Date : 8/12/2023

Relevance: GS Paper 2- International Relations - Bilateral Relations

Keywords: Raisina Dialogue, Indo-Pacific, Blue-Raman project, India-Middle East-Europe Economic Corridor (IMEC), Chandrayaan-3 mission, G 20

Context-

• The year 2023 has proven to be a watershed moment in the diplomatic relations between Italy and India. Prime Minister Giorgia Meloni's pivotal meeting with Prime Minister Narendra Modi has set the stage for a transformative partnership.
• The subsequent joint statement has not only reinforced the strategic ties but has also paved the way for collaboration in critical sectors such as defense, space, connectivity, mobility, and energy transition.

Maritime Security: A Shared Priority

• Italian Prime Minister Giorgia Meloni's address at the Raisina Dialogue earlier this year underscored Italy's perspective on the Indo-Pacific as an "enlarged Mediterranean." Positioned at the center of the Mediterranean Sea, Italy considers itself a natural bridge to the Indo-Pacific.
• Maritime security emerges as a priority, evident in the visit of the Italian Navy's patrol vessel ITS Morosini to Mumbai in August 2023, signifying a renewed focus on maritime collaboration.
• The joint seminar on maritime security, co-organized with Indian counterparts, highlighted shared interests in surveillance and containment of underwater threats.

Defense Collaboration: A Renewed Framework

• The defense sector has witnessed a significant breakthrough with the renewal of the cooperation agreement during Defense Minister Rajnath Singh's visit to Italy.
• This agreement provides a robust framework for concrete collaboration, with Italian companies eager to contribute cutting-edge solutions. The collaboration not only bolsters defense capabilities but also enhances the stability of the Indo-Pacific region.
• Italy's commitment to play a central role in the region aligns with India's vision for a safe and open Indo-Pacific.

Infrastructure Development: Strengthening Connectivity

• Recognizing the importance of infrastructure for trade and connectivity, Italy and India are committed to strengthening both digital and physical connectivity.
• The Blue-Raman project, with Italian expertise at its core, seeks to bring the Mediterranean and the Indian Ocean closer through a submarine cable system.
• The India-Middle East-Europe Economic Corridor (IMEC) aims to establish a new trade route between Asia and Europe, a project endorsed during the G20 summit in Delhi.
• Italian companies, renowned for their maritime and railway expertise, are poised to play a pivotal role in this ambitious initiative.

Trade Dynamics: Record Levels and Encouraging Trends

• Bilateral trade between India and Italy reached record levels last year, with a positive trajectory continuing into the current year. This surge is particularly evident in the exchange of goods and services, with Italian machinery, automotive products, and luxury goods gaining traction in the Indian market.
• Conversely, Indian products like aluminum, steel, and iron contribute significantly to the supply chain for Italian manufacturing. The robust trade relations reflect a mutually beneficial economic partnership.

People-to-People Contact: A Migration and Mobility Agreement

• India and Italy are keen on fostering people-to-people contact, exemplified by the Migration and Mobility Agreement signed during External Affairs Minister S. Jaishankar's visit to Italy.
• As Italy hosts one of the largest Indian communities in the European Union, this agreement provides a structured framework to enhance mobility.
• It acknowledges the growing number of Indian students and workers enriching the social fabric of Italy.

Exploring the Final Frontier: Space Collaboration

• The space sector has emerged as another frontier for collaboration, with Italy expressing increasing interest in India's space initiatives.
• The success of India's Chandrayaan-3 mission has garnered recognition and celebration from the Italian scientific community. Collaboration between the space agencies of both countries, ASI (Italian Space Agency) and ISRO, extends to government institutions, research centers, and aerospace companies.
• A joint declaration signed recently opens up new opportunities, particularly in earth observation, space exploration, and helio-physics.

Multilateral Engagement: A Convergence of Interests

• Italy and India find common ground on multilateral issues, advocating for a new global agenda. During his visit to Italy, External Affairs Minister S. Jaishankar emphasized the relationship as a "factor of stability" in a volatile world.
• Both nations have demonstrated proactive roles on global issues such as debt relief for developing countries, reform of international financial institutions, sustainable development, and climate change.
• Italy's joining of the Global Biofuels Alliance, initiated by India during its G20 Presidency, further underscores their shared commitment to global challenges.

Looking Ahead: G7 Presidency and Global Leadership

• As Italy prepares to assume the Presidency of G7 in 2024, it recognizes the significance of addressing the concerns of a substantial part of the world, following India's example during its G20 Presidency.
• The partnership between Italy and India becomes instrumental in addressing urgent contemporary issues that primarily affect the Global South, influencing the security, stability, and environmental sustainability of the entire world.

Significance of Italy for India:

• Italy ranks fourth among India's top 5 EU trading partners, with a historical trade balance favoring India.
• Italy, as Europe's second-largest manufacturer, values secure supply chains and rules-based trade. India's Indo-Pacific influence can be leveraged given Italy's export-oriented economy.
• The current Italian government's concerns about China create an opportunity for India to use Italy as an influencer within the EU.

Issues:

• India lacks a separate trade agreement with Italy, unlike England.
• Historical incidents, such as the treatment of Italian Marines and the cancellation of a VVIP chopper deal, strain the relationship.

Conclusion

The dynamic and comprehensive nature of the evolving India-Italy partnership reflects a shared commitment to addressing global challenges. From maritime security to defense collaboration, infrastructure development to trade dynamics, and people-to-people contact to space exploration, the two nations are forging a robust alliance. As they prepare to take on leadership roles in global forums, the India-Italy partnership stands as a beacon of stability and cooperation in uncertain times, contributing significantly to the advancement of shared goals on the world stage.

Source- Indian Express