Make Together For the World: From Trade to Co-Production & Supply Chains, Pg5

Key Highlights:

• Approximately 1,000 Italian companies operate in India, with the goal to increase this number and strengthen Indo-Italian value chains.
• India is Italy’s second-largest trading partner in Asia, with bilateral trade nearly doubling in the last seven years.
• The aim is to reach €20 billion in bilateral trade by 2029, alongside increased investment flows between both nations.
• The Italian Government views India as a priority trade and industrial partner, establishing instruments like a SIMEST office in New Delhi.
• A dedicated “India financial line” worth over €500 million has been created to support market-access activities and joint ventures.
• SACE operations have been strengthened, exceeding €2 billion, with participation in trade fairs like AADHAR.
• A Free Trade Agreement between the EU and India is expected to reduce tariffs and barriers, fostering economic cooperation and growth.

Detailed Insights:

• Italy and India's economies are strongly complementary, with India investing in its industrial base and Italy being Europe’s second-largest manufacturing power.
• Synergies exist across sectors like machinery, industrial automation, defense, pharmaceuticals, renewable energy, fashion, agritech, and agri-food.
• Collaboration will extend to critical materials and technologies, supported by a finalized Memorandum of Understanding (MoU).
• The EU-India Free Trade Agreement will create opportunities, strengthen economic cooperation, investment, and long-term growth for both countries.
• Focus is not only on trade but also on joint development and production, combining the strengths of “Make in India” and “Made in Italy”.
• Enhanced dialogue among banks, stock exchanges, venture capital firms, and investment funds will support investments and trade.
• The India financial line aims to facilitate market access and joint ventures, promoting stronger economic ties.

Key Concepts Involved:

• SIMEST: Italian agency supporting business internationalization by facilitating access to international markets.
• SACE: Italian export credit agency insuring and guaranteeing international transactions, reducing risks for companies.
• Free Trade Agreement: Pact between two or more countries to reduce trade barriers like tariffs and quotas, encouraging trade and economic growth.