The economy of Italy and India
This name is often discussed in Italy and India. This name continues to appear in Indian political circles as well. At the moment, Prime Minister Narendra Modi is also in Italy, where he has gone to participate in the G7 summit. Apart from all this, whenever the name of Italy appears among common people, the first image that comes to their mind is a wine with a unique taste and a luxury car like a Ferrari that is fast.
From wine to Ferrari, if we look at the level of the economy, according to Forbes, Italy is the ninth economy in the world. It is the third largest economy in Europe, whose reins are in the hands of Prime Minister Georgia Meloni. After all, how has Italy achieved this milestone in its economy?
bastion of the Italian economy
Italy’s economy depends mainly on tourism. Rome, the holiest place for Christians, is part of Vatican City, a separate country. But every year millions of tourists come here through Italy. All these tourists strengthen Italy’s economy.
Whether it is the ‘Tower of Pisa’, one of the 7 wonders of the world, or the fashion capital Milan or the city of Venice from the movie ‘The Italian Job’, all this strengthens Italy’s economy. Furthermore, the main pillars of the Italian economy are textiles, the food industry, motor vehicles and ceramics (Italian marble). When it comes to luxury goods in the world, Switzerland, France and Italy lead the way.
Italy GDP, exports-imports
If we talk about Italy’s GDP, its size in 2022 would be around $2.17 trillion. Italy faced many challenges in the year 2023, while Prime Minister Georgia Meloni also implemented provisions such as tax cuts to provide relief to the people. Still, Italy’s economy was growing. It is expected to grow at a rate of 1% in 2024.
If we talk about Italy’s trade, its largest partner is the United States. Mutual trade between the two has reached the level of 117 billion US dollars. Italy’s exports to the United States in 2022 amounted to $80.2 billion. The United States’ share of Italy’s total exports is about 10 percent.
If we look at Italy’s total imports, they amount to about 800 billion dollars. While its exports also remain between 750 and 775 billion dollars. In this way, Italy’s trade balance remains much better. However, since Covid, Italy has been struggling on many parameters. Due to this, the country’s debt burden is increasing.
Since Georgia Meloni became Prime Minister of Italy, her debt burden has increased. This has reached 140 percent of the country’s GDP, meaning the country has more debt than GDP. At the same time, its economic growth is estimated to be the lowest in the entire eurozone. Despite this, Georgia Meloni has focused on improving relations with Western and Eastern countries.
Relations between India and Italy
Apart from diplomatic relations, trade relations are also strong between India and Italy. Bilateral trade between India and Italy in 2023 will amount to 14.34 billion euros (about 15.3 billion dollars). India’s imports from Italy will amount to €5.18 billion (about $5.5 billion) in 2023. While India’s exports have been high and therefore the trade balance is in favor of India.
India trades with Italy mainly organic products, textiles, machinery, fish, medicines, dyes, yarns, motor vehicles, automobile spare parts, liquor, dairy products, petroleum products, plastics, leather goods and other goods.
