INDIA-NETHERLANDS BILATERAL TRADE & INVESTMENT
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INDIA-NETHERLANDS BILATERAL TRADE & INVESTMENT

1. Economic and commercial ties between India and Netherlands are an important facet of overall Indo-Dutch relations. India’s economic interests in the Netherlands include technical cooperation as a partner in key areas such as: transport and logistics infrastructure, water management, environment, agriculture and food processing, services and science & technology, and in promoting further FDI from an already significant investment partner.

2. Indo-Dutch bilateral relations have continued to develop and gain momentum in the past years.  Both the Indian and the Dutch governments attach great importance to the bilateral economic relationship and look forward to further consolidating the robust and rapidly expanding ties between the two countries. The summit between the Dutch and Indian Prime Ministers in New Delhi on June 5, 2015, and the roadmap for cooperation charted by the two has given a fresh impetus to the bilateral relationship.

3. In terms of trade and investment, India has strong economic interests in the Netherlands, which is at present the sixth largest investor of FDI into India and is the 28th largest trading partner globally and 6th largest trading partner in the EU. The Port of Rotterdam forms an important entry point for Indian exports and accounts for around 25% of Indian exports to the European Union. Trade and investment cooperation is a key component of India-Netherlands relationship and has shown satisfactory growth. Bilateral trade stood at Euros 4.8 billion in 2016. The trade balance continues to be in favour of India.  However, there is potential for further growth in the trade relations.  Netherlands is home to a number of multinational and other companies, many of which have their production sites and business operations in India.  It is also a source of useful technical know-how, besides FDI, in a variety of sectors – water management, upgrading of ports and airports, dredging, agro-processing, telecommunication, energy, oil refining, chemicals, and financial services. 

The progression of bilateral trade in the period 2000 - 2016 (in million Euros) is given below:

Year

Indian Exports

% Change

Dutch Exports

% Change

Total Trade

% Change

Balance of Trade

2000

837.05

17.76

537.54

11.80

1374.59

15.36

299.51

2001

881.30

5.02

537.38

0.03

1418.68

4.22

343.92

2002

889.76

0.96

511.41

- 4.83

1401.17

- 1.23

378.35

2003

1031.31

15.91

547.21

7.00

1578.52

12.66

484.10

2004

1044.44

1.27

771.09

40.91

1815.53

15.01

273.35

2005

1377.78

31.92

888.23

15.19

2266.01

24.81

489.55

2006

1665.86

20.91

1105.48

24.46

2771.34

22.30

560.384

2007

1794.01

8.13

1577.03

43.66

3371.04

21.64

216.98

2008

2309.31

28.72

1565.02

- 0.76

3874.33

14.93

744.29

2009

2384.99

3.28

1667.46

6.54

4052.45

4.60

717.53

2010

3286.56

37.80

1716.92

2.97

5003.48

23.47

1569.64

2011

3578.19

8.87

1863.90

6.99

5442.09

8.77

1714.29

2012

4468

24.40

1915

2.8

6383

17

2553

2013

4129.51

-7.57

1632.37

-14.8

5761.88

-9.73

2497.14

2014

2689.62

-34.87

1856.90

13.75

4546.52

-21.09

832.72

2015

3001.77

11.60

1926.81

3.76

4928.58

8.40

1074.96

2016

2990.97

-0.36

1818.51

-5.62

4809.48

-2.42

1172.46


4.   The main items of Indian Exports to the Netherlands in 2016 were
Petroleum products and related products (19.82%) comprising mainly of refined petroleum products (19.79%); miscellaneous manufactured articles (19.5%) in which articles of apparel and clothing formed the largest group accounting for 11.2% of our total exports; manufactured goods classified by material (15.49%) in which textile yarn, fabrics, made-up articles (4.13%), manufactures of metals (3.52%) and iron & steel (3.44%) were the main items of exports; chemicals & related products (15.21%) in which organic chemicals (7.74%) and medicinal and pharmaceutical products (3.04%) were the main products of export; machinery & transport equipment (13.11%) in which electric machinery (3.61%); telecommunication equipment (3.26%), general industrial machines (1.47%) and road vehicles (1.20%) were the main items of export; food & live animals (11.81%) in which vegetables & fruit (5.26%), marine products (3.38%), rice (1.28%) and coffee, tea, cacao, spices etc (1.13%) were the main products of export. 

5.    The main items of Indian Imports from the Netherlands in 2016 were: chemicals & related products (30.30%) comprising mainly of primary plastics (8.6%), organic chemicals (7.23%), chemical materials and products (6.17%), medicinal & pharmaceutical products (5.86%); machinery & transport equipment (29.43%) comprising mainly of electric machinery (6.16%); general industrial machinery (6.19%), other transport equipment (3.83%), telecommunications equipment (3.76%), special machinery (3.23%), power generating machinery & equipment (2.56%); miscellaneous manufactured articles (15.02%) comprising mainly of professional, scientific instruments (8.3%), miscellaneous articles (5.77%), medical instruments and apparatus (4.51%) and manufactured articles (4.11%); crude materials (12.82%) comprising mainly of metal ores & scrap (9.72%) and crude animal and vegetable materials (1.16%); manufactured goods classified by materials (8.16%) comprising of non-ferrous metals (1.81%), metal manufactures (1.41%), paper, paperboard and articles (1.40%), iron & steel (1.29%) and textile yarn, fabrics, made up articles (1.21%).

6.    Netherlands is the sixth largest investor in terms of foreign direct investment into India with FDI inflows during period April 2000 to December, 2016, amounting to US $ 19.81 billion (accounting for 6% of total inflows into India). Netherlands was the fourth largest investor during the financial years 2012-13, 2013-14 and 2015-16 and the third largest investor in the financial year 2014-15.

7.   There are more than 200 Dutch companies already present in India. Major Dutch companies like Shell, Unilever, Akzo Nobel, DSM, Philips, KLM and Rabobank have a presence in India. Dutch SMEs with niche technologies and world-class expertise are also actively looking at the Indian market.

8.  As per figures of the Dutch Central Bank, In 2014, Indian investments to the Netherlands were Euros 2.376 billion and total Indian investments in the period 2004-14 were Euros 11.840 billion.

9. The Netherlands is steadily becoming an attractive destination for investments from India and figures amongst the top destinations. There are over 200 Indian companies having a presence in the Netherlands. These include all the major IT companies such as TCS, HCL, Wipro, Infosys, Tech Mahindra, NIIT, etc. Other prominent companies include Moser Baer,  ONGC Videsh, Sun Pharmaceuticals, Tata Steel, Kirloskar Brothers, Dr. Reddy’s Labs, Viraj Profiles etc.  Major acquisitions in the Netherlands by Indian companies were: Tata Steel acquired the Anglo-Dutch Corus for US $ 7.6 billion; Apollo Tyres acquired the Dutch tyre maker Vredestein Banden and; The Serum Institute of India acquired the Dutch Bilthoven Biologicals which has given it access to technology and expertise for making the Injectable Polio Vaccine (Salk).  Many Indian companies are exploring the possibilities for further tie-ups.

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