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Economy News, Latest Economic News Today | The HinduBusinessLine

GE, HAL clinch tech deal on joint jet engine plan India rejects USTR allegations, seeks termination of Section 301 probe Indian automobile sales record highest-ever sales in FY26, first time after FY19: SIAM Madhya Pradesh CM says basmati rice from the State is exported to 47 nations 63 Moons’ cybersecurity arm pilots GPS-spoofing solution at Indian airports Highways ministry notifies amendment to streamline fee for overloaded vehicles on NHs Global aviation crisis deepens as fuel shortage, Iran conflict hit airlines TRI launches agri-voltaic project to help farmers earn double income Hotel industry to hit $31 billion in 2029; listed hotel firms set to add 70k rooms by 2030: CBRE Temperatures may trend up over North-West, Central India until weekend Reduction in airport tariff credit neutral, minimal impact on revenue: Ind-Ra Global coffee prices rise as fertiliser costs and West Asia tensions threaten supply Bluspring Enterprises to acquire LSG Sky Chefs India, enters aviation catering sector China says policy to improve relations with India remains unchanged amid Arunachal naming row Research firms divided over impact of below normal monsoon on food inflation Unnat Krishi Mahotsav concludes, farmers to emerge as energy, fuel & hydrogen providers, says Gadkari Airlines may get ₹5,000 crore credit support under proposed ECLGS variant How kashmir’s breakthrough is making Gucchi mushroom farming possible Centre not taking away State’s power on bonus for agri produces, says FM Sitharaman Carriers cut flights on cost pressures, uncertain demand GE Aerospace scales AI from pilots to production; India anchors global capability West Asia crisis may push India’s current account deficit to 2% of GDP: Crisil Tax Dept to resume Tiger Global reassessment, says GAAR relief won’t alter SC ruling Ceasefire talks fail to restore vessel movement in Strait of Hormuz, fate of 599 ships remain inconclusive DMRC launches mid-life refurbishment of Blue Line trains to enhance safety and passenger experience Retail inflation likely rose 3.5-4% in March India-UK free trade pact may come into force from second week of May: Official 'West Asia war a good opportunity for energy reforms, lower costs for industry' India’s marine exports surge to ₹62,408 crore in 2024-25, Govt sets ₹1 lakh crore target PM Modi to inaugurate Dehradun-Delhi Expressway on April 14 India’s economic growth journey huge opportunity for international partners: Kwatra From diesel to daylight: How government solar schemes are powering India’s farmers The next energy leap: Replicating ethanol’s success in diesel Delhi EV Policy: Electric 3-Wheelers Only by 2027, 2-Wheelers by 2028 Windfall levy on export bound diesel, ATF raised India-flagged LPG tanker Jag Vikram crosses Strait of Hormuz after US-Iran ceasefire Muted pricing power, rising costs to curb benefits of demand in cement sector: HDFC Securities Central Railway to run four special local trains for Ambedkar Jayanti Cotton Association revises output estimates for 2025-26 up at 324 lakh bales of 170 kg each Agtech marketing in the age of regional content and creator communities Rajnath Singh, Nitin Gadkari to join 3-day agri event at Shivraj’s home turf, inaugurated today How agripreneurship will drive improved rural livelihoods in India World’s largest tur producer, yet an importer: A self-sufficiency puzzle unfolding on ground Ethanol in diesel generators: India’s next practical step towards energy security How sustainable sourcing can unlock value in India’s agri-value chains West Asia Crisis: Induction cooking may consume 13-27 GW power Govt defers power plant maintenance for three months; ready for summer demand Tractor sales cross 10 lakh mark in FY26 on strong rural demand, GST cut India to continue buying Russian crude oil India’s textile and garments exports to the US declined 28.7% in February 2026 Why India’s ₹5 pack won’t disappear, but getting smaller West Asia conflict: LPG usage at 21-month low in March E-way bill generation surged all time high of over 14 crore in March Cotton prices firm up tracking global prices Corn prices poised to fall on Iran-US ceasefire pact Air India at critical stage of transformation: Tata Sons Chairman FYL91 commences new flights to Hyderabad, Rajahmundry and Vijayawada Telangana’s GST revenue up 15% in last 3 months ASMS launches agri-commerce network AYOU in Hyderabad Ladakh turns to apricot blossoms to stretch short tourism season Govt proposes overhaul of company incorporation rules to cut paperwork, enable risk-based checks HAL delivers 4 helicopters to Coast Guard Charter services operators urge review of ATF pricing Structural gaps affect growth of India’s high-value horticulture sector: Report Rubio set to visit India in May to discuss trade, tariffs, defence, Quad DGFT rolls out procedure for allocation of calcined coke Qatar vows to remain reliable energy supplier to India amid West Asia tensions Gadkari bats for 100% land acquisition before approving NH projects India must rethink West Asia energy reliance after biggest shock in decades, says ONGC chief Sumeet SSG partners Pinnacle Industries to strengthen Maharashtra’s EMS fleet Consumer durables growth muted as demand slows, margins shrink: HDFC Securities March 2026 was the fourth-warmest month on record, says European weather agency India relaxes rice exports norms to some European countries Unseasonal rains damage rabi crops on 2.49 lakh ha, wheat most affected: Agri Minister ADB projects 6.9% growth rate for current fiscal, 70 bps lower than FY26 India-UK FTA likely by May 1; EU trade deal expected by year-end Dubai limits foreign flights until May 31, letters show, hitting Indian airlines hardest India in talks with 20 more countries to open market access: Piyush Goyal ADB ups India's FY27 growth projections to 6.9% Iran control of Strait of Hormuz in focus as tanker turns back, Trump raises concerns India mulls creating 30-day LPG strategic reserve Fire at Mumbai airport terminal delays flights Lesson from West Asia conflict is to factor-in adverse scenarios while framing policies: Oil Secretary Maharashtra government expands agricultural oversight structure Surging Raw Material Costs Hit PVC and Packaging Industries Hard Unseasonal rain, hailstorms, may drag Indian wheat output by over 5% Milky Mist beats FY26 targets, IPO on track, says CEO Delegation to visit Washington as India, US look to revive trade deal talks Only 10% of Indian key reservoirs are filled over 80% IMF warns of deepening global food crisis as fertilizer prices surge Yara India to ramp up digital strategy to strengthen retailer connectivity War-induced risks cushioned by ample buffer for India: World Bank DGS issues direct pass-through of port concessions to exporters amid West Asia crisis Israel allows import of Indian okra seeds, wants virus-free declaration India now seen as ‘safe anchor’, offers stability, predictability and prospects: Shaktikanta Das CropLife asks farmers to tap zaid season window after rabi loss and below normal monsoon ahead Indian trade delegation to visit Washington this month Construction equipment sales fall 13 per cent in FY26 on project delays, weak execution: FADA El Niño threat puts brakes on FY27 auto growth as rural demand risks rise Indian govt hikes NBS fertilizer rates for kharif season by up to 21% to ₹41,533.81 crore
Italy and India: A Strategic Partnership for the Indo-Mediterranean
2026-05-19 · via Economy News, Latest Economic News Today | The HinduBusinessLine

The relationship between India and Italy has now reached a decisive stage. In recent years, our ties have expanded with unprecedented momentum, evolving from a cordial friendship into a special strategic partnership grounded in the values of freedom and democracy, and a common vision for the future.

At a time when the international system is undergoing a profound change, the partnership between Italy and India is guided by regular exchanges at higher political and institutional levels, and is gaining a new and higher dimension that combines our economic dynamism, societal creativity, and millennia-old civilisational wisdom.

Our cooperation mirrors our shared awareness that prosperity and security in the 21st century will be shaped by the ability of nations to innovate, manage energy transitions, and strengthen strategic sovereignty.

To this end, we have committed to deepen and diversify our bilateral relationship with a view to pursuing new objectives and pooling our complementary strengths. We aim to forge a powerful synergy between Italian design, manufacturing excellence, and world-class supercomputers — reflecting Italy’s position as an industrial powerhouse — and India’s rapid economic growth, engineering talent, scale, and innovation and entrepreneurial ecosystem with over 100 unicorns and 200,000 start-ups. This is not a simple integration, but a co-creation of value where our respective industrial strengths amplify one another.

Trade and investment

The free trade agreement (FTA) between the European Union and India paves the way for increased trade and investment in both directions. We want to reach and exceed the Euro 20 billion target for trade between Italy and India by 2029, with a focus on defence & aerospace, clean technologies, machinery, automotive components, chemicals, pharmaceuticals, textiles, agri-food, tourism and more.

“Made in Italy” has always been synonymous with excellence worldwide, and today it finds a natural synergy with the high-quality goals of the “Make in India” initiative. In this context, thegrowing interest of Italian businesses in the production for India and the increasing presence of Indian industries in Italy, numbering over 1,000 from both sides now, is a positive sign that will strengthen the integration of our supply chains.

Technological innovation lies at the very heart of our partnership. The coming decades will be shaped by a technological revolution of unmeasurable scope, marked by advances in sectors such as Artificial Intelligence, quantum computing, advanced manufacturing, critical minerals, and digital infrastructure.

India’s dynamic innovation ecosystem, coupled with highly-skilled professional talent pool, and Italy’s advanced industrial capabilities make our cooperation in the above sectors both natural and strategic. The growing partnership between our universities and research centres will support this. India’s digital public infrastructure is already finding resonance with a large number of countries particularly in the Global South.

AI development

Artificial Intelligence, in particular, is already impacting our societies and the global economy. Italy and India have long been collaborating to ensure that AI development is responsible and human-centred. From this perspective, India and Italy also see AI as a powerful instrument for inclusive development, especially for the Global South, where digital public infrastructure and accessible, multilingual technologies can bridge divides rather than deepen them. Building on India’s vision of MANAV — putting human at the centre of technology — and Italy’s leadership in promoting a human-centric ‘algor-ethics’ rooted in its humanist tradition, our partnership seeks to ensure that AI acts as a catalyst for social empowerment.

Our approach combines India’s digital scale with Italy’s ethical and industrial expertise, ensuring technology serves human dignity. By sharing best practices in secure digital cooperation, capacity-building and resilient cyber infrastructure, we aim to create an open, trustworthy and equitable digital space in which every nation can shape and benefit from AI. This perspective forms the core of Italy’s G7 Presidency and outcomes of the AI Impact Summit 2026, held in New Delhi.

Conceiving AI as a tool created by humans for humans means firmly asserting that technology cannot replace individuals or undermine their fundamental rights, nor be used to manipulate public debate or alter democratic processes. Our approach to defending freedom and human dignity in an increasingly interconnected world hinges on this very challenge.

Our cooperation also covers the space sector. India’s impressive advancements in space exploration and satellite technology, together with Italy’s aerospace engineering excellence, offer significant opportunities for joint initiatives and next-generation technology development.

Security and stability remain essential to ensuring nations’ prosperity. Italy and India intend to further strengthen their cooperation in sectors such as defence, security and strategic technologies. Our collaboration will help ensure the security of critical maritime routes, strengthen resilience in the face of threats, such as terrorism, international criminal networks, drug trafficking, cyber-crimes and human trafficking.

Energy is another key pillar of our partnership. The global transition towards diversified energy sources requires innovation, investment, and cooperation. India and Italy are collaborating from renewable energy to hydrogen technologies, and from smart grids to resilient infrastructure.

While India’s push for becoming a hub for Green Hydrogen exports offers immense potential, it perfectly complements Italy’s advanced technology in renewable infrastructure and its strategic role as an energy gateway for Europe. Our collaboration along with other countries in key India-led initiatives—International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI) and Global Biofuels Alliance (GBA)—is also important in this context.

Physical, digital and human connectivity is the thread that weaves us together. Both India and Italy are located at the very heart of two crucial hubs of the global economy, the Indo-Pacific and the Mediterranean—regions that cannot be viewed as separate spheres, but instead as increasingly interconnected spaces.

New global dynamics

As a matter of fact, we are witnessing the emergence of what might be termed the Indo-Mediterranean, an important corridor for trade, technology, energy, data and ideas tying the Indian Ocean to Europe. It is precisely within this interconnected space that our bond naturally evolves into a special strategic partnership—one that bridges two continents and shapes new global dynamics.

In this context, the India-Middle East-Europe Economic Corridor (IMEC) represents a vision aimed at connecting our regions through modern transport and infrastructure, digital networks, energy systems, and resilient supply chains. India and Italy are also committed to working together with other partners to make this vision a reality.

We can address our shared challenges by drawing upon the profound partnership and the enduring cultural ties between our nations. Within Indian culture, the concept of “Dharma” evokes the sense of responsibility that must guide our actions, whilst the principle of “Vasudhaiva Kutumbakam”—the world is one family—resonates powerfully in this interconnected digital age.

Such values find a natural echo in Italy’s humanist tradition, rooted in the Renaissance, which highlights the dignity of each individual and the power of culture to unite peoples and societies. Our shared vision, therefore, aims to lay the foundation for a strong and forward-looking India-Italy Partnership with our people at the centre.

(Narendra Modi, Prime Minister of India and Giorgia Meloni, President of the Council of Ministers of the Italian Republic)

Published on May 19, 2026