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Modi, Meloni target €20B trade goal with new strategic business pact.

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India and Italy have strengthened their diplomatic ties by upgrading their relationship to a special strategic partnership, with a mutual goal to boost bilateral trade to €20 billion by 2029. During discussions between Indian Prime Minister Narendra Modi and Italian Prime Minister Giorgia Meloni, both leaders committed to fostering cooperation to uphold international order amid current geopolitical tensions. The talks, which took place during Modi’s visit to Rome, emphasized the importance of de-escalation and diplomacy in addressing global conflicts, particularly in Ukraine and West Asia. Both leaders also advocated for freedom of navigation and the continuation of shipping through the Strait of Hormuz.

Prime Minister Modi’s trip to Rome is part of a broader five-nation tour aimed at improving India’s energy security and enhancing collaboration in sectors such as defense, trade, emerging technologies, and critical minerals. During their meetings, Modi and Meloni endorsed the forthcoming India-European Union (EU) free trade agreement as a tool to enhance economic ties. Modi expressed enthusiasm for the upgraded partnership, noting that the India-Italy joint strategic action plan for 2025-29 provides a solid framework for future collaboration. Meloni highlighted the significance of Italy and India working together to ensure freedom of navigation in the Indo-Pacific and to strengthen connectivity between this region and the Mediterranean through the India-Middle East-Europe Economic Corridor (IMEC).

Both leaders have been in continuous dialogue regarding the crises in Ukraine and West Asia. Modi reiterated India’s stance on resolving issues through dialogue and diplomacy, while Meloni stressed the necessity for a lasting peace in Ukraine and expressed optimism for peace negotiations concerning the Iran crisis. The two nations agreed to establish a mechanism led by their foreign ministers to review and guide their joint strategic action plan for 2025-29. This plan aims to expand cooperation across various domains, including trade, defense, science, technology, and education.

The partnership between India and Italy is poised to make significant strides in technology and innovation. Modi emphasized the vast potential for joint efforts in areas like artificial intelligence, quantum computing, space, and civil nuclear energy. Plans are underway to create the India-Italy Innovation Centre, which will connect startups, research institutions, and industries from both countries. In defense, increased collaboration is anticipated, with a roadmap encouraging co-development and co-production between the defense industries and militaries of both nations. Additionally, the two countries plan to enhance the mobility of students, researchers, and skilled workers, particularly in STEM fields, and to cooperate on skills development aligned with labor market needs, including facilitating the movement of Indian nurses to Italy.

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