The Netherlands was India’s third largest export market as per authorities information for April-December 2022. The soar in Indian outbound shipments, particularly of petroleum merchandise, resulted in a US$12.3 billion commerce surplus with the Netherlands in 2022.

A look at India-Netherlands commerce information

The Netherlands turned India’s third largest export vacation spot in FY 2023, for the months of April-December 2022, as per information from the Ministry of Commerce. The Netherlands took over the UK, Hong Kong, Bangladesh, and Germany – to function within the prime three export markets for India.

Previously, in 2021-22, the Netherlands was India’s fifth largest export hub whereas in 2020-21 it was the ninth.

Outbound shipments from India to the Netherlands in 2021-22 was US$12.55 billion, a soar from the US$6.5 billion recorded in 2020-21. The enhance to India’s export progress has been evident lately – in any case, Indian exports to the Dutch nation amounted to simply US$880 million in 2000-01.

India’s commerce surplus with the Netherlands grew to US$12.3 billion in 2022 – a visual enhance from the US$1.5 billion surplus recorded in 2017. For the calendar 12 months 2022, Indian exports to the Netherlands had been valued at US$18.1 billion, up from US$5.5 billion in 2017.

For the interval April-December 2022, India’s exports to Netherlands grew 69 p.c to achieve US$13.67 billion, larger than the US$8.10 billion recorded throughout the identical interval within the previous 12 months.

New Delhi is prioritizing export-led progress, having accelerated free commerce offers with the UAE and Australia in 2022 and severely pursuing commerce negotiations with the UK and the European Union. 

What is inflicting the soar in India-Netherlands two-way commerce?

Driving up the commerce momentum between India and the Netherlands are India’s outbound shipments of petroleum merchandise, electronics items, chemical compounds, and aluminum items. As per information from the Global Trade Research Initiative, Indian petroleum merchandise like aviation turbine gas (ATF) and diesel dominated the export basket and throughout the electronics class, telecom gear and smartphone shipments had been valued at over US$1 billion.

Speaking to PTI, Federation of Indian Export Organization (FIEO) Director General Ajay Sahai defined that petroleum exports from India to the Netherlands grew from US$2.7 billion throughout April-November 2021-22 to US$6.4 billion as power firms use the European nation as a distribution hub. Other notable exports to the Netherlands are aluminum, electrical and electronics gadgets, and prescribed drugs – however whose ultimate shopper markets might be Germany or France.

Exporters choose the Netherlands for his or her delivery operations because the nation constantly ranks among the many prime of the World Bank Logistics Performance Index. It boasts of a complicated digital logistics structure, in addition to environment friendly seaports, air transport, and business-friendly VAT implementation – making it simpler for firms to achieve European and EU clients. Interestingly, logistics specialists comprise greater than 10 p.c of the Dutch workforce.

A rising funding partnership

The Netherlands is amongst India’s prime 5 investor nations. In the April-September interval of FY 2022-23, India acquired US$1.76 billion in overseas direct funding (FDI) from the Netherlands. It was US$4.6 billion in 2021-22.

Key areas of cooperation between India and the Netherlands are agriculture, well being, port and delivery, science and expertise, larger schooling, and concrete improvement. Both nations are engaged on strategic partnerships within the water sector as Netherlands is a pioneer in water administration in addition to science and R&D.

Over 200 Dutch firms have a presence in India, together with Royal Dutch Shell, Unilever, Philips, AkzoNobel, DSM, KLM, and Rabobank.