Italy has recalled its ambassador to New Delhi for consultations amid tension with India over the case of two Italian marines detained under charges of killing two local fishermen.

"In light of the developments in the situation in Kerala and the charges against the two Italian servicemen, Massimiliano Latorre and Salvatore Girone, the Italian ambassador to New Delhi, Giacomo Sanfelice, has been recalled to Rome for consultations with the government," a statement from the Italian foreign ministry said.

The two marines were arrested in February after allegedly shooting dead two local fishermen off the southern Indian state of Kerala.

According to Rome, Italy should have jurisdiction for the case, as the two marines were working on an anti-piracy mission aboard a vessel in international waters.

But according to Indian authorities, the two failed to show sufficient restraint by opening fire after mistaking the fishermen for pirates.

The deaths have sparked a diplomatic dispute between the two countries, with several Italian officials making visits to Indian government authorities in the past months.