Why it matters: The EU–India free trade agreement, whose final phase was launched at Tuesday’s summit in New Delhi, is not just a Brussels win. For Italy, it opens a concrete window to scale industrial, technological and strategic cooperation with one of the world’s fastest-growing economies.
The big picture: European leaders and Indian Prime Minister Narendra Modi agreed to move decisively toward finalising the long-negotiated FTA, reframing trade as a pillar of strategic partnership.
- For Rome, the deal fits squarely into a broader push to diversify markets, de-risk supply chains and project Italian industry beyond mature Western economies.
By the numbers: A recent report by Deloitte circulating among policymakers estimates that the EU–India agreement could unlock around €2 billion in additional opportunities for Italian companies, building on an already substantial bilateral economic relationship.
Where Italy benefits most:
- Advanced manufacturing: Italy’s strength in machinery, automation, industrial components and high-value manufacturing aligns closely with India’s push to expand and upgrade its industrial base.
- The FTA lowers barriers and makes Italian firms more competitive as long-term industrial partners, not just exporters.
- Infrastructure and urban development: India’s rapid urbanisation creates demand for transport systems, construction solutions, engineering services and sustainable materials.
- Italian firms are well placed to move up the value chain, offering integrated design and engineering expertise rather than stand-alone products.
- Energy, bioeconomy and sustainability: Cooperation in renewables, energy efficiency, green chemistry and pharmaceuticals stands to benefit from a more predictable trade and regulatory framework.
- For Italy, this also supports diversification of critical supply chains within a European context.
- Digital and tech ecosystems: The agreement is expected to facilitate cooperation in digital services, advanced technologies and skills-intensive sectors.
- For Italian companies, this opens the door to partnerships, joint ventures and deeper integration with India’s talent-rich technology ecosystem.
What Italy is saying: Italy’s ambassador to India, Antonio Bartoli, has framed the EU–India FTA as a test case for a different European approach to global trade.
- Speaking ahead of the summit, Bartoli said Rome hopes the agreement will be built on an agenda that is “ambitious, mutually beneficial and future-proof,” stressing that reliability, trust and complementarity are the foundations of the India–EU partnership.
- Europe’s method, he argued, is peer-to-peer and cooperative — a win-win logic based on persuasion and shared interests rather than a transactional, zero-sum approach.
Between the lines: For Rome, the EU–India FTA is less about short-term export gains and more about positioning Italian industry along one of the most dynamic growth corridors of the global economy.
- It complements Italy’s European and transatlantic ties rather than replacing them — adding strategic optionality at a time of global economic fragmentation.
What to watch: How quickly Italian firms translate the new framework into concrete projects, partnerships and investments — and whether Rome can align trade diplomacy, industrial policy and economic diplomacy to fully capture the deal’s upside.
(Photo: X, @narendramodi)
