After the Italians reneged on their commitment to send back its two marines, who were allowed by the Supreme Court on February 22 to go to Italy for four weeks for voting in elections there, the Supreme Court has restrained Italian ambassador Daniele Mancini from leaving India without its permission.
The court had allowed the marines to go home after an undertaking, which is in the nature of a sovereign guarantee from the envoy.
The Italian government's position is that India does not have jurisdiction in the case because the incident supposedly took place in international waters and the marines were on official duty.
The Indian government has decided to review the entire gamut of relations with Italy - diplomatic, trade and defence - apart from reaching out to the European Union (EU), which has been briefed on India's position in the matter.
The EU wants a mutually acceptable solution to the dispute between India and Italy over Rome's decision not to return the marines.
"The EU is taking note of the disputes between India and Italy and continues to hope that a common solution can be reached through negotiation," Catherine Ashton, a spokesperson for EU foreign affairs, was quoted by the Italian media as saying.
Italians constitute 1.5% of foreign tourists in India.