The Hindu Editorial Analysis- 4th October 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Why Italy matters to India 

Why in News?

In this age of ‘polycrisis’, Italy and India share common interests but also joint challenges in the Indo-Mediterranean Sea. This region is vital for global trade, especially for Italy which ranks sixth among the world’s largest exporters. It is also crucial for digital connectivity: the Blue-Raman submarine data cables will soon connect Genoa with Mumbai. Piracy in the Red Sea, the conflict in Gaza and Lebanon, and the effects of Russia’s aggression against Ukraine on agricultural and oil trade require our joint efforts to ensure a free, open, and prosperous Indo-Mediterranean.

Major areas of engagement between India and Italy 

• Political relations:
  • There has been a consistent exchange of visits between leaders of both countries.
  • The Indian Prime Minister made his first official trip to Italy in October 2021 for the G20 Summit.
  • In March 2023, the Italian Prime Minister visited India for the first time as the guest of honor at the Raisina Dialogue.
• Economic Relations:
  • Italy ranks as India's 4th largest trading partner in the European Union.
  • The total trade between India and Italy was valued at US$ 14.25 billion in 2022-23, with India having a favorable trade balance.
• Defence Relations:
  • The India-Italy Military Cooperation Group (MCG) was formed to enhance defense collaboration.
  • In 2023, India and Italy signed a defense cooperation agreement to strengthen ties in areas like security and defense policy, and defense industry collaboration.
• Strategic Relations:
  • The relationship between India and Italy was upgraded to a Strategic Partnership in March 2023 during the Italian Prime Minister's visit to India.
  • A connection was recognized between the Indo-Pacific, where India plays a key role, and the broader Mediterranean, with Italy centrally located as a bridge to the Indo-Pacific.
  • Italy's choice to exit the Belt and Road Initiative aligns with shared goals for global connectivity between Rome and New Delhi.
• Multilateral Relations:
  • Italy supported India's inclusion in the Wassenaar Arrangement and the Australia Group.
  • The Blue-Raman project, featuring an Italian company, aims to connect the Mediterranean and the Indian Ocean through a submarine cable system for digital data exchange.
  • Italy has backed several of India's major initiatives, including the International Solar Alliance (ISA), the India-Middle East-Europe Economic Corridor (IMEC), and the Global Biofuels Alliance (GBA).

 Issues in India-Italy Relations

• Low Trade: India and Italy, despite their long-standing trade relationships that go back to the Roman times, currently engage in a relatively low level of trade and investment.
• Trust Issues: There have been earlier problems that have created a trust deficit between the two countries.
• Italian Mariners' Case: This incident led to a dispute regarding legal authority and functional immunity, which was only resolved in 2020 when the Permanent Court of Arbitration made a decision.
• Agusta Westland Helicopter Scandal: The Italian defense company Leonardo was accused of bribery, leading India to cancel a procurement deal and ban Leonardo from participating in the Indian defense market in 2015.
• Unrealized Partnership: In 2021, a trilateral partnership involving India, Italy, and Japan was announced, but it has yet to be put into action.

 Way forward

• Economic Partnership: Work on improving trade connections to boost trade volume, seek new investment opportunities, and encourage economic collaboration.
• Strengthening EU-India Partnership: If India and the EU finalize a trade agreement soon, both Italy and India could benefit greatly from increased trade. This would also enhance the renewed partnership between the EU and India.
• Shared Global Agenda: Italy and India can work together on global issues, as they both have a common goal to help shape and support a new worldwide agenda.
• Culinary Exchanges: Celebrate and showcase the rich food traditions of both nations through food festivals and cooking events. This could include Italian pasta and pizza being enjoyed in India, while Indian spices could add flavor to Italian meals.

Key Facts About Italy