You need a schengen visa. Apply in advance. There is generally high traffic to Italy from India.
Start your process by looking at the VFS Site .
Key things needed for applying to a schengen visa(for italy) are the following
1. Passport with the appropriate validity
2. Photos as per the spec
3. Air tickets (Onward and Return)
4. Hotel bookings for the entire period(Airbnb is accepted too)
5. Overseas medical insurance
6. Income Tax returns filed for last 3 years
7. Bank account statement showing appropriate funds(check VFS for what is needed)
8. Sanctioned leave letter from the company(this is mandatory for employees, dont skip it)
9. Travel bookings internal to italy.
All the above are needed. Do not skip anything even if someone tells you so. Take 2 photocopies of each document. VFS can ask you during the session and it becomes difficult to take a copy at that time.
Getting a date can become difficult at times, hence it is better to plan early.
Don’t wait much to book the visa appointment. If family slots are not available then you could take individual slots for each one on the family.
Here are samples of Cover letter- Italy sample cover letter and leave letter – italyvisa leave letter sample. Verify with VFS or a travel agent before using it, this is what worked for me. I take no responsibility if you run into problems due to this.