Italy’s Deputy PM’s visit signals push to deepen India economic ties

New Delhi: Italy’s Deputy Prime Minister Antonio Tajani’s recent visit to India, marked by his engagement with the National Stock Exchange (NSE) in Mumbai, signals a calibrated push to deepen economic, financial and investment ties with New Delhi at a time when Indian entrepreneurs are actively seeking stable European partners.

Yield spreads on Italian sovereign bonds have narrowed significantly since mid-2022 and are now close to French levels, indicating reduced risk perceptions. For Indian pension funds, insurance companies and global asset managers based in India, this signals a mature market with predictable returns.

The dialogue between Italian and Indian Funds and financial stakeholders which has followed immediately after DPM Tajani’s visit at the NSE is an initiative that businessmen and entrepreneurs are keenly observing.

From an Indian perspective, the visit is significant not merely as a diplomatic gesture but as an opportunity window. Italy is projecting itself as a financially disciplined economy within Europe, with its fiscal deficit projected at around 3 per cent of GDP in 2025, lower than that of France and comparable to Germany, DPM Tajani added.

“Finance can play an essential role in Italy-India relations. It can build confidence among investors and multiply business opportunities, “according to him.

Its sovereign credit ratings have improved over the past two years, while employment indicators show steady gains, reflecting macroeconomic stability that matters to Indian investors evaluating overseas expansion.

For Indian entrepreneurs and institutional investors, Italy’s bond and equity markets present concrete entry points. Italian government bond auctions continue to attract strong international demand, with high liquidity and moderate secondary-market volatility, DPM Tajani explained.