Last year, the Indian economy — the world’s fourth largest — grew by 7.8%. According to Gabriele Pinosa, Sole Director of Go-Spa Consulting, growth is expected to continue over the next two years at an average annual rate of 7%. India therefore offers significant business opportunities, but investment strategies must be tailored to a diverse country comprising 28 states, where a total of 24 languages are spoken, two of them nationwide.
To reduce business risk, investment projects need to be developed in partnership with local businesses, speakers stressed during the meeting. The event was moderated by Davide Gallarate, Head of Events at FederUnacoma, the agricultural machinery manufacturers’ association within Confindustria and the direct organiser of the Bologna exhibition.
Against this backdrop, the Free Trade Agreement (FTA) between the European Union and India, expected to be signed in December, is strategically important because it would substantially increase trade between the two parties. Lower tariff barriers are expected to create a $24 trillion trading partnership, particularly benefiting the machinery sector. As Gabriele Pinosa explained, machinery accounts for more than $16 billion in exports and is Europe’s leading export category to India.
The agricultural machinery sector offers considerable scope for cooperation. India has the world’s second-largest cultivated area and ranks among the leading producers of millet, pulses, rice, wheat, fruit and vegetables. Between 2020 and 2025, the value of its agricultural exports reportedly doubled, from $34.5 billion to $51 billion.
India’s agricultural economy has strengthened over time, but demand for machinery remains substantial, explained Shaurav Pandey, Additional Director at FICCI, the Federation of Indian Chambers of Commerce and Industry. Government incentive programmes introduced in recent years have helped narrow this gap in the tractor segment and are now shifting towards other types of machinery, including equipment for sowing, transplanting and harvesting. Investment in the most innovative technologies is receiving particular support: drones, sensors, AI agents and digital systems.
The Indian agricultural machinery market therefore offers Italian manufacturers significant business opportunities, but also presents risks. Climate change, competitors offering highly competitive prices, inadequate infrastructure and rising production costs can discourage Italian companies from pursuing investment projects in India.
In this context, SACE and SIMEST play a key role in promoting Italian products and expertise worldwide. Sara Carattini, Industrial Advisor at SACE, outlined the instruments offered by the insurance and financial group under Italy’s Ministry of Economy and Finance to support Italian companies’ exports and innovation. These include financial guarantees, factoring, risk management and protection.
Cristiana di Tommaso, Senior Business Promotion Professional at SIMEST, a CDP Group company, also addressed the subject, focusing particularly on SIMEST’s initiatives to support the international expansion of Italian businesses.
The meeting concluded with a presentation of the tenth edition of EIMA Agrimach, the exhibition of machinery and technologies for India’s agricultural sector, to be held from 2 to 4 December 2027 at IARI Pusa in New Delhi. Organised by FICCI and FederUnacoma, the exhibition is a key event not only for India’s agricultural machinery industry but, as Davide Gallarate explained, for the agricultural machinery sector throughout Southeast Asia.