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India Netherlands Trade

India Netherlands Trade Agreement

Last updated: Mar, 2024

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.
  • The Netherlands is India’s 11th largest merchandise trading partner in the world and the largest in the European Union.
  • The Netherlands is India’s largest merchandise export destination in Europe and third largest in the world.

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

  • India exported 4,679 commodities to the Netherlands in FY23.
  • 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$ 13.50 billion from April-November 2023-24.
  • Major exported items from India to the Netherlands include petroleum products (US$ 8.37 billion), engineering goods (US$ 1.28 billion), electronic goods (US$ 1.02 billion), organic chemicals (US$ 672 million), drugs and pharmaceuticals (US$ 496 million), etc. during April-November 2023-24.

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

  • India imported 4,109 commodities from the Netherlands in FY23.
  • 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$ 3.52 billion from April-November 2023-24.
  • Major imported items by India from the Netherlands include Nuclear Reactors (US$ 537 million), electrical machinery (US$ 469 million), optical and photographic apparatus (US$ 355 million), organic chemicals (US$ 256 million), plastic and plastic articles (US$ 215 million), etc. during April-November 2023-24.

Economic Relations and Investments

  • The cumulative FDI inflows from the Netherlands to India from April 2000-September 2023 amounted to US$ 45.68 billion.
  • During the F.Y. 2022-2023, the total merchandise trade with the Netherlands stood at USD 27.580 billion (INR 222,286.42 crores) compared to USD 17.022 billion in the F.Y. 2021-2022, a YoY growth of 62.03%. The total merchandise trade with the Netherlands accounts for 2.37% of India’s total merchandise trade.
  • 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$ 45.68 billion from April 2000-September 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.
  • The President of India Mr. Ram Nath Kovind paid a State Visit to the Netherlands from 4-7 April 2022. The President welcomed Dutch start-ups and SMEs working in geospatial mapping, Artificial Intelligence, clean energy, assistive technology, and biomedical devices to ‘Make in India’ and innovate in India. Other announcements during the visit include extension of MoU on bilateral cooperation in the field of Ports, Maritime Transport, and Logistics, and the extension of the Programme of Cooperation between Department of Biotechnology, Government of India and Ministry of Economic Affairs, Agriculture and Innovation, Government of the Netherlands.
  • 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.
  • The Dutch Prime Minister Mr. Mark Rutte led the Netherlands Trade Mission to Bengaluru from 10-14 September 2023. The trade mission followed the 18th G20 Summit in New Delhi from 9-10 September 2023. Around 90 representatives from over 60 Dutch companies were part of the trade mission representing the sectors of key enabling technologies, medical technologies and sustainable food systems. Around 27 MoUs were signed by Dutch and Indian stakeholders to reinforce the partnerships in semiconductors, cloud computing, sustainable agriculture, research and development in greenhouses, crop varieties, and technology development for the affordable healthcare sector.

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

Partners
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