The provincial government is also aiming to promote outsourcing of components from India by Italian firms like Fiat for their European operations.
"We have a system of special incentives for companies setting up business in our province and we are keen to extend it to Indian auto component manufacturers," Regione Piemonte Minister for Federalism, Decentralisation and Local Authorities Sergio Deorsola said.
The incentives include streamlining investment proposals, sharing of technology with Italian firms and special allotments.
"Over 660 companies (from across the world) have set up shops in Piemonte and we now expect Indian firms to do the same. I have had discussions with Indian industry leaders during my ongoing visit here to appraise them about it," Deorsola said.
Piemonte, with a population of 4.4 million and located in North-West Italy, mainly exports agricultural and transportation components and machineries to India.
The global headquarter of Fiat is located in Turin, the regional capital Piemonte.
Deorsola said the Piemonte regional government also wants Italian firms like Fiat to tap the Indian components market.
"Besides sharing our strength in technology and design with India, our companies can also use India for outsourcing of components for there European operations. India could be the main centre for our firms' business in South and South-East Asia regions," he said.
Interestingly, Fiat, which is based in Piemonte, had last year announced plans to buy auto parts worth Rs 1,700 crore (250 million euros) from India country by 2010 for its European operations.