Italy keen to bring FDI in fashion, textiles to India

New Delhi, May 17 (PTI) Terming India's decision to allow 100 per cent foreign direct investment (FDI) in single-brand retail as a "revolution", Italy today said several companies have shown interest in setting up stores in the country. Italian Trade Commissioner Erica Di Giovancarlo said businessmen of both the countries can collaborate in sectors like automobiles, fashion and textiles through joint ventures. "This decision (allowing 100 per cent FDI in single-brand) of the government is a revolution in this market. I am sure it will catch interest of lot of companies...," Giovancarlo told PTI. The decision has paved the way for global Italian chains like Armani, Gucci and Prada to have full ownership of their India operations. Italy, a world leader in fashion designing, is interested in setting up businesses here. "Italy is known for fashion. Indian designs are growing very fast. It will be interesting to see how two countries can match. We are working hard on this," she said. She said in order to bolster trade ties between the two countries, Italy is also organising a three-day 'Expo Riva Schuh Fair' here from July 5. The exhibition will offer high-end products which include bags, belts, footwears and leather accessories. "Its a good meeting point of local needs and Italian products," she said. However, the third-largest economy in Europe, will wait for the economic situation to recover in its region, before making investments here. The Italian companies, mainly the small and medium enterprises (SMEs), are facing a tough situation due to slowdown. "We have to wait as situation in Italy is very tough but the interest in this country (India) is very high," Giovancarlo added. The bilateral trade between India and Italy stood at USD 8.8 billion during India's fiscal 2010-11 ended March 31, 2011. The economic situation in Italy and Europe, in general, is improving although the situation is still difficult, Giovancarlo said. Italian companies of all sizes are looking with great interest at the opportunities offered by India, not only in terms of export, but also as a location for manufacturing facilities. However, Italian and European companies, especially SMEs who have limited liquidity during this period, have to be particularly choosy about investments. PTI