New Delhi/Rome, 31 July 2025 – Italy has launched a €500 million concessional export finance facility for India. The move aims to support Italian companies investing, expanding, and integrating into Indian supply chains. The decision came from the Facilitation Committee chaired by the Ministry of Foreign Affairs and International Cooperation (MAECI), alongside the Ministry of Economy and Finance and the Ministry of Enterprises and Made in Italy.
Key Details of the Facility
The new India-focused facility totals €500 million. It will fund investment and expansion plans by Italian firms operating in India. The eligibility covers both direct exporters and companies working within export-linked supply chains.
In addition, the Committee approved €81.7 million in SIMEST-managed concessional loans for 164 firms. These loans will help in digital upgrades, green projects, trade fair participation, market entry, hiring export managers, and launching e-commerce platforms. Targeted lines for Africa, Latin America, the US, and Spain were also cleared.
Strengthening India–Italy Economic Ties
The facility builds on recent high-level engagement. In June 2025, India’s Commerce & Industry Minister Piyush Goyal visited Italy. He co-chaired the 22nd India–Italy Joint Commission for Economic Cooperation (JCEC) with Deputy Prime Minister and Foreign Minister Antonio Tajani.
Both sides identified opportunities in Industry 4.0, aerospace, energy transition, sustainable mobility, agriculture, food processing, and connectivity projects such as the India–Middle East–Europe Economic Corridor (IMEC). Italian firms can now use the new funding to target these sectors.
How the Finance Will Work
The India facility is part of Italy’s Export Action Plan to diversify markets for “Made in Italy” products and boost internationalisation. Companies embedded in supply chains for the Indian market can apply, even if they do not export directly.
Italy has also strengthened on-ground support in India. A SIMEST office in New Delhi now manages a dedicated €500 million line for SMEs planning India-focused projects. This signals long-term policy commitment to the market.
Supply Chain Opportunities
Italy’s industrial districts – 160 clusters that produce 25% of national manufacturing exports (€150 billion in 2023) – are key drivers of its export power. Under SACE’s SPARKLING strategy, these districts are becoming more innovative, sustainable, and globally connected. This aligns with India’s growing demand for advanced manufacturing and technology partners.
In agri-food, India’s sector has grown 8.4% annually and continues to attract foreign investment. Italian exports such as apples, kiwis, and confectionery are well-established, but there is room for joint ventures in dairy, fruit, and vegetables with Indian cooperatives.
Impact for Businesses
Over 700 Italian companies already operate in India, employing about 60,000 people and generating €9.7 billion in turnover. Key hubs include Delhi–Gurgaon–Noida, Mumbai–Pune, Chennai, and Bengaluru, with new growth in Gujarat and Rajasthan.
The facility offers Italian companies concessional financing to scale in advanced manufacturing, clean energy, and mobility. For Indian partners, it promises deeper collaboration with Italian OEMs and SMEs, opening new supply-chain opportunities in high-growth sectors.
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Courtesy: esteri.it, pib.gov.in, indianembassyrome.gov.in, mea.gov.in, mea.gov.in
