Italy alternative entry point into Europe for Indian firms: Envoy
NEW DELHI: Italy sees itself as an alternative entry point to European markets for Indian firms following Britain’s exit from the European Union (EU), and the large Indian diaspora can help drive trade and investment, Italian ambassador Vincenzo de Luca has said.
“There is certainly potential to attract more investment [and] more companies from India to Italy. We have already had increase in the number of Indian companies investing in Italy,” he said in an interview.
Italy has facilitation and incentives to attract foreign investors, and there is potential in both the greenfield sector, or opening of subsidiaries by Indian firms, and the brownfield sector, or acquisition of existing facilities by Indian firms, he said.
“There is already some investment from India in the brownfield sector in steel and automotive design,” de Luca said, adding the legendary Pininfarina car design firm is now owned by India’s Mahindra Group.
The UK is currently home to more than 800 Indian firms, many of which use the country as a base for European operations. Brexit has caused uncertainty about future operations, at least until the UK and the EU work out new trading arrangements, and several European countries are eager to woo such firms.
De Luca highlighted the role the Indian diaspora of 180,000 in Italy – the largest Indian community in an EU state following UK’s exit from the bloc – could play in driving trade and investment.
“This community is an asset for bilateral relations and we have to promote more people-to-people relations. The Indian community is well integrated in the Italy territory,” he said.
The Indians, mainly from Punjab, are very active in sectors such as food processing and it is in the interest of both governments to “make their life easier in Italy and also invest through this community in Italy”, he added.
The Italian envoy said the two sides have been able to overcome the setback caused by the case of two Italian marines who were accused of killing two Indian fishermen off the Kerala coast in 2012.
Though the International Court of Arbitration is currently hearing Italy’s request for dropping the criminal prosecution of the marines, the two sides “have found a way to move on”, he said.
“My predecessor [and the] Indian and Italian governments have done a lot in the last few years... So the relationship has improved. Now we have the momentum to really promote a long-term strategic partnership between Italy and India,” he said.
In addition to efforts to re-launch negotiations for a free trade agreement between EU and India, there is a lot of potential for New Delhi and Rome to work together as the two sides “share the same values for multilateralism, rules-based trade, sustainable development, commitment to tackle climate change, partnership on digital economy and on security matters”, de Luca said.