The Italian government has launched a new initiative, “Misura India,” aimed at boosting Italian exports to India through subsidized export finance and other trade finance instruments. Administered by the Italian export finance agency SIMEST, the program is part of a broader strategy to strengthen trade with the Global South, particularly as demand in traditional Western markets declines and new tariffs pose challenges.
Under the plan, £173 million of the funds will provide highly subsidized export financing with interest rates capped at 0.6%, primarily targeting firms entering the Indian market or starting joint ventures in the country. The remaining £259 million will expand SIMEST’s existing trade finance tools, including guarantees, trade credit insurance, and letters of credit, helping companies with an existing presence in India to grow further and secure more working capital.
The initiative was finalized on 31 July and will take effect on 15 September, allowing firms to apply for loans online. Smaller parallel funds of £7.1 million and £1.3 million have also been allocated to support exporters targeting Africa and Latin America.
“Misura India” is part of a wider effort to enhance Italy-India trade relations and expand market access for Italian goods such as high-end fashion, food, and pharmaceuticals. Italy maintains a £1.25 billion trade deficit with India but remains one of India’s largest EU trading partners, with 773 Italian firms already operating in the country.
This push coincides with India’s increasing influence in global trade, highlighted by recent US tariffs on Indian goods and the UK-India trade deal expected to boost bilateral trade by £4.8 billion. While EU countries cannot independently negotiate trade agreements or tariff exemptions, export finance programs like Misura India provide a strategic way to strengthen bilateral trade and secure a foothold in growing markets.
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