexie incident, involving Italian marines accused of killing Indian fishermen, strained ties for years, leaving a legacy of mistrust, especially in sensitive areas like defence.
- Limited Trade Volume: Despite growing economic ties, bilateral trade—around $10 billion annually—lags behind potential due to regulatory hurdles and economic constraints on both sides.
- The EU-India Free Trade Agreement negotiations have progressed slowly due to differing priorities, regulatory frameworks, and economic interests. As part of the EU, Italy aligns with EU trade policies, which at times diverge from India’s stance, further complicating the deal.
- Defense Sector Hurdles: The AgustaWestland scam damaged trust, and issues around technology transfer and intellectual property have slowed co-production and defence collaboration.
- Geopolitical Misalignments: Differing stances on the Russia-Ukraine conflict and China’s influence, particularly Italy’s past involvement in the Belt and Road Initiative, create challenges in aligning global strategies.
- Geostrategic Competition: Italy’s expanding naval presence in the Indian Ocean and competition with other EU nations for India’s strategic partnership in defence and infrastructure pose further challenges, given the historical strength of Indo-French and Indo-German relations.
