Having previously worked with the Dutch government to strengthen bilateral ties between India and the Netherlands, I love to monitor cooperation on the political, commercial, and cultural fronts. My goal in writing this note is to keep my network informed on collaboration between both counties.
Over the course of more than 77 years, India and the Netherlands have developed strong diplomatic, economic, and cultural ties. Since its founding in 1947, the bilateral relationship has developed into a complex partnership characterised by robust trade, high-level exchanges, and mutual investments. It is worthwhile to investigate the fundamentals of cooperation and the future prospects of this long-lasting partnership.
A Robust Base: Economic and Political Links
One of the main pillars of India and the Netherlands’ cooperation has been their diplomatic relationship. This partnership has been stimulated over the years by high-level visits and exchanges, which have promoted collaboration in a number of sectors. With bilateral trade hitting a record high of USD 27.335 billion in 2023-24 1, the Netherlands is currently India’s fourth-largest trading partner in Europe. This figure includes about USD 5 billion in imports to the Netherlands and USD 22.4 billion in exports from India.
With total FDI equity inflows of USD 52 billion between April 2000 and September 2024, the Netherlands is another major investor in India. India is home to more than 300 Dutch businesses, including multinational behemoths like Philips, Heineken, Akzo Nobel, and KLM. These businesses have not only helped India’s economy flourish but have also introduced innovative and cutting-edge technology to the nation.
Priority Sectors: Agriculture, Health, and Water (WAH)
India and the Netherlands have identified water management, agriculture, and health (WAH) as key areas for cooperation 2. The Netherlands is a natural partner in these areas because of its knowledge of sustainable agriculture and water management, which complements India’s developmental objectives. In a similar vein, health cooperation has accelerated, especially since the COVID-19 pandemic, with both nations collaborating on medical research, innovation, and solutions.
Cultural Collaboration: Overcoming Traditions
Over time, India and the Netherlands have also developed closer cultural ties. In the Netherlands, yoga has become very popular as a representation of India’s ancient wisdom. Given the widespread passion for yoga, the International Day of Yoga has been observed every year. Founded in 2011, the Gandhi Centre in The Hague is a cultural centre that hosts events that highlight India’s rich cultural legacy in addition to providing yoga, Sanskrit, tabla, Kathak, and Hindi classes.
Dutch Indian diaspora
An important factor in fostering these cultural ties is the Dutch Indian diaspora, which is the second-largest in Europe after the UK. The diaspora serves as a link between the two countries and is made up of about 60,000 Indians and 200,000 Surinami-Hindustani people. With more than 3,500 students presently pursuing higher education at Dutch universities like TU Delft, Leiden University, and Maastricht University, the Netherlands is also a popular destination for Indian students, especially in the fields of science and technology.
Indian Businesses in the Netherlands
The Netherlands is currently the fourth-largest destination for Indian companies’ Overseas Direct Investment (ODI). Over 300 Indian businesses have set up shop in the Netherlands, including industry titans like Sun Pharmaceuticals, Tata Steel, and LT Foods, as well as IT majors like TCS, Infosys, Wipro, and HCL. Indian businesses have made strategic acquisitions, like the Serum Institute of India’s acquisition of Bilthoven Biologicals, OYO’s acquisition of Amsterdam-based @Leisure Group, and Tata Steel’s acquisition of Anglo-Dutch Corus.
Companies like Sonalika have successfully exported their low-horsepower tractors to European countries after setting up their base in the Netherlands. Indian companies in the shrimp sector also participate in European exhibitions to gain market access.
The decision by Eicher Motors to establish operations in the Netherlands as a result of Brexit 3 is a notable development that emphasises the nation’s strategic significance as a gateway to Europe. Furthermore, the establishment of an Amity School in the Netherlands highlights the two countries’ expanding educational and cultural ties.
Opportunities and Difficulties
Despite the significant growth of the Netherlands-India relationship, certain issues still require attention. The absence of an Indian bank in the Netherlands creates difficulties for Indian businesses, complicating their financial transactions and operations. There was also a void in air connectivity between the two nations as a result of Jet Airways ceasing operations. But the return of Air India to Amsterdam has been a huge help, allowing for more travel and commerce
India-Netherlands start-up collaboration
Dutch companies are looking to invest in Indian start-ups, especially in the agricultural sector. Nutreco, a division of Trouw Nutrition that specialises in animal feed and their aquaculture feed branch, Skretting, is one such company, and it plans to eventually acquire the Indian start-up Eruvaka. Many investments in start-ups are facilitated through venture capital firms like Omnivore, in which the Netherlands’ public-private entrepreneurial development bank, FMO, has taken a significant share.
There are several Indian startups active in the NL. Planys Technologies and Cropin (4 expanded to the Netherlands a few years back. Similarly, Dutch startups that are keen to collaborate with Indian companies.
Indo-Dutch StartUp Link 5 acts as a first point of contact for navigating the startup ecosystems in both countries.
Looking Ahead
The scope for future cooperation between India and the Netherlands is tremendous. The two countries can open up new trade, innovation, and sustainability opportunities by filling in current gaps and utilising their complementary strengths. Both countries are in a position to build on their shared history and forge a more promising and prosperous future as they look ahead.
- Directorate General of Commercial Intelligence and Statistics (DGCIS), Ministry of Commerce and Industry, Government of.
- https://www.indianembassynetherlands.gov.in/page/india-netherlands-relations/.
- Royal Enfield maker Eicher Motors sets up Dutch unit for EU expansion plan.
- https://oostnl.com/news/cropin-technology-from-india-strengthens-its-european-presence-with-new-office-in-arnhem.
- https://www.startupindia.gov.in/content/sih/en/international/indo-dutch.html.
