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How dependent is the Italian economy on Indians? What do the figures say?

Sagar Patel

By Sagar Patel

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How dependent is the Italian economy on Indians?

Following the election results, the country’s Prime Minister, Narendra Modi, traveled to Italy to participate in the G7 meeting. He where he met with the newly appointed Prime Minister of Italy, Georgia Meloni. Then, a photo of Meloni with PM Modi on the X-handle went quite viral. In which she had put the title of the name Melody. Looking at the photo, you could clearly see the chemistry and respect between both heads of state. After that, the incident occurred with the Punjab Strawberry Factory in Italy and the subsequent death. He was criticized not only in India but also in the Italian Parliament. Indian officials present in Italy have been asked to take strict action against the culprits.

After this incident, the relations between the two countries have come into discussion again. This is also special because Narendra Modi has become the Prime Minister of the country for the third time in a row. On the other hand, Georgia Meloni has come to power. If we look at the trade relations between the two countries, in the year 2023, trade worth more than 14 billion euros was recorded between the two countries. What is special is that there was a decrease in exports from India. On the other hand, there was an increase in imports. As for the overall trade, a decrease of about 3.50 percent was observed compared to the year 2022. While since the year 2020, bilateral trade between the two countries has doubled. Let us try to understand from the figures how much trade is done between the two countries. Also, what does India send to Italy and what goods does it import from Italy?

Export and import between India and India

Bilateral trade between India and Italy is estimated at 14.34 billion euros in 2023. Exports from India to Italy reached 9.16 billion euros in 2022, 8.86 percent less than last year. During 2023, India’s imports from Italy amounted to 5.18 billion euros, which represented an increase of 7.69 percent compared to the year 2022. If we talk about trade balance, it is still favorable to India with 3, 98 billion euros. The special thing is that for more than 3 decades this trade balance has been in favor of India.

Trade between India and Italy

Year Total bilateral trade between the two countries ,in millions of euros, Exports from India to Italy ,in millions of euros, Imports to India from Italy ,in millions of euros, balance of trade ,in millions of euros, What is the percentage change compared to last year?
2019 9145.75 5153.89 3991.86 1579.42 -3.66
2020 7262.61 4235.05 3027.56 1162.03 -20.59
2021 10477.73 6599.12 3878.61 1207.49 44.27
2022 14857.26 10045.05 4812.21 5232.84 41.80
2023 14340.27 9163.99 5176.28 3987.71 -3.48

These products are shipped from India to Italy.

Goods exported from India to Italy include basic organic products, textiles, general machinery, precious and other non-precious metals, other textile products, fish, crustaceans and mollusks (processed and preserved), pharmaceuticals, dyes and yarns , motor vehicles and. components, refined petroleum products, footwear, industrial machinery, clothing, electrical machinery, plastics, iron and steel articles, petroleum and mineral fuels, leather articles.

What does India import from Italy?

Goods imported from Italy to India include machinery for textile, garment and leather industries, general machinery, special machinery, basic organic products, vehicle spare parts and accessories, taps and valves, paper and cardboard, bespoke metal supplies including machine tools and ornamental and building stones, limestone, plaster, chalk and slate, tubes, pipes, hollow sections and related fittings of steel (except cast steel), pumps and compressors, chemicals.

Future prospects between the two countries

The future prospects for investment and trade between the two countries are considered quite encouraging. There are reasons for this too. Today, India is seen as an emerging economy in the world and a major economic partner in Asia, both in terms of trade and investment and market size. So Italy also seems to be attracted to India.

Prime Minister Modi visited Italy in 2021

Prime Minister Modi made his first visit to Italy in October 2021 to attend the G20 Leaders Summit. In March 2023, Italian Prime Minister Meloni made his first visit to India. After which the bilateral relations between the two countries were raised to the level of strategic partnership. In March 2023, Deputy Prime Minister and Minister of External Affairs and International Cooperation Antonio Tajani and Minister of Commerce and Industry Piyush Goyal co-chaired a business forum in New Delhi, attended by around 40 leading Italian and Indian companies.

The association was increased here in 2023

Commerce and Industry Minister Piyush Goyal visited Italy with a high-level business delegation from CII from April 12-14, 2023. Apart from bilateral meetings during the visit, he also participated in a high-level CEO talk. Which was co-chaired by Antonio Tajani and Piyush Goyal. Both countries had committed to strengthen their cooperation in sectors such as agriculture, renewable energy, automotive, space, defence, IT & ITES, etc.

Europe’s fourth trading partner

According to data from the Indian Embassy, ​​Italy is India’s fourth largest trading partner in the European Union, after Germany, Belgium and the Netherlands. Bilateral trade between India and Italy has grown strongly in the last three years following the economic recovery following the Covid-19 pandemic. Bilateral trade in 2021 reached €10.49 billion, an increase of 44.41 percent compared to the previous year. In 2022, total trade reached the highest level with 14.88 billion euros and in 2023 this figure dropped to 14.34 billion euros.

More than 600 Italian companies in India

According to data from the Indian Embassy, ​​Italy is the 18th largest foreign investor in India, with FDI inflows of $3.53 billion between January 2000 and December 2023. More than 600 Italian companies are already present in India in sectors such as fashion and apparel, textiles and textile machinery, automotive, automotive components, basic infrastructure, chemicals, energy, confectionery, insurance, etc. In such a situation, Italy becomes even more important for India.

Indian companies investing in Italy

According to data from the Indian Embassy in Rome, Indian investment in Italy is estimated at around $400 million. Indian companies in Italy are mainly in the IT, pharmaceutical, electronics, manufacturing and engineering sectors. Top Indian companies in Italy include Titagarh Industries, TCS, Mahindra, Ranbaxy, Bombay Rayon, Zydus Cadila, Dr. Reddy’s Laboratories, Aurobindo Pharma Italia, Himatsingka Seed, Varoc Group, Endurance Technologies, Gammon, ABG Group, Aditya Birla, Raymond Zambaiti , Sun Pharma, etc. are included. According to the media, between 100 and 120 Indian companies work in Italy.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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