An 8th century 'Avalokiteshwara Padamapani' Buddhist stone idol stolen 20 years ago from India has been recovered in Italy, the Indian consulate in Milan said on Friday.

"The idol survived for almost 1200 years in the Devisthan Kundulpur temple till it was stolen and smuggled out of India in early 2000," it said.

"The stone idol dates back to 8th-12th century. Avalokiteshwara is depicted standing, holding the stem of a blossoming lotus in his left hand."  In Buddhism, Avalokiteshwara is the bodhisattva who embodies the compassion of all Buddhas.

"It is learnt that the sculpture had briefly surfaced in the art market in France, before being located in Milan, Italy. India Pride Project, Singapore and Art Recovery International, London swiftly assisted in identification and return of the stolen idol," the consulate said in a statement.