Italy is one of India’s most important economic partners in the European Union. It is India’s fourth-largest trading partner in the EU, while India is Italy’s 14th largest import source. In 2025, bilateral trade reached €14.25 billion, with India’s exports at €8.55 billion and Italy’s exports to India at €5.70 billion. The balance was in India’s favour by €2.85 billion.
The two countries have set a target to raise annual bilateral trade to €20 billion by 2029. It is supported by business forums, official visits, Italian funding support for companies, Indian investments in Italy, Italian companies in India, science and technology cooperation, food processing dialogue, renewable energy engagement and a stronger connectivity conversation through IMEEC.
Italy has also identified India as a priority country under its global trade strategy. This gives the relationship a rare clarity: both sides see the other not as a distant market, but as a serious economic partner.
In Numbers
EU ranking: Italy is India’s fourth-largest trading partner in the European Union.
Import source ranking: India is Italy’s 14th largest import source.
Indian exports in 2025: India exported goods worth €8.55 billion to Italy.
Italian exports in 2025: Italy exported goods worth €5.70 billion to India.
Trade balance: The 2025 balance was in India’s favour by €2.85 billion.
Trade target: India and Italy aim to raise annual bilateral trade to €20 billion by 2029.
Goods trade in 2024–25: Total goods trade stood at US$ 13.74 billion in 2024–25.
Goods surplus: India’s goods trade balance with Italy was US$ 1.72 billion in 2024–25.
April 2025–January 2026 trade: Total trade during this period stood at US$ 12.01 billion.
Services trade: Trade in services stood at €1.33 billion in 2025.
Services imports from India: Italy imported services worth €653.88 million from India in 2025.
Services exports to India: Italy exported services worth €676.03 million to India in 2025.
Service categories: India’s listed service exports included travel, transport, intellectual property charges, telecom, computer and information services.
Remittances: Remittances from Italy to India reached €594.02 million in 2025.
Remittance rank: India ranked second in outward remittances from Italy in 2025.
Italian FDI rank: Italy ranked 19th in FDI inflows into India from April 2000 to September 2025.
Italian FDI value: Italian FDI inflows into India stood at US$ 3.66 billion during April 2000–September 2025.
Indian FDI in Italy: Indian direct investment in Italy is approximately €490 million.
Major Indian deal: Tata Motors’ €3.8 billion acquisition of Iveco Group is the most significant Indian investment in Italy so far.
Italian corporate base: Around 800 Italian companies are present in India across diverse sectors.
Indian corporate base: Indian companies in Italy are mainly in IT, electronics and engineering.
India–Italy Goods Trade Snapshot
Indicator
2025 / Latest Available Figure
Explainer
Bilateral trade in 2025
€14.25 billion
Shows the current euro-denominated trade scale.
India’s exports to Italy in 2025
€8.55 billion
India exported more to Italy than it imported.
Italy’s exports to India in 2025
€5.70 billion
Italy’s exports to India rose by 9.42% over 2024.
Trade balance in 2025
€2.85 billion in India’s favour
Confirms an Indian trade surplus.
Target by 2029
€20 billion annual trade
Sets the ambition for the next phase.
Total goods trade, 2024–25
US$ 13.74 billion
Latest complete year in the supplied dollar table.
India’s exports, 2024–25
US$ 7.73 billion
Goods exported by India to Italy.
India’s imports, 2024–25
US$ 6.01 billion
Goods imported by India from Italy.
India’s trade balance, 2024–25
US$ 1.72 billion surplus
India remained in surplus in goods trade.
April 2025–January 2026 trade
US$ 12.01 billion
Indicates strong trade activity during the next cycle.
Bilateral Goods Trade: 2021–22 to 2024–25
Year
India’s Exports to Italy
India’s Imports from Italy
Total Trade
Balance in India’s Favour
2021–22
US$ 8.18 billion
US$ 5.05 billion
US$ 13.23 billion
US$ 3.13 billion
2022–23
US$ 8.69 billion
US$ 5.56 billion
US$ 14.25 billion
US$ 3.13 billion
2023–24
US$ 8.77 billion
US$ 5.80 billion
US$ 14.57 billion
US$ 2.97 billion
2024–25
US$ 7.73 billion
US$ 6.01 billion
US$ 13.74 billion
US$ 1.72 billion
Services Trade and Remittances
Indicator
2025 Figure
What It Shows
Total services trade
€1.33 billion
Services are a meaningful pillar of the economic relationship.
Italy’s services imports from India
€653.88 million
Italy bought a sizeable volume of services from India.
Growth in Italy’s services imports from India
+19.94% over 2024
India’s services exports to Italy grew strongly.
Italy’s services exports to India
€676.03 million
Italy remained slightly ahead in services exports.
Change in Italy’s services exports to India
-6.18% over 2024
Italian services exports declined compared with 2024.
Remittances from Italy to India
€594.02 million
A major people-linked economic flow.
Growth in remittances
+32.8% over 2024
Shows a sharp increase in money sent to India.
India’s rank in outward remittances from Italy
Second
Underlines the economic importance of the Indian community in Italy.
Export and Import Items: What the Supplied Brief Allows
The brief provides numerical goods trade data but does not itemise India’s goods exports to Italy or India’s goods imports from Italy. It does, however, identify the major service export categories from India.
Category
Items / Sectors Mentioned
Safe Editorial Use
India’s service exports to Italy
Travel, transport, charges for use of intellectual property, telecommunications, computer and information services
These can be described as listed service export categories.
Goods exports from India to Italy
Not itemised in the supplied input
Avoid naming goods categories unless another authorised input is provided.
Goods imports from Italy to India
Not itemised in the supplied input
Avoid unsupported product listing.
Italian company sectors in India
Fashion, garments, textiles and textile machinery, automotive and components, infrastructure, chemicals, energy, confectionery and insurance
These describe Italian business presence, not necessarily import items.
Indian company sectors in Italy
IT, electronics and engineering
These describe Indian investment and company presence.
FDI, Companies and Investment Architecture
Area
Detail
Economic Meaning
Italian FDI rank in India
19th
Italy is a recognised source of FDI into India.
Italian FDI inflows into India
US$ 3.66 billion
Covers April 2000 to September 2025.
Top Italian FDI sector: automobiles
29.8%
Automobiles dominate Italian FDI into India.
Trading sector share
17.1%
Trading is the second major FDI segment.
Industrial machinery share
5.6%
Reflects Italy’s industrial strength.
Services share
5.1%
Services also attract Italian investment.
Electrical equipment share
4.6%
Adds an engineering and manufacturing layer.
Italian investments in India, first half of 2025
Over €500 million
Shows recent investment momentum.
Indian FDI in Italy
Approx. €490 million
India’s direct investment base in Italy.
Major Indian investment
Tata Motors’ €3.8 billion acquisition of Iveco Group
