India And Italy Proceed Talks On Indo-EU Free Trade Agreement
India and Italy discussed progress on the proposed free trade agreement between India and the EU. They also aimed to cooperate in technology & defense.
The planned free trade agreement (FTA) between New Delhi and the European Union (EU) has been the topic of discussion between India and Italy, who voiced optimism for a speedy completion.
India and the EU reopened talks on a free trade agreement, investment protections, and geographical indications in January of last year.
Italy is a participant in the EU. The matter was covered during the April 12 meeting in Rome between Italian Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation Antonio Tajani and Minister of Commerce and Industry Piyush Goyal.
Both ministers emphasized the significance of completing a free, equitable, and balanced FTA and expressed optimism that it will be completed soon.
They also agreed that the Joint Commission on Economic Cooperation (JCEC) will meet again in Rome during the final week of September.
Tajani proposed the creation of a Joint Working Group in order to foster collaboration in key sectors like agriculture, technology, defense, and space.
Goyal stressed the importance of strengthening bilateral collaboration in the area of clean energy in order to achieve sustainability and lessen the adverse effects of climate change.
He also spoke to Italian and Indian firms, saying that there is enormous investment potential in India for them. He stated the wish that by 2030, India’s exports would total $2 trillion.
In 2022, bilateral trade between India and Italy reached above $16 billion. India’s exports to Italy between April and January 2022–2023 totaled $7.15 billion, while imports totaled $4.6 billion. The trade imbalance is in India’s favor.
With a total FDI of $3.25 billion between April 2000 and December 2022, Italy ranks as the 17th largest foreign investor in India.
It represents around 0.52% of the total FDI that India received during that time. Ready-made clothing, leather, iron ore, automobiles, textiles, chemicals, jewels, and jewelry are the principal exports from India to Italy. Machinery, machine tools, metallurgical goods, and engineering supplies are among the most common imported goods.
There are over 140 large Italian businesses operating in India. FIAT Auto, Heinz Italia, Italcementi, Necchi Compressori, Perfetti, Lavazza, ENI, SAI India, Isagro (Asia) Agrochemicals, and Piaggio are some of the significant Italian businesses that have made investments in India.
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In industries like IT, electronics, pharmaceuticals, the automotive, textile, and engineering, Indian businesses are present in Italy.
TCS, Wipro, Engineers India Limited, L&T, Mahindra & Mahindra, Ranbaxy, and Raymonds are some well-known Indian businesses with operations in Italy.