In recent developments, India and Italy have issued a Joint Statement on their Strategic Partnership in Energy Transition following a bilateral meeting. This action underscores the nations’ substantial advancement in bilateral relations after adopting the Action Plan for an Enhanced Partnership between India and Italy (2020 –2024) in November 2020.
Establishing the Joint Working Group
The Joint Working Group is set to explore collaborations in multiple areas as mandated by both nations. Key areas include Smart Cities, mobility; smart-grids, electricity distribution and storage solutions. The focus also extends to gas transportation and promoting natural gas as a bridge fuel. Other areas of exploration encompass integrated waste management, which is encapsulated under the “waste-to-wealth” initiative, and green energies, such as green hydrogen, Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), bio-methane, bio-refinery, second-generation bio-ethanol, castor oil, and bio-oil – waste to fuel. The inception of the Joint Working Group was marked by the signing of the Memorandum of Understanding on Cooperation in the field of Energy in Delhi in October 2017.
Green Corridor Project: A Collaborative Pursuit
Building on their common objectives, both countries are considering joint support for a large-scale green corridor project in India. This initiative aligns with India’s ambitious goal of producing and integrating 450 GW of renewable energy by 2030. The Green Energy Corridor Projects aim to synchronize electricity produced from renewable sources, like solar and wind, with conventional power stations in the grid.
Encouraging Investments in Energy Transition
In a bid to accelerate energy transition, India and Italy are encouraging joint investments by their companies in relevant fields. They plan to share valuable information and experiences, especially regarding policy and regulatory framework. This includes facilitating the transition to cleaner and commercially viable fuels/technologies, long-term grid planning, incentivizing schemes for renewables and efficiency measures, and financial instruments for hastening clean energy transition.
The Strategic Importance of Italy for India
In 2021, India and Italy are celebrating their 73rd year of diplomatic relations. Recently, Italy highlighted India as one of the top five priority countries for internationalization of business. Recognizing India’s geopolitical and economic significance, Italy is making active efforts to elevate their relations. The economic value of their relationship can be gauged from the fact that Italy is the world’s eighth-largest economy and third-largest in the Eurozone. Meanwhile, India is the sixth-largest economy and a lucrative market for over 600 Italian companies operating in India.
Italy has been supportive of India’s membership to export control regimes like the Missile Technology Control Regime (MTCR), Wassenaar Arrangement, and the Australia Group. It hosts the third largest Indian community in the European Union, with an estimated 180,000 people, primarily engaged in the agriculture and dairy industry.
In post-Brexit Europe, Italy, being part of the European Union, can serve as a crucial partner and a favorable base for Indian companies operating in Europe. Both regions are strategic in terms of maritime trade, with the Indo-Pacific emerging as a leading route and the Mediterranean Sea as a natural point of arrival for Asian ship cargo. Joint operations in these areas would imply promoting values like democracy, free trade, security, and rule of law, indicative of India and Italy’s international behaviour.
Going forward, in 2021 and 2023, Italy and India will preside over the G20, which is expected to be a critical phase in the global economy’s recovery and inter-state relations post-Covid-19 pandemic. Recently, Italy has also joined the International Solar Alliance (ISA).
Last Modified: February 13, 2024