European Union has emerged as India’s number one trading partner, according to Italy’s top diplomat in New Delhi. This revelation comes at a time when India is aggressively expanding its global trade footprint.
Ambassador Vittorio Sandalli made the remarks during an interactive session with Indian industry leaders. He detailed how EU-India commerce has outpaced other major economies, fueled by shared democratic values and market synergies.
Official statistics reveal EU imports from India hit €50 billion annually, dominated by organic chemicals, textiles, and auto components. Conversely, India sources advanced machinery, chemicals, and luxury goods from the 27-nation bloc.
‘Our trade relationship exemplifies resilience amid global disruptions,’ Sandalli stated. Italian exports to India grew 12% year-on-year, particularly in high-value segments like precision instruments and fashion.
The envoy spotlighted Italy’s contributions through investments exceeding €10 billion across manufacturing and infrastructure. Companies like Enel Green Power and Leonardo are deepening their Indian footprints.
Yet, the path forward isn’t without obstacles. Intellectual property concerns, sanitary standards, and services trade liberalization remain sticking points in FTA negotiations launched in 2022.
Sandalli advocated for ‘business-first’ approaches, encouraging SMEs from both regions to collaborate on sustainable development goals. He specifically mentioned opportunities in electric vehicles and circular economy initiatives.
This development aligns with India’s ‘Make in India’ vision and EU’s ‘Global Gateway’ strategy. Successful FTA conclusion could boost bilateral trade by 50% within five years, projections indicate.
Stakeholders view the ambassador’s comments as a diplomatic nudge towards faster resolutions. With elections influencing EU policy directions, timing could be crucial for sealing the deal.
Ultimately, this trade primacy signals India’s rising stature in European economic calculations, promising mutual prosperity in an interconnected world.