Carraro Group, a manufacturer of transmission systems, has announced plans to invest Euro 350 million in India over the next five to seven years. The company, which has already invested approximately Euro 200 million and employs 1,600 people in the country, aims to nearly double its current investment base.
The investment is dedicated to developing solutions and technologies for the off-highway sector, including agriculture and construction equipment. This includes enhancing farm efficiency and productivity through their 4WD drivetrain systems.
A primary focus of the investment will be the expansion of their manufacturing facility in Pune. This expansion is crucial for increasing production capacity and strengthening their supply chain within India. Additionally, Carraro plans to establish a new plant in the same Pune area to significantly increase production capacity. The group is also strengthening its research and development capabilities in India, demonstrating a commitment to innovation and local market adaptation.
“Investing in India has seen large growth for our business. Our business in India has a big space to grow. The Indian government is very helpful.” said Francesco Sequi, CEO of Carraro India.
UFI Filters, a company focused on filtration and thermal management technologies, has also committed to doubling its investment in India to meet growing demand and support local manufacturing. Giorgio Girondi of UFI Filters expressed confidence in the company’s Indian operations and outlined growth targets for the region.
The overall goal is to expand their business in India, boosting revenue and production. UFI Filters currently has revenues in India around EUR 50 million and investments around EUR 25-30 million. The investment will directly support and enhance local manufacturing capabilities for their filtration and thermal management technologies.
The announcements came on June 4–5, 2025, as Commerce Minister Piyush Goyal led India’s delegation to the 22nd session of the India–Italy Joint Commission for Economic Cooperation (JCEC) and the India–Italy Growth Forum in Brescia.
Goyal also raised broader economic and supply chain concerns, urging diversification of critical mineral sources. He called for international cooperation to reduce reliance on a few countries and strengthen the resilience of global supply networks. Additionally, he proposed the idea of an “Italian enclave” in India—complete with facilities such as schools and hospitals—to promote Italian industrial investment.
The JCEC, co‑chaired by Goyal and Italy’s Deputy Prime Minister Antonio Tajani, reviewed progress under the India–Italy Joint Strategic Action Plan (2025–2029), focusing on sectors like Industry 4.0, agritech, energy transition, sustainable mobility, and the India–Middle East–Europe Economic Corridor.
Carraro Group specializes in manufacturing transmission systems for off-highway vehicles and tractors. UFI Filters provides advanced filtration solutions and thermal management systems across various industries including automotive, aerospace, marine, specialized industrial, and customized hydraulic applications.
