In a significant affirmation of India-EU economic ties, Italy’s Ambassador to India has declared the European Union as India’s largest trading partner. This statement underscores the deepening commercial relationship between the two regions amid global trade uncertainties.
Speaking at a high-profile business forum in New Delhi, Ambassador Vittorio Sandalli highlighted the robust bilateral trade volume that has consistently grown over recent years. ‘The EU stands as India’s premier trade partner, reflecting mutual trust and economic complementarity,’ he emphasized.
Data from recent trade reports corroborates this position. In the fiscal year 2023-24, India-EU trade reached an impressive $120 billion, surpassing trade figures with other major partners like the US and China. Key sectors driving this growth include pharmaceuticals, automobiles, machinery, and renewable energy technologies.
The ambassador pointed out India’s strategic importance in the EU’s diversification strategy post-Ukraine crisis. ‘European companies are increasingly viewing India as a reliable alternative manufacturing hub,’ Sandalli noted, referencing investments from Italian giants like Stellantis and pharmaceutical leaders.
However, challenges remain. Non-tariff barriers, regulatory differences, and geopolitical tensions continue to hinder full potential. Both sides are negotiating a comprehensive Free Trade Agreement (FTA) expected to unlock further opportunities.
Italy, as a key EU member, plays a pivotal role. Bilateral trade between India and Italy crossed €14 billion last year, with strong performances in engineering goods, apparel, and leather products.
The ambassador called for accelerated FTA talks and urged businesses to explore joint ventures in emerging areas like green hydrogen and semiconductors. ‘This partnership will shape the future of global supply chains,’ he concluded optimistically.
As India positions itself as a global economic powerhouse, strengthening EU ties could propel its export-led growth strategy, analysts suggest. The coming years will test whether this diplomatic enthusiasm translates into concrete economic gains.