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International Relations May 20, 2026 6 min read Daily brief · #1 of 42

India-Italy ties hit sweet spot: Deals on defence, critical minerals

India and Italy finalised a Defence Industrial Roadmap during the Rome summit (May 19–20, 2026) covering co-development and co-production of helicopters, nav...

GS Paper 2 (International Relations) GS Paper 3 (Economy Science & Technology)

What Happened

  • India and Italy finalised a Defence Industrial Roadmap during the Rome summit (May 19–20, 2026) covering co-development and co-production of helicopters, naval platforms, marine armaments, and electronic warfare systems.
  • An MoU on Critical Minerals was signed, prioritising sustainable and diversified supply chains including through recovery from unconventional sources such as e-waste (urban mining) and mine tailings.
  • The two sides set a target of raising bilateral trade to €20 billion by 2029 from the current ~€14 billion level, with defence and aerospace identified as a priority sector alongside clean technologies, machinery, and pharmaceuticals.
  • Maritime cooperation pacts were also signed, covering cooperation in maritime transport and maritime security.
  • The INNOVIT India hub was launched to link innovation ecosystems in AI, quantum computing, semiconductors, fintech, energy, and logistics.
  • The summit concluded with the formal elevation of ties to a Special Strategic Partnership, institutionalising annual summit-level meetings and a Foreign Ministers-led review mechanism.

Static Topic Bridges

India's Defence Industrial Policy: From Import to Co-development

For decades, India was the world's largest arms importer, reflecting a policy of procurement-over-production that left its defence industry dependent on foreign platforms and spare parts. A systematic shift began with the establishment of the Make in India programme in 2014, which identified defence as a focus sector. The Defence Procurement Procedure (DPP) was replaced by the Defence Acquisition Procedure (DAP) 2020, which created a preference hierarchy favouring indigenously designed and manufactured products. The draft DAP 2026 goes further, defining indigenisation as requiring Indian companies to own the design, software, and upgrade rights — not merely manufacture the product on licence.

  • India's defence export target: ₹50,000 crore by 2029–30 (from ₹23,622 crore in FY 2024–25, itself a record).
  • Two Defence Industrial Corridors — Uttar Pradesh (Lucknow-Agra-Kanpur-Aligarh) and Tamil Nadu (Chennai-Coimbatore-Hosur) — provide land and infrastructure for domestic and foreign defence manufacturers.
  • The iDEX (Innovations for Defence Excellence) platform supports deep-tech startups for defence applications.
  • Italy's defence companies — Leonardo (helicopters, avionics, electronics) and Fincantieri (naval vessels) — have existing ties with India's defence procurement ecosystem.
  • India's defence co-development partnerships: France (Rafale, submarines under Project 75I), Russia (BrahMos, S-400), US (GE engines for AMCA), and now Italy (helicopters, naval armaments).

Connection to this news: The India-Italy Defence Industrial Roadmap directly implements DAP 2026's co-development and technology-ownership priorities, targeting platform categories — naval vessels, electronic warfare, rotary-wing aircraft — where India has existing import dependencies that could be converted into domestic production through Italian technology partnerships.

Critical Minerals: National Policy and International Supply Chain Strategy

Critical minerals are materials deemed essential for modern technologies (clean energy, electronics, defence) whose supply chains are concentrated in a small number of countries, creating strategic vulnerability. India notified a list of 30 critical minerals in 2023 under the Ministry of Mines, covering lithium, cobalt, nickel, graphite, rare earth elements, and others. The National Critical Minerals Mission (launched 2025) targets domestic exploration, processing capacity, and international supply chain partnerships. India has pursued bilateral MoUs on critical minerals with Australia, Japan, Argentina, Brazil, and now Italy.

  • China controls approximately 60% of global rare earth processing capacity, making supply chain diversification a strategic imperative for India, the EU, and the US.
  • Italy's contribution to the MoU involves expertise in urban mining (extracting critical minerals from e-waste) and mine tailings processing — emerging approaches that reduce dependence on primary extraction.
  • India is a member of the Minerals Security Partnership (MSP), a US-led coalition of 14 countries established in 2022 to build secure critical mineral supply chains.
  • India's KABIL (Khanij Bidesh India Ltd.) — a joint venture of NALCO, HCL, and MECL — was established in 2019 to acquire critical mineral assets abroad.

Connection to this news: The India-Italy MoU on critical minerals diversifies India's supply chain strategy into the European sphere, while Italy's focus on urban mining and secondary recovery complements India's primary exploration partnerships with Australia and Latin America. Together, they represent a comprehensive approach across the full minerals value chain.

Maritime Cooperation and India's Blue Economy

Maritime transport cooperation has become a central element of India's strategic partnerships, reflecting both economic dependence on sea lanes and the growing salience of the Indo-Pacific as a strategic theatre. India's Sagarmala Programme (2015) focuses on port-led development, coastal shipping, and fisheries. At the diplomatic level, India has signed White Shipping Agreements, Maritime Domain Awareness pacts, and BECA (Basic Exchange and Cooperation Agreement) equivalents with key naval partners.

  • India has the world's second-largest coastline among developing nations (~7,516 km) and 13 major ports.
  • The India-Italy maritime cooperation agreement covers maritime transport — relevant to the Italy-India shipping route through the Red Sea and Suez Canal, which was severely disrupted by Houthi attacks in 2023–24.
  • Italy is a major Mediterranean naval power and a key NATO member, giving it strategic relevance for sea lane security from the Gulf to the Mediterranean.
  • Project Sagar (Security and Growth for All in the Region), India's Indian Ocean maritime engagement strategy, provides the strategic framework for India's bilateral maritime partnerships.

Connection to this news: Maritime transport cooperation between India and Italy addresses the practical logistics of bilateral trade — improving port connectivity, shipping routes, and maritime security — which directly supports the goal of raising bilateral trade to €20 billion by 2029.

India's Innovation Ecosystem and Tech Diplomacy

India's technology diplomacy has evolved from episodic engagements to structured institutional frameworks. The most prominent bilateral example is the iCET (Initiative on Critical and Emerging Technologies) with the United States, launched in 2023, which covers semiconductors, AI, quantum computing, space, and defence. Similar though less comprehensive frameworks exist with Japan, Australia, and the EU (through the Trade and Technology Council). The Startup India programme (2016) provides the domestic policy foundation, while bilateral innovation hubs such as INNOVIT India extend these ecosystems internationally.

  • India has over 110,000 recognised startups (as of 2024), making it the world's third-largest startup ecosystem by number.
  • Italy is home to globally significant industrial companies in robotics, precision engineering, aerospace, and energy technology — sectors where Indian startups and research institutions have active interest.
  • The India-EU Trade and Technology Council (TTC), established in 2023, provides a multilateral frame within which Italy-specific tech cooperation can be embedded.
  • Quantum computing: India launched the National Quantum Mission in 2023 with a budget of ₹6,003 crore over 8 years, targeting quantum computers with 50–1,000 qubits.

Connection to this news: INNOVIT India represents the tech diplomacy dimension of the Special Strategic Partnership, creating a people-to-people and institution-to-institution innovation channel that complements the defence and trade tracks of the upgraded bilateral relationship.

Key Facts & Data

  • India-Italy bilateral trade: ~€14 billion currently; target €20 billion by 2029
  • India's defence exports FY 2024–25: ₹23,622 crore (record); target ₹50,000 crore by 2029–30
  • India's 30 critical minerals list notified: 2023 (Ministry of Mines)
  • National Critical Minerals Mission: launched 2025
  • KABIL (Khanij Bidesh India Ltd.): established 2019 for overseas mineral asset acquisition
  • India's Minerals Security Partnership membership: established 2022; 14 member countries
  • India's coastline: ~7,516 km; 13 major ports
  • National Quantum Mission: ₹6,003 crore over 8 years (approved 2023)
  • India — 3rd largest startup ecosystem globally by number (110,000+ recognised startups)
  • DAP 2020: replaced DPP; DAP 2026 (draft) — shifts from "Made in India" to "Owned by India"
  • Italy's Leonardo and Fincantieri: key companies in helicopters, naval platforms relevant to India-Italy defence roadmap
On this page
  1. What Happened
  2. Static Topic Bridges
  3. India's Defence Industrial Policy: From Import to Co-development
  4. Critical Minerals: National Policy and International Supply Chain Strategy
  5. Maritime Cooperation and India's Blue Economy
  6. India's Innovation Ecosystem and Tech Diplomacy
  7. Key Facts & Data
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