India as the New Frontier: Reframing Internationalization through Digital Ecosystems and New Entry Models for Italian SMEs

This thesis, titled "India as the New Frontier: Reframing Internationalization Through Digital Ecosystems and New Entry Models for Italian SMEs," examines the structural transformation of the Indian economy and its rise as an essential strategic partner for Western markets, specifically Italy. The research delineates India’s developmental progression from colonial-era stagnation and the bureaucratic "License Raj" to the pivotal 1991 reforms that initiated a shift toward Liberalization, Privatization, and Globalization (LPG). The study shows that India is currently an outlier in terms of global growth, with a GDP of US$ 3.55 trillion in 2023. The "China Plus One" strategy is a core driver of this change, as India emerges as a strong manufacturing alternative to China due to rising labor costs and geopolitical tensions. The research further examines how erratic U.S. trade policies and protectionism served as a pivotal impetus for the historic 2026 EU-India Free Trade Agreement, which aims to alleviate "Trade Policy Uncertainty" through institutional harmonization and the minimization of "Administrative Distance". A significant part of the work focuses on the operational reality of Small and Medium Enterprises (SMEs). The thesis posits that contemporary enterprises can bypass conventional stages of internationalization by utilizing digital enablers such as the "India Stack" and Artificial Intelligence. From a non-mercantilist perspective, the study determines that Italian SMEs can achieve enduring success by assimilating into Indian value chains, leveraging Production Linked Incentives (PLI), and embracing adaptive, "frugal" business models to maneuver within this emerging international framework.