INDIA
- ITALY RELATIONS – INTERNATIONAL
News:
India, Italy sign defence
cooperation agreement
What's
in the news?
●
India and Italy signed a defence
cooperation agreement to promote cooperation in varied defence domains such as
“security and defence policy, R&D, education in military field, maritime
domain awareness, sharing of defence information and industrial cooperation,
including co-development, co-production and setting up of joint ventures”.
Key
takeaways:
●
The pact was concluded after the bilateral
talks between Defence Minister Rajnath Singh and his Italian counterpart Guido
Crosetto in Rome.
India
- Italy Relations:
●
India and Italy are ancient civilizations
but young states. Based on common interests like rule based international
order, India and Italy have enjoyed a cordial relationship.
1.
Diplomatic:
●
Political relations between India and
Italy were established in 1947.
●
The two countries enjoy cordial relationships.
There has been a regular exchange of visits at political and official levels
between both countries.
●
Italy has supported India’s membership to
export control regimes like the Missile Technology Control Regime (MTCR),
Wassenaar Arrangement and the Australia Group.
2.
Trade and Investment:
●
Italy is among India’s top 5 trading
partners in the EU. The balance of trade has been in India’s favour since the
early eighties.
●
In 2021, the two countries inked a
Strategic Partnership on Energy Transition to advanced collaboration on areas
like green hydrogen and biofuels.
●
India invited Italy to partner in ‘Make in
India’ and ‘Aatmanirbhar Bharat Abhiyan’ with a focus on the areas of renewable
energy, green hydrogen, IT, telecom and space among others.
●
Italy also joined the successful
India-France led International Solar Alliance comprising over 90 members.
3.
Cultural Exchange:
●
The agreement for cultural cooperation was
signed in 1976.
●
It was replaced by a new Agreement in July
2004.
●
The Cultural Exchange Programme (CEP)
between Italy and India entails exchange of students in language programmes as
well as other academic courses.
4.
Scientific Cooperation:
●
An Agreement on S&T Co-operation has
existed since 1978.
●
The Agreement envisages three yearly
action plans under which a maximum of thirty joint research projects can be
undertaken.
●
India-Italy Science and Technology
Cooperation (JSTC) has been actively promoting cooperation through joint
project proposals.
5.
Defence:
●
Defence cooperation has traditionally been
an important pillar of India-Italy relations. An MOU on Defence Cooperation was
signed in November 1994.
●
India also welcomed Italy’s engagement in
the Indian Ocean Rim Association (IORA) and Italy’s new status as a Development
Partner of ASEAN
●
The navies of both countries regularly
co-operate in anti-piracy missions.
Highlights
of the current visit of PM Meloni:
1.
Strategic partners:
●
India and Italy have decided to elevate
the ties to the level of strategic partnership and identified defence as one of
the areas where they can start a “new chapter”.
2.
Boost to startups:
●
The meeting led to the establishment of a
‘Startup Bridge’ between India and Italy.
3.
Bilateral defence exercise:
●
They also decided to organise joint
military exercises and training courses on a regular basis.
4.
Enhance people's mobility:
●
India and Italy also signed a Declaration
of Intent on migration and mobility and inked a memorandum of understanding
between Rabindra Bharati University, Kolkata and Italian Consulate General; and
Morarji Desai Institute of Yoga and Sarva Yoga International, Italy.
Why
is Italy significant for India?
1.
Trade:
●
Italy is the fifth-largest economy in the
European Union and the third-largest in the Eurozone after Germany and France
with a GDP of $1.86 trillion.
●
It is also the world’s sixth-largest
manufacturing nation.
●
India, on the other hand, is one of the
fastest-growing economies in the world. The bilateral trade between the two
countries has been increasing steadily over the years (US $10 billion), and
Italy is one of India’s most important trading partners in the EU.
2.
Investments:
●
Italy is India’s fourth largest European
trading partner and the 12th largest foreign investor in the country with
FDI reaching the US$2 billion mark in 2020.
●
In 2021, bilateral trade was valued at
over 10 billion with the balance in India’s favour.
●
Italian companies have been investing in
India in various sectors such as automobiles, fashion, food processing and
infrastructure.
●
Likewise, Indian companies are also
investing in Italy in the areas of pharmaceuticals, IT, and energy. There is
significant potential for further investment and collaboration between the two
countries.
3.
Supporting Indian manufacturing:
●
India’s “Make in India” initiative and
modernization drive can be complemented by Italian expertise in areas like
manufacturing, green tech and defence.
●
Machinery equipment comprises 36 percent
of total Italian exports to India and both economies are structured around
SMEs.
4.
Cultural Ties:
●
India and Italy share a rich cultural
heritage, which dates back to ancient times. Italy is home to some of the most
famous historical monuments, museums and art galleries in the world, which
attracts millions of tourists every year.
●
Many Indian tourists visit Italy to
explore its cultural heritage and many Italian tourists visit India to
experience its rich culture and heritage.
5.
Education:
●
Italy is home to some of the world’s
oldest and most prestigious universities, which offer a wide range of courses
and programs.
●
Indian students are increasingly choosing
Italy as a destination for higher education, as it offers high-quality
education and exposure to European culture and languages.
6.
Energy transition:
●
In 2021, the two countries inked a
Strategic Partnership on Energy Transition to advanced collaboration in areas
like green hydrogen and biofuels, and Italy also joined the successful
India-France-led International Solar Alliance comprising over 90 members.
Challenges
in India-Italy Relations:
1.
Low trade w.r.t potential:
●
India and Italy have been trading partners
since the Roman era, so the country’s low investment and trade volumes are
regrettable.
2.
The Enrica Lexie Case:
●
In 2012, two Indian fishermen were killed
by Italian marines. The incident was a huge mistake, and the sad fact quickly
became politicized.
3.
Internal issues of Italy:
●
Italy is a problem for EU due to its low
growth rate of 1.5%, high youth unemployment rate of 30%, and the alarmingly
high debt-to-GDP ratio of 133%.
4.
Non-implementation of the trilateral partnership:
●
Non-implementation of the trilateral
partnership between India, Italy, and Japan was launched in 2021; however,
despite the well-established India-Japan partnership and Italy’s strong
complementary potential, it has not been implemented.
5.
Immigration issues:
●
There has been a significant influx of
Indian immigrants in Italy, which has sometimes led to tensions between the two
communities. Issues such as employment, social integration, and cultural
differences need to be addressed to ensure peaceful coexistence.
6.
Investment climate:
●
Despite the significant potential for
investment, there are some challenges in the investment climate in India and
Italy.
●
For instance, India needs to address
issues such as corruption, bureaucracy, and regulatory barriers, while Italy
needs to address issues such as high taxation and regulatory complexity. Both
countries need to work together to create a more conducive investment
environment.
WAY
FORWARD:
●
The two countries can facilitate
cooperation between the Indo-Pacific and the Mediterranean Sea geographies
given India’s permanent presence in the Indian Ocean region and Italy’s in the
Mediterranean. Encouragingly, in 2022, the Italian parliament approved a motion
to pay more attention to the region.
●
Supporting an effective multilateral
system, which would be the best political accelerator to win our battle against
the novel coronavirus and to promote sustainable, equitable and durable
recovery.
●
The potential of India and Italy as trade
partners can be further explored if India and the European Union (EU) sign the
Bilateral Trade and Investment Agreement (BTIA) which has been in negotiation
for over 11 years without conclusion.
India’s partnership with
Italy is gaining strength on all levels - political, economic, and strategic.
PM Meloni’s visit to India at this critical juncture of global politics would
further boost ties while also adding fodder to the reinvigorated EU-India
partnership. For India-Italy relations, the future is likely to be bright and
progressive.