15: “Italy meets South India”: how Alfonso Tagliaferri, the Consul General of Italy in Bangalore, is fostering cooperation with Italy in South India
Consul General Alfonso Tagliaferri shares exclusive insights on business opportunities and challenges for Italian companies, and the Consulate's role in strengthening cultural ties in South India.
📝 Words: 2,053 | 🕰️ Estimated Reading time: about 10 mins
Hi Kula readers 👋,
In this week’s newsletter, we had the pleasure of interviewing Alfonso Tagliaferri, the Consul General at the newly established Consulate General of Italy in Bangalore or Bengaluru, as it has been renamed in 2014. We (Francesco, Giuseppe, and Riccardo) had the honor of meeting him during our stay in India on the occasion of a special evening dedicated by the Consulate to Ennio Morricone, one of the world’s most famous composers.
Our discussion with Alfonso covered his inspiring journey, the strategic role of the Bangalore Consulate, and the opportunities and challenges for Italian businesses in the South of India. We also explored the cultural integration efforts that are strengthening the ties between Italy and India.
Join us for unique insights from this engaging conversation!
Key Takeaways
🇮🇹🤝🇮🇳 Italy-India flourishing partnership: in 2023, bilateral trade between India and Italy reached €14.34 billion, reflecting strong economic ties. With around 200,000 Indian residents, Italy boasts the largest Indian community in the EU, and it is becoming increasingly welcoming, further strengthening this vibrant economic and cultural partnership.
🚀 Tapping into South India's Potential: the biggest opportunities in South India lie in the digital sector and in the infrastructure development. Bangalore's dynamic tech scene is ideal for Italian firms to set up cutting-edge R&D centers, driving innovation and capturing growth.
💎 Hidden gems: South India's emerging investment hubs: beyond Bangalore, South India boasts promising opportunities in cities like Chennai and Hyderabad. Chennai excels in heavy industries and fintech, while Hyderabad leads in IT, biotechnology, and aerospace. These cities, as many other Tier II and III locations, offer attractive incentives and lower costs for businesses.
Alfonso Tagliaferri’s Journey
Alfonso Tagliaferri began his career as a journalist, working between Rome and Santiago, Chile. Returning to Italy, he decided to pursue a diplomatic career, passing the public service exam in 2009.
His first diplomatic assignments took him to Manila, Philippines, as Deputy Head of Mission, and later to Cape Town, South Africa, where he served for the first time as Consul.
His first experience in India came in early 2020 when he took on a temporary mission to Kolkata as acting Consul General. During these challenging five months, marked by the Covid-19 outbreak, Alfonso forged a deep bond with India. Keen to remain in the country, he seized the opportunity to open a new Consulate in Bangalore, a vision of Ambassador Vincenzo de Luca. Alfonso led the creation of the Consulate from scratch, managing the complexities of post-pandemic restrictions
The Consulate General of Italy in Bangalore
The Consulate General of Italy in Bangalore, with extended jurisdiction over Karnataka, Tamil Nadu, Telangana, Andhra Pradesh, and the Union Territory of Puducherry, is now completely operational and marks a significant milestone in Italy-India relations.
The Consulate is designed as an integrated hub representing the Italian system, facilitating the cultural, commercial, and scientific promotion of the country. At its heart lies "Piazza Italia," a central area providing access to consular services, commercial offices as ITA (Italian Trade Agency) and the Chamber of Commerce, and Uni-Italia office for academic promotion.
Innovative and original, the Consulate got the affectionate nickname, in the corridors of the Italian Ministry of Foreign Affairs, of “The Consulate of the Future." Beyond offering standard services, it is strategically designed to actively promote Italy.
"We shifted our focus from merely serving the local Italian community to creating a center that promotes Italy in South India." - Alfonso Tagliaferri
Tagliaferri envisioned a welcoming and modern space, breaking away from the traditional image of public offices. This innovative approach was recognized by the Economic Times, awarding it the title of the Best Commercial Interior Design in the South of India.
The context: Italy-India relations
Italy and India enjoy strong economic ties, focusing on key sectors outlined in the 2020-2024 Action Plan: Green Economy, Agri-food industry, infrastructure, digital, and manufacturing/lifestyle. Trade between the two countries is expected to grow by 10-15% annually over the next 4-5 years, according to Claudio Maffioletti, CEO of the Indo-Italian Chamber of Commerce and Industry.
In 2023, bilateral trade reached €14.34 billion, with Italy being India's 4th largest trading partner in the EU. Machinery and equipment dominate Italian exports to India, followed by chemicals, basic metals, and electronic devices, while Indian exports to Italy include metallurgy, chemical, and textile goods.
Italy ranks as the 18th largest foreign investor in India. Over 780 Italian companies operate there, with 40-45% having manufacturing plants and investments have surpassed $18 billion since 2014. On the other hand, around 100-120 Indian companies are present in Italy, primarily in heavy industries, but they are now also expanding into pharma, healthcare, and automotive (Source: ISTAT - https://www.coeweb.istat.it/).
An interesting aspect of Italy-India relations is the big Indian community in Italy. With around 200,000 residents, Italy, alongside the Netherlands, hosts the largest Indian community in the EU. Unlike the Netherlands, Italy is becoming increasingly open to Indians, as highlighted by a recent mobility agreement between the two countries.
Unlocking opportunities for Italian enterprises in South India
The decision to open the Consulate in Bangalore was also driven by the need to support the growing number of Italian businesses in South India. Currently, there are approximately 170-180 Italian companies in the region, operating mainly in advanced mechanics, chemicals, pharmaceuticals, and automotive. This diverse group includes industry giants like Enel, Saipem, Danieli and Lavazza, mid-sized enterprises such as Casappa, Biesse, Bonfiglioli and Leghorn Group, as well as many small businesses.
During the interview, we explored the opportunities that India has to offer to Italian companies and how the Consulate and its commercial partners can facilitate the entry of new businesses into the Indian market.
The biggest opportunities lie in the digital sector and its diverse applications, ranging from renewable energy technologies to agri-tech, as well as more traditional fields like food processing. The Strategic Partnership signed in 2023 between Italy and India has also opened new possibilities in critical areas such as defence, cybersecurity, and space. Moreover, India’s infrastructure development presents attractive opportunities for foreign investors, especially within the industrial corridors promoted by the "Make in India" program. They offer fertile ground for strategic investments, where Italian companies have the potential to expand their presence.
Bangalore is the ultimate destination for investments (in the last few years it has consistently bagged 30-35% of all annual FDI in India), having transformed into a global tech powerhouse. The city offers a unique environment with countless incubators, start-up accelerators, and a vast pool of highly skilled software engineers, all at much lower costs compared to Silicon Valley.
Consul General Tagliaferri also highlights the opportunity to establish R&D centers dedicated to pure digital innovation. By leveraging Bangalore's thriving ecosystem, Italian companies can position themselves at the cutting edge of technological advancement in India.
“Italian companies have yet to establish R&D centers focused exclusively on digital innovation. While there are R&D facilities for specific industries, such as for chemicals and aeronautics, there’s a significant gap in pure digital research.” - Alfonso Tagliaferri
While Bangalore is the hotspot, the opportunities in South India extend far beyond. Other cities and regions are emerging as specialized hubs in specific sectors, offering attractive incentives and even lower costs compared to the Indian Silicon Valley.
“The South of India is not just Bangalore; there is a strong public effort to attract foreign investments to Tier II and even Tier III cities”. - Alfonso Tagliaferri
📍 Karnataka:
🏦 Mangalore: the government is promoting it as a fintech center.
💻 Mysore: offers strong incentives for semiconductor production, aiming to become a semiconductor hub.
📍 Tamil Nadu:
🚗 Chennai: known for automotive and heavy industries, as well as numerous tanneries. Recently, it has also been making strides in fintech and is working on developing a “defense corridor” to bolster the defense industry.
📍 Telangana:
💻 Hyderabad: often referred to as "Cyberabad" and considered Bangalore's twin, is a major hub for IT, biotechnology, pharmaceuticals, and aerospace.
📍 Andhra Pradesh:
🌐 Hosts several Special Economic Zones that provide significant incentives for businesses. One example is Sri City, where some Italian companies, such as Danieli, have already established their presence.
Consul General Alfonso Tagliaferri highlighted both the opportunities and challenges for Italian companies considering expansion into the Indian market.
Why Italian companies should choose India
📈 Unmatched market: India offers a vast and rapidly growing market, boasting the highest growth rate among G20 countries.
💰 Cost-effective labor: competitive labor costs make it an attractive choice for companies looking to cut production expenses.
🧑💻 Skilled workforce: the country, and particularly the South, has a large pool of talented engineers and IT professionals. This is less true for mechanical and technical skills.
🗣️ Ease of communication: the widespread use of English simplifies interactions and business operations.
🎁 Attractive government incentives: Indian states compete to attract foreign investments by offering significant incentives like tax holidays and land purchase benefits.
Investments pitfalls in India: what Italian companies should know
📁 Bureaucracy: despite improvements, India’s bureaucratic processes can still be a hurdle. But it’s rather long and complicated, than chaotic. Things get done in the end.
📖 Diverse regional regulations: state-specific taxes and regulations demand attention to manage.
🔋 Utility shortages: power and water shortages can disrupt business operations.
🔧 Limited specialized labor: while there are many engineers, finding highly specialized labor in fields like precision mechanics can be challenging.
🌏 Cultural differences: adapting to the Indian business culture, including the communication style, can be complex and may lead to misunderstandings.
The Wall Street Journal: Bureaucracy in Asia
Expert advice for Italian companies
🕰️ Long-term vision: it is essential to understand that the initial investment might be significant, and returns may not be immediate. Companies should consider a timeline of 5, 10, or even 15 years, as investing in India makes definitely sense but requires patience and preparation.
🎯 Control strategy: emphasizing process control over just setting goals is essential, as practices in India can differ from Italian standards. “Once trust is established, operations run smoothly, and local management excels with minimal oversight. However, regular process checks are necessary to maintain quality standards. Businesses need to focus on management by control rather than management by objectives, as local practices can vary." - Alfonso Tagliaferri
🤝 Partnering for success: companies should meticulously plan their entry into the Indian market. Institutional partners like the Consulate, ITA (Italian Trade Agency), and the Chamber of Commerce can provide market access advice and insights into local culture, or suggest local partners for legal support. Additionally, working with experienced consultants can offer practical and strategic guidance.
The Italian ecosystem in India
Cultural bridges: enhancing Italy-India relations
"Cultural integration is key to facilitating economic integration between Italy and India". With this vision in mind, the Consul has dedicated significant efforts to promoting cultural exchanges and events.
Italy and India share a deep mutual interest. India holds a profound affection for Italy, often seen as a land of ideal tourism, food, and music. In turn, Italy has long been fascinated by India, with its rich tradition of Indology and oriental studies. Italians appreciate Indian spirituality, Ayurveda, yoga, and literature.
The most significant cultural and commercial initiatives organized by the Consulate, which have bolstered Italy's presence in the region, include:
🎨 Design: “Created in Italy” exhibition showcased the excellence of Italian industrial design, blending cultural, commercial, and scientific promotion. The “Design Day” recreated the atmosphere of “Salone del Mobile di Milano”, highly appreciated in India.
🍝 Cuisine: in the “Week of Italian Cuisine”, all restaurants at the Bangalore International Airport featured a special menu crafted by the Michelin-starred chef Adriano Baldassarre.
🎬 Cinema: “Italian Screens” brought the best of Italian cinema to the local audience.
🎶 Music: an Indo-Italian collaboration saw composer Riccardo Nova create contemporary music for the Mahabharata, one of India's greatest epic poems. This project brought together musicians and dancers from Italy, India, and Germany. Also, the Consulate organized a memorable concert featured world-renowned musicians Paolo Fresu and Trilok Gurtu, one of India's best percussionists
Chef Adriano Baldassarre during the “Week of Italian Cuisine” 
Paolo Fresu and Trilok Gurtu Join the conversation!
We hope you find this article insightful and that it sheds light on the dynamic opportunities and challenges facing Italian companies in India.
How do you envision the future of Italy-India relations evolving? Which sectors do you believe hold the most promise for bilateral collaboration?
Share your thoughts and join the conversation!
