India-Italy target €20 billion trade by 2029 as Modi, Meloni elevate ties to ‘Special Strategic Partnership’

India and Italy on Wednesday elevated bilateral relations to a “Special Strategic Partnership”, signalling a major push to deepen cooperation in trade, investment, technology and strategic sectors as Prime Minister Narendra Modi held wide-ranging talks with his Italian counterpart Giorgia Meloni in Rome.

The two countries also reaffirmed their ambition to scale annual bilateral trade to €20 billion by 2029 from around €14.25 billion in 2025, amid growing momentum in India-Europe economic engagement and ongoing negotiations for the India-European Union Free Trade Agreement (FTA).

“We deliberated extensively on enhancing India-Italy ties,” PM Modi said after the talks, adding that the relationship was now “capable of realising its fullest potential”. Meloni described the move as “the highest level ever reached between the two countries”.

Trade, investment and FTA take centre stage

India’s exports to Italy stood at €8.55 billion in 2025, while Italian exports to India were recorded at €5.70 billion, taking total bilateral trade to €14.25 billion — an increase of over 9% from the previous year.

“We certainly want to further strengthen our trade ties. Bilateral trade stands at 14 billion euros today and we hope to take it to 20 billion euros by 2029,” Meloni said, while underlining the importance of the proposed India-EU FTA in achieving the target.

PM Modi thanked Italy for supporting the India-EU trade pact and said both sides would work towards its early implementation “so that the business community can fully benefit from it”. Italy is currently India’s fourth-largest trading partner within the European Union.

The two leaders also reviewed the India-Italy Joint Strategic Action Plan 2025-2029, which outlines cooperation across sectors including manufacturing, energy transition, mobility and innovation.

AI, startups and innovation emerge as new growth drivers

Technology collaboration emerged as a key pillar of the upgraded partnership, with both countries identifying artificial intelligence, quantum technologies, space and civil nuclear energy as strategic areas of cooperation.

“India and Italy share immense potential for cooperation in areas such as AI, quantum technology, space and civil nuclear energy,” PM Modi said.

The Prime Minister also announced the setting up of an India-Italy Innovation Centre aimed at linking startups, research institutions and industries from both countries. Meloni said the initiative would help foster collaboration between “talents, innovative ecosystems, enterprises, universities and research institutes”.

Strategic alignment widens beyond economics

The discussions also covered defence cooperation, clean energy and the India-Middle East-Europe Economic Corridor (IMEC), which both sides see as a critical connectivity and trade initiative.

PM Modi said India and Italy “stand together against terrorism”, reflecting broader strategic convergence between the two nations.

The two leaders, who have met seven times over the past three-and-a-half years, also highlighted the growing people-to-people ties. Italy hosts nearly 1.87 lakh Indians — the largest Indian diaspora community in the EU — while more than 5,100 Indian students are currently studying in Italian universities.