India And Netherlands’ Growing Trade, Becomes India’s Third-Largest Export Destination, 2022-23
Over the past decade, trade between India and the Netherlands has experienced significant growth. Both countries have actively worked towards strengthening their economic ties, resulting in increased bilateral trade volumes.
According to the latest data released by the commerce ministry, the Netherlands has become India’s third-largest export destination, following the United States and the United Arab Emirates, during the period of 2022-23.
The surge in exports of petroleum products, electronic items, chemicals, and aluminium goods has contributed to the Netherlands becoming India’s third-largest export destination, according to the commerce ministry. Additionally, India’s trade surplus with the Netherlands has risen from USD 8 billion in 2021-22 to USD 13 billion in 2022-23.
In 2022-23, the Netherlands surpassed significant export destinations such as the UK, Hong Kong, Bangladesh, and Germany. India’s exports to the Netherlands experienced a notable increase of approximately 48%, reaching USD 18.52 billion compared to USD 12.5 billion in 2021-22.
India’s exports to the Netherlands have been consistently registering robust growth since 2000-01 when it stood at USD 880 million. In 2021-22, outbound shipments reached USD 12.55 billion, followed by USD 6.5 billion in 2020-21, indicating a positive upward trend in exports to the European country.
During 2021-22, the Netherlands climbed to the fifth position among Indian export destinations, a significant jump from the ninth position in 2020-21. Ajay Sahai, the Director General of the Federation of Indian Export Organisations (FIEO), highlighted that the Netherlands has become a hub for Europe due to its efficient ports and excellent connectivity with the European Union (EU) through road, railways, and waterways.
Growing Trade, Netherlands
Between 2017 and the calendar year 2022, India’s exports to the Netherlands experienced a significant rise from USD 5.5 billion to USD 18.1 billion. According to the economic think tank GTRI (Global Trade Research Initiative), aviation turbine fuel (ATF) and diesel were the primary petroleum products exported from India to the Netherlands.
According to the report, telecom equipment and smartphones, valued at over USD 1 billion, were the major electronic items exported to the Netherlands. Sharad Kumar Saraf, Chairman of Mumbai-based exporter Technocraft Industries, expressed his belief that this trend would persist in the future as well. Saraf emphasized that the Netherlands serves as a gateway to Europe due to the efficiency of its ports, making shipping operations more cost-effective compared to other European ports.
In 2022-23, bilateral trade between India and the Netherlands reached USD 24 billion, marking an increase from USD 17 billion in 2021-22 and around USD 10 billion in 2020-21.
India’s Growing Trade Numbers
The Netherlands holds a significant position among India’s top trading partners in Europe, following Germany, Switzerland, the UK, and Belgium. Additionally, the Netherlands is a major investor in India, with foreign direct investment from the country amounting to USD 1.76 billion during April-September of the current fiscal year (2022-23). This is compared to USD 4.6 billion in 2021-22.
Both countries host a substantial number of companies from each other’s nations. Over 200 Dutch companies operate in India, including prominent names like Philips, Akzo Nobel, DSM, KLM, and Rabobank. Likewise, there are more than 200 Indian companies present in the Netherlands, encompassing major IT firms such as TCS, HCL, Wipro, Infosys, Tech Mahindra, as well as Sun Pharmaceuticals and Tata Steel.
The Strong Growing Connection
India and the Netherlands have engaged in diverse trade sectors, including agriculture, chemicals, machinery, textiles, and services. The Netherlands has been an important trading partner for India in Europe, serving as a gateway for Indian businesses to access the European market.
The trade relationship between the two countries has been facilitated by several factors.
Firstly, the signing of bilateral agreements, such as the Double Taxation Avoidance Agreement and the Bilateral Investment Promotion and Protection Agreement, has created a favorable environment for trade and investment.
Secondly, the presence of Indian diaspora and businesses in the Netherlands has played a crucial role in enhancing economic cooperation.
The Netherlands has emerged as a key destination for Indian exports, especially in sectors like textiles, pharmaceuticals, and agricultural products.
Similarly, Dutch companies have shown a growing interest in the Indian market, particularly in areas such as technology, renewable energy, and infrastructure development.
Efforts to strengthen trade ties have also been accompanied by high-level visits and business delegations between the two countries. These interactions have provided platforms for business networking, knowledge exchange, and exploring new opportunities.
The Last Bit, the trade between India and the Netherlands has grown substantially over the past decade. Both countries have actively fostered economic cooperation, resulting in increased bilateral trade volumes and the exploration of new business avenues
