India, Italy discuss deeper trade ties in clean energy, agri-tech: Finmin

FM Nirmala Sitharaman

India and Italy on May 5 discussed opportunities to scale up bilateral trade and investment, with a sharp focus on clean energy, agri-food processing, and digital innovation, during a meeting between Finance Minister Nirmala Sitharaman and her Italian counterpart Giancarlo Giorgetti on the sidelines of the Asian Development Bank’s (ADB) 58th annual gathering in Milan.

The two leaders reviewed progress under the Joint Strategic Action Plan 2025–2029, which was launched by Prime Minister Narendra Modi and Italian Prime Minister Giorgia Meloni last November. The plan is aimed at giving fresh momentum to economic cooperation in key sectors over the next five years.

India’s trade with Italy touched US $14.56 billion in FY24. Calling it a “strong base” for future growth, Sitharaman flagged the untapped potential in sectors such as renewable energy, high-end manufacturing, digital technologies and food processing. She urged Italian firms to explore investment opportunities under India’s Production-Linked Incentive (PLI) schemes.

The Finance Ministry said the meeting also focused on ways to align India-Italy engagement with evolving global challenges, particularly in climate action, development finance, and digital transformation.

Sitharaman highlighted India’s public digital infrastructure stack - including Aadhaar, Unified Payments Interface (UPI), and DigiLocker - as examples of scalable, inclusive models. She proposed a partnership to develop fintech solutions tailored to global south economies.
Reform of multilateral development banks (MDBs) was another key focus area. India emphasised the need for MDBs to be more responsive to developing countries, with enhanced capitalisation and stronger alignment with the Sustainable Development Goals (SDGs).

Sitharaman also emphasised the scope for co-financing models and joint ventures in green hydrogen, carbon capture, energy efficiency, and circular economy. “Both nations can leverage their strengths to co-develop solutions for global markets, advancing our climate commitments,” the Finance Ministry said in a statement on social media platform X.

The Milan meeting adds to a string of high-level bilateral engagements at the ADB event, where India is positioning itself as a key driver of private sector-led growth and digital innovation in the region.