Date:03/06/2006 URL: http://www.thehindubusinessline.com/2006/06/03/stories/2006060301421900.htm

Back More FDI from Italy likely in infrastructure, engg sectors

Our Bureau

Chennai , June 2

The infrastructure and engineering sectors in Tamil Nadu could see greater foreign direct investment from Italy over the next three years.

With focus on upgrading non-metro airports, Italy is also considering developing roadways in Tamil Nadu, Mr Antonio Armellini, Ambassador of Italy in India, said today.

Speaking at a meeting organised here by the Federation of Indian Chambers of Commerce and Industry (FICCI) today, Mr Armellini said that agro processing, IT, bio-technology and auto components were other areas that Italy was interested in.

He also indicated the possibilities of new joint ventures in the fashion and design technology space.

Bilateral trade

The Indo-Italian bilateral trade during 2004-05 was $3.5 billion (about Rs 15,776 crore) and this is expected to double over the next three years, said Mr Armellini. Italian companies that have invested in India include Fiat Auto, Heinz and Perfetti. Major joint ventures include Hindustan Machine Tools-Olivetti for cylindrical grinders, DCM -Benetton for fabrics and clothing.

Focus areas

Mr M. Velmurugan, Director Industrial Guidance & Export Promotion Bureau, Tamil Nadu said the State was looking at cooperation from Italy in areas of SME development, food processing and fashion technology along with increased focus on existing tie ups in the leather and textile industry.

Also, FICCI and the National Institute of Design, New Delhi, have an agreement for cooperation in design and fashion management with Bocconi University and Altagamma of Italy.