A European in China - Exclusive Interview with the Ambassador of Italy to India, H.E. Vicenzo de Luca
This article was originally published in italian in panorama on 7th may 2024.
Please note that this is a courtesy translation of the italian language article originally published in the panorama magazine issue at: https://www.panorama.it/news/dal-mondo/vicenzo-de-luca-ambasciatore-india-italia
In this article, we seek to broaden the scope of our column by featuring a prominent figure from Italian and European diplomatic institutions stationed abroad. We had the privilege of interviewing His Excellency Ambassador Vincenzo de Luca, who was appointed Ambassador of Italy to India in 2019 and later to Nepal in 2021. Ambassador De Luca also brings with him insights from his tenure as Consul General of Italy in Shanghai, China. His contributions have been pivotal to the advancement of Italy's interests and the success of our companies in the countries where he has served. During our discussion, we assessed the bilateral relations between Italy and India.
Q: Could you briefly describe your career path and the road you travelled to become ambassador to India?
I started my diplomatic career in 1989, marking the beginning of a lifelong journey that has afforded me the opportunity to engage with extraordinary individuals across various fields, enriching me both professionally and personally. Throughout my career I have lived in Sudan, Tunisia, France, and China. Alongside my diplomatic roles, I have garnered experience in the private sector with companies such as ENI and ENEL. My responsibilities have spanned from contributing to Expo Milano to promoting Italy's economic, scientific, and cultural interests at the Ministry of Foreign Affairs (Farnesina). This adventure culminates with my current postings in India and Nepal.
Q: What is your assessment of the recent evolution of the relationship between India and Italy?
After the definitive resolution of the Naval Fusiliers affair, bilateral relations have significantly improved. Just to give an example, in 2021, during the second devastating wave of COVID, Italy played a pivotal role in providing medical assistance. Furthermore, in March of the same year, we initiated a strategic partnership during Prime Minister Meloni's highly successful visit to India. Now, our collaboration spans important areas such as defense and space, advanced manufacturing, and energy transition, all strategic sectors where Italian companies can leverage their traditional willingness to engage in partnerships and share technological solutions. These are areas in which the two countries can also collaborate within international forums, where India is increasingly asserting a defined profile. Furthermore, we have also pursued collaboration protocols in the cultural and mobility sectors to facilitate the exchange of students, workers, and quality tourism.
Q: Are there any specific insights about the country that you would like to share with our readers, which you believe are important for them to know?
India and Italy are two cultural superpowers. Like our country, India is rich in history and culture. It's an enormous nation where diverse traditions coexist, encompassing religion, language, culture, and cuisine. With an average age of around twenty-seven years, India boasts a young and dynamic population of 1.4 billion people who look positively toward the future. And, above all, there is a strong desire for Italy in India.
Q: In which areas do you believe there is potential for improvement in the Indian market for Italian companies?
Italian exports reached their historical peak in 2023 at 5.2 billion euros (+7.6% compared to the previous year), significantly surpassing the nearly four billion pre-COVID. Machinery accounts for 40% of our exports to India. Many of the Italian companies operating here are also engaged in machinery production. Italian enterprises are well aware of the opportunities offered by the country, including those represented by so-called second and third-tier cities. This is evidenced by significant investments made by longstanding players as well as new entrants, with the Chamber of Commerce estimating Italian presence growing from 650 companies in 2022 to approximately 800 today. Moreover, India has a keen interest in increasing the share of its GDP in the manufacturing sector compared to agriculture and services, particularly to facilitate employment opportunities for the millions of young Indians entering the job market annually. From this perspective, Italian companies can play a leading role in India's economic growth. Many firms are expanding to cater to the burgeoning Indian market while also diversifying and integrating their supply chains in this complex period. Key sectors for the near future will undoubtedly include advanced manufacturing, construction (and the furniture industry), infrastructure, and energy transition.
Q: Are there specific initiatives where greater collaboration could bring mutual benefits, culture for example?
We are advancing a growing collaboration in the field of safeguarding and enhancing cultural heritage, as well as fostering the exchange of researchers and students to strengthen our relationships, particularly within the academic and scientific communities. Our aim is to further stimulate investments in both directions, encompassing research and development as well as broader innovative sectors. Notably, we have established a new Consulate General in Bangalore, India's renowned Silicon Valley, which serves as a focal point for much of the country's innovation.
Q: What advice would you give to managers or investors considering investing in Asia, particularly India and China?
India and China differ in several aspects. Drawing from my experience in these two countries, there are two pieces of advice that apply to both: 1) look towards a medium to long-term horizon and refrain from adopting a short-term approach; 2) utilize the institutional support provided by our country, including Embassies, Consulates, ICE Offices, and, from a financial standpoint, SACE and Simest.
Edited by: Lawyer Carlo Diego D'Andrea, Vice President of the European Union Chamber of Commerce in China
