India Netherlands Trade

India Netherlands Trade Agreement

Last updated: Oct, 2023

Introduction

India and the Netherlands established diplomatic relations in 1947. The year 2022 marks 75 years of the establishment of diplomatic relations. Today, the two countries are maintaining strong political, economic & commercial relations. High-level mutual exchanges have provided an impetus to the multifaceted partnership between the two countries.

India-Netherland Trade

The Netherlands is the 4th largest trading partner with India in Europe (From April 2000-March 2023).
It is also the 4th largest investor in India.
Bilateral trade reached an all-time high of US$ 27.58 billion during 2022-23.
Bilateral trade between India and Netherlands stood at US$ 4.20 billion from April-May 2023-24.

Major exported items from India to the Netherlands with amount & quantity

India exported 4,610 commodities to the Netherlands in FY22.
India’s exports to the Netherlands stood at US$ 21.62 billion during 2022-23.
Major exported items from India to the Netherlands include petroleum products (US$ 12.52 billion), telecom instruments (US$ 1.25 billion), aluminium & products of aluminium (US$ 0.85 billion), organic chemicals (US$ 0.58 billion), residual chemical (US$ 0.45 billion), drug formulations, biologicals (US$ 0.44 billion), etc. during 2022-23.
India’s exports to the Netherlands stood at US$ 3.29 billion from April-May 2023-24.
Major exported items from India to the Netherlands include petroleum products (US$ 1.80 billion), telecom instruments (US$ 0.23 billion), aluminium & products of aluminium (US$ 0.09 billion), electronic instruments (US$ 0.08 billion), iron and steel (US$ 0.08 billion), etc. during April-May 2023-24.

Major imported items by India from the Netherlands with amount & quantity

India imported 3,906 commodities from the Netherlands in FY22.
India’s imports from the Netherlands stood at US$ 5.96 billion during 2022-23.
Major items imported by India from the Netherlands include petroleum; crude (US$ 0.58 billion), vegetable oils (US$ 0.44 billion), iron and steel (US$ 0.31 billion), plastic raw materials (US$ 0.29 billion), organic chemicals (US$ 0.29 billion), industrial machinery for dairy (US$ 0.27 billion), medical and scientific instruments (US$ 0.27 billion), electric machinery (US$ 0.25 billion), etc. during 2022-23.
India’s imports to the Netherlands stood at US$ 0.93 billion from April-May 2023-24.
Major imported items from India to the Netherlands include industrial machinery for dairy (US$ 74 million), electronics component (US$ 73 million), copper & products made of copper (US$ 60 million), iron and steel (US$ 47 million), electronic instruments (US$ 44 million), plastic raw materials (US$ 42 million), etc. during April-May 2023-24.

Economic Relations and Investments

The cumulative FDI inflows from the Netherlands to India from April 2000-March 2023 amounted to US$ 43.75 billion.
According to data from commerce ministry, The Netherlands has emerged as India's third largest exports destination after the US and UAE during 2022-23.
There are over 300 Dutch companies present in India, including Philips, Signify, Akzo Nobel, DSM, Heineken, KLM, and others. Indian companies are also investing in the Netherlands in a big way and the Netherlands is now the 4th largest destination for Overseas Direct Investment (ODI) by Indian companies. More than 300 Indian companies have a presence in the Netherlands.
Netherlands ranked as the 4th largest investor in India with an FDI inflow of US$ 43.75 billion from April 2000-March 2023.
Key areas of cooperation between India and the Netherlands are agriculture, health, port and shipping, science and technology, higher education, and urban development. Both countries are working on strategic partnerships in the water sector as the Netherlands is a pioneer in water management besides science and R&D.
Major Indian acquisitions of Dutch enterprises include OYO Hotels & Homes acquiring Amsterdam-based vacation rental firm @Leisure Group in 2019 for US$ 415 million, Tata Steel’s acquisition of Anglo-Dutch company Corus for US$ 7.5 billion (£ 6.2 billion) in 2007, Apollo Tyres’ acquiring Dutch tiremaker Vredestein Banden in 2009 for an undisclosed amount, and the acquisition of Dutch company Bilthoven Biologicals by the Serum Institute of India in 2018 for US$ 85 million (€ 80 million).

Recent Trends & developments

India has committed to the Paris Agreement with ambitious goals of cutting emissions of greenhouse gases by 33-35% and having 450 GW of non-fossil power generation capacity by 2030. India and the Netherlands work together to meet these goals.
A Joint Statement to formally establish a bilateral Fast-Track Mechanism (FTM) between India and the Netherlands to facilitate investments by Dutch companies in India, was signed by the Department for Promotion of Industry and Internal Trade (DPIIT) and the Embassy of Netherlands on September 27, 2022, in New Delhi.
According to a tentative deal agreed between the two firms on October 25, 2022, Tata Steel’s Dutch division intends to supply Ford plants in Europe with “green” steel after 2030. In 2030, Tata intends to begin manufacturing green steel at its Dutch facility in Ijmuiden, or steel made without the use of fossil fuels.
LyondellBasell and Shakti Plastic Industries, India’s largest plastic scrap recycler and waste collection company, have signed a Memorandum of Understanding (MoU) to form a joint venture to build and operate a fully automated, mechanical recycling plant in India. The plant is intended to process rigid packaging post-consumer waste and produce 50,000 tonnes of recycled polyethylene (PE) and polypropylene (PP) per year, equivalent to the single-use plastic waste produced by 12.5 million citizens.
On December 1, 2022, Dutch and Indian representatives from both the government and the business sector gathered to celebrate India’s decision to invite the Netherlands as a guest country in the upcoming G20. The gathering was an important occasion to promote business and investment relations between the two countries.
India and Netherlands held the 11th Foreign Office Consultations (FOC) on December 19, 2022, where both sides discussed the way forward in crucial sectors such as Water, Agriculture and Health (WAH agenda), Science and Technology, climate innovation, and renewable technologies. The re-launch of Free Trade Agreement negotiations and the Connectivity partnership between India and the EU were acknowledged as key drivers by both sides.

Conclusion

The relations between India and the Netherlands date back to the early 17th century. This long-cherished historic bond is based on the shared values, rule of law, pluralism, and people-to-people connection between the two countries. The continuous cooperation in the different areas has undeniably brought the Netherlands and India closer. They are maintaining cooperation in trade and economy, energy transition, smart cities and urban mobility, science & technology cooperation, water management and agriculture sector, public health & health care and culture and also becoming stronger to solve the global challenges together.

Contacts

Embassy of India, Netherlands
Address: Buitenrustweg 2 2517 KD The Hague The Netherlands
Telephone: 070-3469771
Email: consular.thehague@mea.gov.in

Officials
Mrs. Reenat Sandhu – Ambassador
Telephone: +31-70-365-9125
Email: admin.thehague@mea.gov.in

Mr. Gince Kuruvilla Mattam - Deputy Chief of Mission
Telephone: +31-70-346-9771
Email: dcm.thehague@mea.gov.in
Embassy of Netherlands, India
Address: 6/50 F, Shantipath, Chanakyapuri, New Delhi – 110021
Telephone: +911124197600
Email: nde@minbuza.nl

Officials
Mr. Marten van-den Berg (Ambassador)