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India and Italy elevate ties to special strategic partnership, target €20 billion trade by 2029
2026-05-21 · via Business News Today: Latest Business News, Finance News

India and Italy on Wednesday upgraded their ties to a special strategic partnership, firmed up a defence industrial roadmap, and vowed to expand annual trade to Euro 20 billion by 2029, as Prime Ministers Narendra Modi and Giorgia Meloni held wide-ranging talks to enhance bilateral relations in the face of increasing geopolitical upheavals.

The two leaders, delving into global challenges, expressed “deep concern” over the situation in West Asia and its impact on the region as well as the rest of the world, with PM Modi calling for the resolution of the conflict through dialogue and diplomacy.

The two leaders also called for freedom of navigation and the resumption of shipping through the Strait of Hormuz.

Following the Modi-Meloni talks, India and Italy rolled out a defence industrial roadmap paving the way for the co-development and co-production of military hardware and platforms, including helicopters and marine armament.

Additionally, the two nations finalised new frameworks for higher education and the mobility of Indian nurses to Italy. The two sides inked 10 Memorandums of Understanding (MoUs), including agreements to boost partnerships in critical minerals, agriculture, maritime transport and marine products.

Modi landed in Rome on Tuesday in the fourth and final leg of his European tour that was aimed at exploring ways to shore up cooperation in a range of areas, including defence and security, trade and investment, critical technologies and energy.

Defence cooperation, technology and innovation push

In their talks, Modi and Meloni agreed to leverage the opportunities from the India-EU Free Trade Agreement (FTA) that was firmed up in January and called for its early implementation.

“I am delighted that we are upgrading our relations to a special strategic partnership,” Modi said in his media statement.

“The India-Italy Joint Strategic Action Plan 2025-29 provides a practical and futuristic framework for our partnership. We are progressing on it in a timely manner. Through our joint efforts, bilateral trade is rapidly moving towards the target of 20 billion euros,” he said.

In her comments, Meloni underlined the importance of having freedom of navigation in the Indo-Pacific, a region that has witnessed growing Chinese military muscle-flexing.

The Italian prime minister also made a mention of the elevation of India-Italy ties to special strategic partnership from the existing strategic partnership and said the relationship is now capable of “realising its fullest potential”.

In a significant move, the two sides also agreed to establish a foreign ministers-led mechanism to review the India-Italy Joint Strategic Action Plan 2025-29 and provide strategic guidance to the special strategic partnership.

Both Modi and Meloni agreed to further expand collaboration in trade and investment, defence and security, science and technology, research and innovation, space, energy, AI and critical technologies, education, culture and people-to-people ties, according to the Ministry of External Affairs (MEA).

“Technology and innovation are the engines of our partnership. There is immense potential for our cooperation in areas like AI, quantum, space and civil nuclear energy,” Modi said.

“We are working on the India-Italy Innovation Centre to connect the startups, research centres and industries of both countries.” The prime minister said close cooperation between the two countries in the defence and security sector is a symbol of “deep mutual trust”.

“Cooperation is increasing between the defence industries of both countries as well as between our militaries. Our defence industrial roadmap has paved the way for co-development and co-production,” he said.

The two prime ministers welcomed the adoption of a Joint Declaration of Intent and a Defence Industrial Roadmap, which will promote partnerships for technological cooperation, co-production and co-development projects, including helicopters, naval platforms, marine armament and electronic warfare.

Both sides also agreed to launch a Dialogue on Maritime Security, with the aim of increasing maritime security cooperation, coordination, and the exchange of information and best practices in the maritime domain.

In his comments, Modi said both sides will work together on shipping, port modernisation, logistics, and the blue economy.

“We also discussed expanding our win-win partnership to third countries. Moving forward in this direction, we agreed to work on concrete projects in Africa.”

Global issues, terrorism and strategic connectivity

The prime minister also asserted that India and Italy are unanimous that terrorism poses a serious challenge to humanity and that the joint initiative between the two sides against terror financing has set an important example for the entire world.

“India and Italy have sent a clear message that responsible democracies not only condemn terrorism but also take concrete steps to disrupt its financial networks,” he said.

“We have been in constant contact regarding Ukraine, West Asia, and other tensions. India’s view is clear that all problems should be resolved through dialogue and diplomacy,” he said.

The two prime ministers reaffirmed their commitment to cooperate on the India-Middle East-Europe Economic Corridor (IMEC), recognising its transformational potential in reshaping and promoting global trade, connectivity and prosperity. Appreciating the preliminary discussions around the project, they encouraged the first IMEC Ministerial meeting to take concrete steps for advancing this initiative in 2026.

Modi and Meloni agreed to enhance the mobility of students, researchers and skilled workers, particularly in STEM (Science, Technology, Engineering, and Mathematics) sectors, and to expand cooperation on skills development, in line with the needs of the labour market, including through a specific joint declaration of intent on the facilitation of mobility of nurses from India to Italy.

The two prime ministers also welcomed ongoing collaboration between the Italian Space Agency and the Indian Space Research Organisation, and efforts to strengthen commercial space collaboration.

Modi and Meloni strongly condemned terrorism and violent extremism in all its forms, including cross-border terrorism, according to a joint declaration.

It said the two leaders reiterated their commitment to cooperate in the fight against terrorists and terrorist groups and their affiliates, including those listed in the UN Security Council 1267 Sanctions regime.

“They called upon all countries to continue to work towards eliminating terrorist safe havens and infrastructure, disrupting terrorist networks and combating the financing of terrorism, consistent with the Financial Action Task Force’s guidelines,” according to the joint declaration.

Both leaders welcomed the finalisation of an MoU between the Italian Guardia di Finanza and the Directorate of Enforcement of India and looked forward to the early conclusion of another agreement on exchange and mutual protection of classified information.

Published on May 21, 2026