Italy and India, ever stronger technical and commercial cooperation

India is the fifth largest destination market for Made in Italy products in the Asia-Pacific region. Last year, the total value of our exports to the subcontinent amounted to EUR 5.2 billion, marking a 1% increase over 2023. The "Action Plan” for Italian exports

The Indian economy is expected to grow at a sustained pace over the next three years, to become the fourth or even the third largest global player by 2028. The OECD Economic Outlook – interim report presented on September 23rd estimates that, in the face of global growth of 3.2% in 2025, India's GDP will increase by 6.3% in the 2025-26 fiscal year and 6.4% in the next, in line with the assessments of other analysts (S&P and Deloitte). We can add that the OECD itself forecasts growth for China in 2025 and 2026 of 4.9% and 4.4%, respectively. On the foreign trade front: India has set itself the extremely ambitious goal of reaching USD 2 trillion in exports of goods and services by 2030. Considering that the figure in 2024 was USD 800 billion, the country is still far from the target, especially considering the current trade situation. India, however, confirms its ability to attract foreign investors, UNCTAD (United Nations Conference on Trade and Development) data indicate a stock of Foreign Direct Investment in India in 2024 equal to USD 548 billion, of which 2024 flows amount to USD 28 billion.

Analyzing bilateral economic and trade relations between Italy and the Asian country, we provide the latest available data below. India is the 29th largest destination market for Italian exports and the 5th in Asia-Pacific. Italian exports in 2024 totalled EUR 5.2 billion (+1% over 2023), with machinery and equipment accounting for over 40%. Imports in 2024 were approximately EUR 9 billion. In the first half of 2025, our exports totalled EUR 2,511 million (+0.7%), while imports came in at EUR 4,166 million (-12.1%). The downward trend in imports therefore continues, and is mainly attributable to the contraction in the metallurgy and petroleum derivatives industries. On the other hand, the decline in traditional imports of textiles, clothing, and leather goods is very limited and remains a major component of our imports from the subcontinent, mainly due to manufacturing collaborations established over the years with Italian companies.

In this context, India is at the center of our trade policies. The country is, in fact, included in the MAECI Action Plan for Italian Exports to High-Potential Non-EU Markets. Part of the Plan includes the Italy-India Scientific and Technological Business Forum, a biennial event to promote collaboration between the two countries in the scientific, technological, and business fields. The last Forum was held in New Delhi last April. Also in support of the Plan, it is worth mentioning the financing dedicated to the Indian market and made available by SACE and Simest.

SACE has signed an agreement worth USD 500 million with India's leading non-banking financial group Shriram Finance Limited (SFL). The technical form of SACE's intervention is the guarantee provided on an international loan to SFL aimed at supporting Indian buyers of new and used Italian vehicles. Shriram Finance offers financial solutions for the purchase of various types of commercial vehicles: for passenger and freight transport, for the construction sector, and for agriculture. The operation is part of SACE's Push Strategy, which provides support for Italian exports through interventions that impact the development and growth of foreign markets.

For its part SIMEST has placed the India Package into full effect, with an allocation of EUR 500 million aimed at supporting Italian exports and investments in India. Of this amount, EUR 200 million - to be drawn from the 394/81 fund – are made up of subsidized loans and outright grants (up to 20%) for costs related to business initiatives abroad, such as finding partners, participating in trade fairs and events, training local staff, certifications, opening temporary stores. Funding is also available for measures to strengthen capital adequacy, promote innovation, and promote the digital and green transition. An additional EUR 300 million strengthens the “Supplier Credit” instrument, Trade Finance's intervention to support the export of capital goods requiring a minimum payment period of 24 months, in this case from Italian companies to the Indian market. This tool is intended to provide a contribution that mitigates the costs borne by the exporter, relating to the discount granted by a financial institution for the pro soluto or pro solvendo assignment of the credit. The new element is that the instrument now also applies to commercial invoices in addition to the usual payment commitments (promissory notes, letters of credit, and payment guarantees).