By R Anil Kumar
Italy, June 14. The G7 Summit, happening from 13-15 June in Italy’s picturesque Puglia region, comes at a critical time. The world is grappling with multiple crises, including the ongoing wars in Ukraine and Gaza, and significant political events in the G7 countries themselves, with leaders like US President Joe Biden, France’s Emmanuel Macron, and Britain’s Rishi Sunak facing elections soon.
The summit’s agenda reflects these circumstances, and other global challenges. Like in 2023, invitation has been extended to certain non-G7 nations, including India.
India has been invited again:
The G7 is a group of countries with advanced economies. With a GDP of $3.94 trillion, India boasts an economy larger than four G7 members (Canada, France, Italy, and the UK) and is one of the fastest-growing economies worldwide.
India’s strategic partnerships with multiple G7 countries, including the US, UK, France, Germany, and Japan, further underscore its significance.
Additionally, India plays a crucial role in the Indo-Pacific region, serving as a counterbalance to China’s assertiveness. Its improving relations with Italy, coupled with its longstanding ties with Russia and numerous African nations, position India as a key player in discussions on economic security, geopolitical stability, and development.
India has been invited as an Outreach Country, Prime Minister Narendra Modi will play an important role in one of the global platforms, to engage with other world leaders present at the G7 Summit on issues of importance to India, as well as to the Global South.
It is learnt that PM Modi will also follow up on some of the key issues that were there during India’s G20 presidency.
It is an important visit:
Firstly, it is an opportunity for Prime Minister Modi to play an important role in one of the global platforms. It also marks continuity because he had participated in the G7 summit last year.
India’s participation at this G7 Summit acquires particular salience in the context of India’s recently held, presidency of the G20, where India took a leading role in building global consensus on several contentious issues.
India has so far organized two sessions of the Voice of the Global South Summit, which have been aimed at bringing the interests, priorities, and concerns of the Global South on the global stage.
It allows the Prime Minister to also follow up on some of the key issues that we had in the G-20 presidency, which he had chaired last year.
It’s an invitation to the prime minister from the Italian prime minister. India has been selected as a partner for the G7 summit. India is the only Asian country to be selected as a partner. It is an opportunity also to speak on some of the issues like food security, energy, clean technologies, AI, and other aspects, which are very important to the Global South.
These diplomatic engagements could have significant implications for India’s foreign policy and its stance on global issues. As PM Modi navigates the complexities of international relations, his actions could shape India’s position on the world stage.
Strengthening India-Italy Relations:
Their primary objectives include strengthening defence cooperation, enhancing trade and investments, countering terrorism, and addressing issues related to the Indo-Pacific region.
When Italian Prime Minister Giorgia Meloni meets with Indian Prime Minister Narendra Modi on the sidelines of the G7 Summit, their discussions will cover several critical topics. Their primary objectives include strengthening defence cooperation, enhancing trade and investments, countering terrorism, and addressing issues related to the Indo-Pacific region.
India-Italy Bilateral Relations
Italy is actively engaging with the European Union’s Indo-Pacific Strategy and is eager to participate both economically and strategically. The relationship between India and Italy has seen significant progress in recent years. In 2022, Modi and Meloni met on the sidelines of the G20 summit in Bali, and Meloni visited India as a chief guest at the Raisina Dialogue in 2023, as well as attending the G20 Summit in New Delhi.
During her visit, India and Italy elevated their bilateral relations to a ‘Strategic Partnership,’ focusing on areas such as defence, the Indo-Pacific region, energy, and science & technology.
In their bilateral meetings, the two Prime Ministers are expected to review the Strategic Partnership and its various elements, and one of the Strategic Partnership elements is defence, but that’s not the only element. There are other elements of bilateral engagement that would be reviewed by the two Prime Ministers.
The upcoming talks between the two leaders are expected to address various topics, including food and energy security, defence cooperation, space technology, innovation, robotics, and artificial intelligence. As the two countries celebrate 75 years of diplomatic relations, discussions will also cover maritime security and green hydrogen.
India-Italy Defence Cooperation
Italy is keen to revive its defence trade with India. This comes after India lifted a ban on the Italian defence major Leonardo from doing business with the Ministry of Defence.
In November 2021, Leonardo S.p.A. and its subsidiary AgustaWestland International UK were removed from the list of entities restricted from conducting business with the Indian Ministry of Defence. AgustaWestland is now merged with Leonardo.
Previously, India had lifted the suspension as the Indian Navy struggled to find alternatives for procuring 127mm naval guns and heavy-weight torpedoes.
For India’s first indigenous aircraft carrier, INS Vikrant, the Italian company Fincantieri is the provider of know-how for capability enhancement and technology upgrade.
In 2014, the Ministry of Defence cancelled a €546 million (US $624 million) contract with AgustaWestland International UK for the procurement of 12 AW-101 VVIP helicopters due to corruption charges. Now, Leonardo S.p.A is allowed to conduct business in India again. At the Aero-India 2023 event, Indian Defence Minister Rajnath Singh held talks with Italian State Secretary for Defence Matteo Perego Di Cremnago, highlighting the renewed defence cooperation between the two countries.
Expanding Cooperation
India and Italy are keen to deepen cooperation on joint ventures, research and development, technology transfer, clean technology, renewable energy, information and communication technology, healthcare, aerospace, education, and cultural heritage.
Italy, an important member of the European Union and a key trade partner of India, has more than 700 Italian companies active in India, employing about 60,000 people with an overall turnover of 9.7 billion euros.
Major Italian companies in India include Ferrero, Fiat, CNH, and Perfetti. Italian industry sectors are looking to forge partnerships with India in food processing, alternative energy, clean water technologies, waste management, fashion design, and luxury segments, as well as innovation and start-ups.
Italy’s industrial setup, similar to India’s with a large number of small and medium industries, can easily integrate into the Indian market.
Both countries can collaborate further in defence technologies and science. Italy possesses some of the finest defence technologies globally, and companies from both sides can engage in ventures under Prime Minister Modi’s ‘Make in India’ programme.
Bilateral Trade and Investment
Bilateral trade between India and Italy stood at US$15 billion in 2022-23, with India’s exports at US$8.691 billion, marking the highest level to date.
Italy is India’s fourth-largest trading partner in the European Union. The focus is on promising sectors like food processing, textiles, design, manufacturing, and financial services. Indian investment in Italy is estimated around USD 400 million, with Indian companies mainly in IT, pharmaceuticals, electronics, manufacturing, and engineering sectors.
Major Indian companies in Italy include Titagarh Industries, TCS, Mahindra, Ranbaxy, Bombay Rayon, ZydusCadila, Dr. Reddy’s Laboratories, Aurobindo Pharma Italia, Himatsingka Seide, Varroc Group, Endurance Technologies, Gammon, ABG Group, Aditya Birla, Raymond Zambaiti, and Sun Pharma.
The top items exported from India to Italy are iron and steel, telecom instruments, petroleum products, products of iron and steel, and auto components/parts. Principal items imported by India from Italy include industrial machinery for dairy, electric machinery & equipment, residual chemical & allied products, other miscellaneous engineering items, and machine tools. Italy is the 18th largest foreign investor in India, with a cumulative FDI inflow of USD 3.53 billion from January 2000 to December 2023.
Italy has joined key India-led global initiatives such as the International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI), Indo Pacific Ocean Initiative (IPOI), Global Bio-Fuels Alliance (GBA), and India Middle East Europe Economic Corridor (IMEEC), reflecting the growing convergence of views on important global issues.
With a focus on defence cooperation, trade, innovation, and global initiatives, the two nations are poised to enhance their strategic partnership and address mutual interests and global challenges.
