PM Modi in Rome: Why India, Italy need to build a strategic future together

Prime Minister Narendra Modi’s forthcoming visit to Italy from May 19–21 at the invitation of his counterpart Giorgia Meloni comes at a moment when the India-Italy relationship is quietly, but decisively acquiring strategic depth. What was once a partnership constrained by hesitation and interrupted by diplomatic turbulence is now being reimagined through the prism of geopolitics, industrial cooperation, connectivity, and technological transformation.

 

Rome increasingly understands that the future of European competitiveness, economic resilience and strategic diversification will depend upon trusted industrial partnerships beyond the Continent, and India stands out because of its democratic credentials, scale, demographic dynamism, manufacturing ambitions, and expanding geopolitical role.

 

 

India requires scale, industrial capacity, advanced technologies, and manufacturing know-how to power its population of 1.4 billion forward. Italy possesses world-class strengths in machinery, precision manufacturing, industrial automation, auto components, green technologies, precision agriculture, food processing, waste-to-energy systems, and design-led manufacturing. The opportunity now is to “design, develop and produce together”.

 

Bilateral trade has reached nearly $16.77 billion in 2025, making Italy India’s fourth-largest trading partner in the European Union. The target of erros 20 billion euro by 2029 now appears realistic rather than aspirational. The landmark 3.8 billion euro acquisition of the Iveco Group by Tata Motorsunderlines the growing confidence of Indian industry in Italy’s advanced manufacturing ecosystem. Simultaneously, Italy has demonstrated serious intent by opening an office ofSIMEST – an Italian financial institution which supports the international growth and competiveness of Italian companies in New Delhi with a 500 million euro funding line. SACE, the Italian export credit agency specialising in supporting Italian companies with insurance, financial guarentees, and risk management has committed another 200 million euro for Italian SMEs in India.

 

The successful conclusion of the India-EU FTA has dramatically expanded opportunities in engineering goods, clean technologies, pharmaceuticals, defence manufacturing, agri-tech, renewable energy, digital services, logistics, textiles, mobility, and advanced manufacturing supply chains. Italy, with 800 active companies in India, with its medium-scale industrial excellence and export-oriented manufacturing base, could emerge as one of India’s most important European gateways.

 

Both sides have made a conscious effort to move beyond past legacy issues and open a new chapter in bilateral defence ties. Italy today openly sees India as a defence-industrial partner rather than merely a buyer. Co-design, co-development, and co-production are the defining themes of the 2026-27 bilateral Military Cooperation Plan. Naval exercises, and maritime security dominate the Indo Italian naval cooperation.

 

This fits naturally with India’s own strategic priorities under Atmanirbhar Bharat. Italian expertise in naval systems, aerospace technologies, defence electronics, propulsion systems, shipbuilding, and advanced engineering can complement India’s manufacturing ecosystem. At the same time, Indian companies would understandably like to see greater co-production within Italy itself, especially given labour shortages across several Italian industrial sectors. The Indian population in Italy is 186,000, and remittances from Italy totaled Euro 594 million in 2025. Amigration and Mobility Agreement, signed in November 2023 has put into place safe and legal migration of seasonal and non-seasonal workers, professionals and academics. Higher quotas, as well as more openness toward skilled Indian professionals could become an important pillar of the partnership.

 

Innovation is another promising frontier. Italy’s plans to establish an innovation centre in India connecting start-ups, universities, research clusters, and technology-driven enterprises which could create a valuable bridge between the two ecosystems. This is especially relevant at a time when technological competition, supply-chain security, and industrial resilience are reshaping global economics. India and Italy collaborate across a spectrum of projects in science and technology, space and the creative arts including fashion and design.

 

Then there is connectivity — perhaps the most strategic dimension of all. Italy’s strong support for the India-Middle East-Europe Economic Corridor (IMEC) reflects this reality. The activation of the Sparkle-Airtel Blue-Raman submarine cable from India to Genoa already gives Italy a concrete role as IMEC’s western anchor. For both partners, IMEC is not merely a trade corridor; it is also an instrument of investments, infrastructure, energy security, supply-chain resilience, and strategic connectivity.

 

Prime Minister Modi’s address to the Food and Agriculture Organisation in Rome will also carry significance beyond symbolism. At a time of food insecurity, climate stress, and disrupted agricultural supply chains, India’s experience in digital public infrastructure, climate-resilient agriculture, food distribution, and sustainable farming innovations gives it increasing global relevance.

 

Ultimately, the India-Italy relationship is becoming a test case for how India and Europe can build trusted industrial, technological, and strategic partnerships in an age of uncertainty. To sustain this momentum, both sides must now institutionalise investment facilitation, accelerate defence-industrial cooperation, deepen mobility arrangements, support innovation ecosystems, and move quickly to take advantage of the India-EU FTA. The opportunity exists, and thestrategic logic is compelling- sustained political will and implementation is all that is required for India and Italy to build a strategic future together.

 

---

Anil Wadhwa has served as Secretary (East) in the Ministry of External Affairs and was a former Ambassador to Italy 

  (Disclaimer: These are the personal opinions of the writer. They do not reflect the views of www.business-standard.com or the Business Standard newspaper)