Italy's exports to India for 1998-'99 touched $1,094 million and it's imports from India was $1,065 million. Italy ranks fourth among the European nations in terms of total business with India. Around 60 per cent of the total imports into India from Italy comprises machinery goods and around 40 per cent of India's exports to Italy comprises finished and semi-finished textile goods.

`` We believe India has not been touched by the financial crisis as other Asian countries. Many of us were reluctant to enter India anticipating a crisis. But it never happened. Hence, India emerged a favourable destination for investments,'' Zani said. Italy, he added, considers India as a big market with many opportunities similar to what existed in China seven years ago.

Zani considers food processing as a major area where Italian companies could commit big investments. ``India can bank on the Italian technology. India's agro produce is being wasted for want of proper technology. We can offer some of the best technologies available in the world,'' he said. However, software to fashions could be considered as investment areas by Italian companies.

The Trade Commissioner claimed inexpensive and quality labour available in India attracts foreign investments.

The Italian government on it's part would entice small and medium Indian enterprises, looking for import of Italian machinery and technology, with soft loans. The modalities of the scheme are being worked out for implementation before the end of the year, Zani said.

On the textile machinery front, Italy expects India to import at least $78 million worth machines next year against the $52 million imports made in 1998. Textile machinery imports from Italy have been falling gradually from a high of $ 93 million in 1995 due to the recession in the industry.

``We expect the bulk of increased demand to come from the textile finishing segment. We should touch the 1997 levels ($ 79 million),'' a senior official of ACIMIT (the Italian association of textile machinery manufacturers association) claimed.

Apparently, Italy would be banking on the currently operational multi-crore Technology Upgradation Fund scheme for the Indian textile industry to improve it's machinery business here. The machinery manufacturers are looking at the finishing segment since the Indian government has identified this as focus area for future investments to make India compete effectively in the global market.

Only 12 per cent of the total textile machinery import from Italy during 1998 fell in the finishing category compared to 48 per cent imports made for the spinning segment. Earlier, inaugurating the seminar, Southern India Spinning Mills' Association (Sima) vice-chairman Vijay Venkataswamy said India needs world class processing and finishing machineries for manufacture of value added products. ``We have the biggest loomage and spindleage in the world. However, the share of processed fabrics in the total export basket of fabrics is only 40 per cent compared to the world average of 75 per cent.The average value realisation is also lower than the global average,'' he said emphasising on the need to modernise the textile industry.