India-Italy Relations

Bilateral political relations between India and Italy are warm and friendly. There is a growing realization in Italy of the importance of India especially as an economic partner. President of Italy HE Mr. Cario Azeglio Ciampi paid a state visit to India in February 2005, accompanied by a high level ministerial and economic delegation. MoUs and Agreements were signed between India and Italy to enhance political dialogue, strengthen cooperation in various sectors, notably science and technology, space research, food processing, fisheries and aquaculture, archaeology and culture. EAM Shri K. Natwar Singh visited Italy in June 2005 and held discussions with his counterpart Foreign Minister Fini.

Important Bilateral Treaties and Agreements, with brief notes:
• Double Taxation Avoidance Agreement (1985)

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• Bilateral Investment Promotion Agreement (23rd November 1995)

• Agreement on Co-operation to Combat Terrorism, Organized Crime and Illicit
Trafficking in Narcotic Drugs and Psychotropic Substances (6thJanuary, 1998).

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• Agreement on Tourism Co-operation (26th June, 2000).

• Indo-Italian Agreement on co-operation in the field of Science & Technology
(November 2003).

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• MOU on Fishery and Aqua-culture products (February 2005);

• MOU on Cooperation for the Conservation of the Paintings of the Ajanta and Ellora
Caves (February 2005);

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• MOU on Science and Technology; (February 2005)

• MEA – MFA MoU (February 2005)

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• Audio Visual Co-Production Agreement (May, 2005)

The first ever Head of State level visit from Italy to India took place from February 9-12, 1995 when Italian President Oscar Luigi Scalfaro visited India. In the same year on May 23-27, Vice President, Shri K.R. Narayanan, visited Italy at the invitation of the President of the Italian Senate. President Dr. S.D. Sharma visited Italy in October 1996. Later in November 1996, Prime Minister H.D. Devegowda visited Italy for the World Food Summit organized by FAO. He also met Prime Minister Prodi and other senior Italian leaders. In September 1997 Prime Minister I.K. Gujral visited Rome and met Prime Minister Prodi, President Scalfaro and Pope John Paul II. Prime Minister Prodi paid an official visit to India in January 1998 and met President Narayanan, Vice President Krishan Kant and Prime Minister Gujral. Prime Minister A.B. Vajpayee paid an official visit to Italy on June 25-27, 2000 during which he met the President and Prime Minister of Italy and also called on the Pope. Dr. Carlo Azeglio Ciampi, President of the Italian Republic, paid a State visit to India from February 12-16, 2005. During the Visit, President Ciampi met with President and Prime Minister. He also held separate meetings with the Vice-President and EAM. Both sides expressed the desire to accord a new momentum to the expansion and intensification of Indo-Italian relations in both traditional and new areas.

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Commercial and Economic Relations:

India is Italy’s fourth largest trading partner in the EU. Balance of trade has been in India’s favour since 1988.

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In terms of exports, Italy, within the EU, is India’s third most important destination after the U.K. and Germany.

Principal items of India’s exports to Italy: Textiles, readymade garments, leather and leather goods, granite and similar stones, basic chemicals, gems and jewellery, marine products, engineering goods, iron and steel, bars and sheets, auto vehicles, auto parts, etc.

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Principal items of India’s imports from Italy: Machinery for precision tools, basic chemicals, textile and granite machinery, general machinery, leather and goods, fabrics, auto vehicle parts, base metals, measuring instruments, etc.

Italy accounts for about 1.95% of the total investment approvals from August 1991 to September 2004, with FDI approvals of US$ 1.31 billion and a cumulative Inflow of US$ 0.45 billion, which is 1.83 % of total inflows. Top sectors attracting FDI from Italy are Transportation Industry (56.19%), Food Processing Industries (8.97%), Metallurgical Industries (8.20%), Textiles (including dyed, printed) (4.57%) and Electrical Equipments (including computer software and electronics (4.45%).

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Future prospects for investment and trade are encouraging, as India is increasingly being seen by Italy as an emerging economic power in the world and an important economic partner in Asia.

S&T Relations and cooperation in other field

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Like India, Italy has also invested heavily in human resource development and the development of scientific institutions. Besides supporting its universities in this regard it has also successively obtained the location of international scientific institutions in Italy. In Trieste, in northeastern Italy, for instance, there is the Abdus Salaam International Centre for Theoretical Physics. Also in Trieste is the Siclotron Project as well as the International Centre for Genetic Engineering and Biotechnology, which has an alternate location in New Delhi. Senior Indian faculty and researchers are operating at the ICTP in Trieste and through its good offices Indian researchers are also brought to Siclotron separately through the Indo-Italian Science and Technology Agreement with its attendant protocols. More than 20 Indian and Italian scientists are engaged in workshops at various places on scientific and technological research. A delegation led by Secretary, Department of S&T had visited Italy in March 2002 and signed a cooperation programme for the years 2002-04 with the Ministry of Foreign Affairs to further enhance this cooperation. A basic Agreement on S&T Cooperation was signed in 1978, in context of which a Programme for Scientific and Technical Co-operation was agreed upon during the 2nd Meeting of the Indo-Italian Joint Committee on S&T in Delhi in February 1993. In supersession of this agreement, Government of India and the Government of Italy have signed a new agreement on S&T cooperation in November 2003. A joint meeting on India–Trento Programme for Advanced Research (ITPAR) was held at Trento from July 20-23, 2003. An Agreement for Advanced Research Programme between India and Trento was signed at the end of the meeting. During the State visit to India by President Ciampi in February 2005, Agreement in the field of S&T cooperation between India and Italy and Executive Programme of Science & Technology cooperation between India and Italy were signed. In addition, six MOUs were signed between various institutions.

There is also the Istituto Italiano per l’Africa e l’Oriente (IsIAO) in Rome whose aim is to promote and develop cultural relations between Italy and Asian countries. There is also a similar Institute (CESMEO) in Turin.

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Students Exchange Programme:

The VI Cultural Exchange Programme between the Government of the Republic of India and the Government of the Italian Republic for the years 2003-2005 was signed on 25th January 2003. In the framework of this Programme, each Party shall award mutually scholarships during the academic years. The Italian Party awards 64 man/months scholarships to Indian citizens. The Indian Party awards 4 scholarships of 1 to 3 years duration for study & research and 1 or 2 scholarships for the study of Hindi.

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Sister City relations with India:

A twinning agreement between the cities of Naples and Kolkata was established in 2003/2004. There is also a proposal for twinning of the city of Vishakhapatnam with the city of Catania in Italy. Another proposal is to twin the city of Bikaner with the city of Udine.

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