This paper examines the product specialisation of Italian trade over the period 2000-2006 to identify the roots of Italy’s sluggish trade performance with respect to India. In particular, the analysis focuses on the role of product specialisation in relation to world trade growth and competition from emerging countries. We used trade indicators to describe and asses the state of trade flows and trade patterns of a particular country like India and also to monitor these flows over time and across countries. Till the early 1990s, India was a closed economy: average tariffs exceeded 200 percent, quantitative restrictions on imports were extensive, and there were stringent restrictions on foreign investment. The country began to cautiously reform in the 1990s, liberalizing only under conditions of extreme necessity. Since that time, trade reforms have produced remarkable results. The economy is now among the fastest growing in the world. This leads some to see India as a ‘rapid globalizer’ while others still see it as a ‘highly protectionist’ economy. India however retains its right to protect when need arises. Agricultural tariffs average between 30-40 percent, anti-dumping measures have been liberally used to protect trade. India is now aggressively pushing for a more liberal global trade regime, especially in services.