With a goal of €700 billion in exports by 2027, Italy, a major member of the European Union (EU), on Thursday announced a stronger commercial drive into India as India moves into the last phase of finalising its trade agreement with the EU. While visiting India, Deputy Prime Minister Antonio Tajani stated that his nation sees great potential in India and wants to strengthen collaboration in research, education, and innovation to boost both economies' competitiveness.
Speaking at the Italy-India Business Forum in Mumbai, Tajani stated that Italian businesses currently operating in India intend to grow their operations in industries like sports goods, automobiles, defence, pharmaceuticals, and space. He added that Italy wants to promote reciprocal investments as part of a larger strategic partnership.

Piyush Goyal, the minister of trade and industry, stated at the event that the accelerated engagement—which includes three significant commercial encounters in eight months—reflects a change in how both parties see the alliance. Goyal claimed that a contemporary free trade agreement (FTA) will provide businesses on both sides with a stable framework for trade and market access, and that India is dedicated to finalising the long-pending EU-India FTA and seeks a fair and balanced outcome. Goyal stated that the deal may be "over the finishing line" with persistent effort and that the negotiations are now at a point where political will can decide the outcome.
Over 800 Italian businesses in India employ about 60,000 people and generate €9.7 billion in revenue, according to figures from Italy's Economic Diplomacy.

Their presence, which is mostly centred in the industrial areas of Delhi-Gurgaon-Noida, Mumbai-Pune, Chennai, and Bengaluru, includes completely owned subsidiaries, joint ventures, and commercial offices.
Italian foreign direct investment in India totalled €6.9 billion in 2024, compared to €490 million in Indian investment. These businesses, which represent the breadth and depth of Italy's involvement in India, operate in the automobile and component industries, engineering machinery, food and beverage, fashion, retail, and energy sectors.
A number of significant Italian companies are well-established in the nation, such as Benetton and Geox in fashion retail, Ferrero and Lavazza in food and beverage, and Fiat and Piaggio in cars and mobility.

Manufacturing and R&D facilities for both local and international markets are operated by engineering and component manufacturers like Carraro, Graziano, Brembo, Dell'Orto, and Raicam. While brands like OVS keep growing their retail presence, Italian machinery businesses like IMA and Ansaldo Caldaie are involved in the production of industrial equipment.
Tajani's comments coincide with Europe's efforts to diversify its supply chains and find more dependable partners in the face of ongoing geopolitical unpredictability. India is becoming one of the most important options for European firms trying to lessen their reliance on China since it offers both scale and a growing industrial base. Tajani stated that Italy views technology-driven cooperation as the next phase of the partnership and wants to be a part of India's innovation plan.

Goyal emphasised the Italy-India Joint Strategic Action Plan, which is being carried out in the areas of people-to-people interactions, trade, investment, research, and innovation. He stated that while Indian companies are looking at collaborations in R&D, sports technology, defence, space, and agri-processing, both nations may increase industrial cooperation in the fields of auto components, textiles, and leather goods. He stated that Italian businesses that specialise in high-performance equipment are becoming more interested in sports manufacturing and infrastructure as India gets ready to host the 2030 Commonwealth Games and contemplates a bid for the 2036 Olympics.
Speaking on the larger trade architecture, Goyal stated that while the India-Middle East-Europe Economic Corridor will speed up and improve the predictability of the flow of commodities, nations must also address supply-chain vulnerabilities and input prices.

At a time when commerce is increasingly being "weaponised," he cautioned against relying too much on any one region and stated that economies dedicated to open markets must cooperate and look into mutual recognition agreements to boost their sectors.
Goyal and deputy prime minister Antonio Tajani co-chaired the 22nd Session of the India-Italy Joint Commission for Economic Cooperation (JCEC) during Goyal's two-day visit to Italy in June.
India's trade surplus with Italy decreased from $8.76 billion in exports and $5.79 billion in imports in FY25 to $7.72 billion in exports against $6 billion in imports.Electrical and electronic equipment, iron and steel products, machinery, organic chemicals, coffee, tea, spices, automobiles, and various metal goods are among India's top exports to Italy. In addition to machine tools, industrial systems, chemical products, and specialised engineering items that serve domestic manufacturing sectors including textiles, automobiles, and heavy industry, India primarily imports machinery and electrical equipment from Italy.