Bengaluru, Apr 1 (KNN) Trade between India and Italy is projected to soar by 10-15 per cent annually over the next 4-5 years, according to Claudio Maffioletti, CEO of the Indo-Italian Chamber of Commerce and Industry.

During the inauguration of the Chamber’s new office in Bengaluru, Maffioletti pointed out that this bullish outlook comes as interest from companies in both nations to explore business opportunities in each other's markets is witnessing an upswing, reported DH.

Bilateral trade hit a record 15 billion euros in 2022, with Indian exports accounting for 10 billion euros and imports from Italy making up the balance. The latter slightly increased in 2023, Maffioletti noted.

As of January 2024, over 780 Italian companies had established a presence in India, with 40-45 per cent operating manufacturing facilities locally. Collectively, these firms have invested upwards of 18 billion euros in the country since 2014.

While the traditional sectors like metals and steel continue to draw Indian companies to Italy, their foray has expanded into pharma, healthcare, automotive and auto components recently.

Around 100-120 Indian firms currently have a presence in the Mediterranean nation. The Chamber's newly inaugurated office in Bengaluru underscores southern India's emergence as a burgeoning business frontier. 20-25 per cent of the 780 Italian companies operating in India are headquartered in this region, a technology services powerhouse.

Maffioletti envisions scope for the region to advance manufacturing technologies, an area that accounts for a sizeable portion of Italy's investments in India. This includes precision machinery for the aerospace sector and tech integration into manufacturing processes.

Despite hurdles like pricing and customising products for the local market, Maffioletti anticipates the trade relationship to remain on an upward trajectory. This will be buoyed by rising purchasing power allowing more Indians to indulge in high-quality, premium Italian products.

The two nations are also addressing labour force issues through a first-of-its-kind migration and mobility pact to be inked in April. This will facilitate easier visa processes for students and skilled workers looking to contribute to sectors like health, construction and hospitality in Italy.

(KNN Bureau)